BoG: Net profits of €4.7 billion for banks in 2025 – Positive outlook, but vigilance still needed

The Financial Stability Report was posted contiguous connected the Bank of Greece’s website. It is issued doubly a twelvemonth by the Financial Stability Directorate.

The study reviews developments successful the macroeconomic and fiscal environment, assesses risks and the resilience of the banking sector, security companies and different parts of the fiscal system, and analyzes the functioning of fiscal marketplace infrastructures (payment systems, cardinal securities depositories and cardinal counterparties).

It focuses connected developments successful the banking assemblage successful 2025 and besides includes 3 Special Topics:

a) Special Topic I presents the appraisal model developed by the Bank of Greece for identifying and classifying systemic risks (“Systemic Risk Heatmap”) successful the Greek fiscal system, aiming to representation and show the improvement of vulnerabilities implicit time.

b) Special Topic II analyzes caller developments successful the usage of Distributed Ledger Technology (DLT) successful fiscal markets.

c) Special Topic III presents the model for managing risks from third-party Information and Communication Technology (ICT) work providers and its implementation successful Greece nether Regulation (EU) 2022/2554 (Digital Operational Resilience Act – DORA).

In 2025, Greek banking groups recorded post-tax profits from continuing and discontinued operations of €4.7 billion, up from €4.2 cardinal successful 2024. This summation was driven by higher income from non-interest activities and reduced provisions for recognition risk. Negative contributions came from little income from fiscal transactions and higher operating expenses, chiefly owed to accrued administrative costs.

The superior adequacy of Greek banking groups remained astatine a satisfactory level. Specifically, the Common Equity Tier 1 (CET1) ratio connected a consolidated ground declined to 15.3% successful December 2025 from 16% successful December 2024, portion the Total Capital Ratio (TCR) edged down to 19.7% from 19.8%.

The prime of indebtedness portfolios improved. In December 2025, the ratio of non-performing loans (NPLs) to full loans stood astatine 3.3% (from 3.8% successful December 2024), marking the lowest level since Greece joined the euro country and bringing it person to the mean of large banks successful the Banking Union.

The outlook for the banking assemblage remains positive, arsenic beardown fundamentals assistance offset accrued uncertainty and outer risks. However, a prolonged struggle successful the Middle East could negatively impact the fiscal presumption of businesses and households successful Greece, arsenic good arsenic banks’ plus prime and their lending maturation targets. Therefore, further strengthening of the fiscal strategy remains a priority, and continued vigilance from each stakeholders is required.