Greece’s four systemic banks are expected to record profits amounting to 4.7 billion euros this year, against €3.6 billion in 2023, raising the dividend to be distributed close to €2 billion, up from €875 million in 2023.
The key to the soaring of dividend allocation, the doubling of profits that Alpha, National, Eurobank and Piraeus Bank will distribute for 2024, is a result of both increased profits and the higher than last year payout ratio that they will hand to their shareholders for the current financial year, starting depending on the bank from 35% up to 50%.
The increased distribution, starting in the current financial year, is accompanied by moves to accelerate the amortization of the deferred tax credit (DTC) from 2025 onwards with the aim of zeroing it seven years earlier, ie in 2034.
Based on the plans of lenders’ managers, the rate of DTC that will be amortized every year will correspond to 29% of the amount they will distribute through dividends or buybacks, while maintaining high capital indices.
Banks estimate that their operating revenues will also show resilience over the coming quarters, as the ECB interest rate cut will be offset by an increase in the loan portfolio, raising targets for total disbursements for the year.