This week Greek lenders reported increased earnings for 2024 that allow them to distribute handsome dividends to their shareholders, a clear sign of the sector emerging from the long crisis that prevented it from sharing profits with investors.
The dividend that Alpha Bank’s management will propose to its shareholders for the fiscal year 2024 amounts to 281 million euros, with 75% of this amount, approximately €210 million euros, being a share buyback. Adjusted profits after taxes increased by 9% in 2024 compared to 2023, reaching €861 million, while net income amounted to €654.1 million, recording an increase of 5.8%. The core capital ratio (CET1) stood at 16.8% and the total capital adequacy ratio amounted to 22.6%.
National Bank’s new business plan foresees the distribution of 60% of its net profits as dividends in the three-year period 2025-2027. The lender said on Friday it recorded organic profits after taxes of €1.3 billion in 2024. The basic capital adequacy ratio reached 18.3%, loan disbursements exceeded €9 billion, and net interest income increased by 4% year-on-year to €2.3 billion. According to the management, the high profitability allows for the growth of the group, as well as the exploration of opportunities at home and abroad. “We exceeded the targets we had set for 2024,” said the group’s CEO, Panos Mylonas.
On Thursday Eurobank hiked its profit goal for the coming years after reporting strong net earnings for 2024 thanks to higher net interest and growing foreign business. The bank reported net earnings of €1.45 billion for 2024, up 27% from the €1.14 billion in 2023 supported by its activities in Cyprus and Bulgaria. “We are distributing 50% of our profits to our shareholders through cash dividend and share buyback,” said Eurobank CEO Fokion Karavias.
Like other Greek lenders, whose profits have been boosted by higher net interest income and a strong rebound of the Greek economy, Eurobank upgraded its expectations on its core profit outlook for the coming years. It expects core operating profit to reach €1.9 billion in 2027 from €1.78 billion in 2025, boosted by its absorption of Cyprus’ Hellenic Bank last year, its organic loan growth and wealth management, the bank said. Net interest income, which reflects the gap between lending and deposit rates, rose 15.3% in 2024 to €2.5 billion, from €2.17 billion in 2023.