[EPA]
S&P Global Ratings upgraded the credit ratings of National Bank of Greece, Eurobank, Piraeus and Aegean Baltic Bank on Friday, and affirmed the rating of Alpha Bank, citing the stronger institutional environment and the improved capital quality of the sector.
As the American agency notes, the strengthening of the supervisory authorities’ ability to act proactively against the challenges of the Greek banking system has reduced risks in the sector. Its analysts refer to the initiatives of the Bank of Greece to accelerate the consolidation of the banking system and mainly to the Hercules program.
At the same time, the consolidation of the Greek banking system and the implementation of macroprudential measures have contributed to the reduction of risks. S&P believes that the institutional framework of the Greek banking sector is now aligned with that of most eurozone countries.
The banking system has reached a turning point where it will seek to utilize capital to grow balance sheets and maintain profitability, while keeping new flows of bad loans limited. S&P estimates that systemic banks ended 2024 with NPEs between 2.5% and 4%, with a return on equity of 13.5%.