BoG: Prospects for local banks remain positive

The prospects for Greek banks stay positive, arsenic strong fundamentals enactment arsenic a counterbalance to accrued uncertainty and outer risks, according to Bank of Greece’s Financial Stability Review published connected Tuesday.

It notes, however, that a prolonged struggle successful the Middle East could adversely impact the fiscal information of businesses and households successful Greece, arsenic well arsenic the prime of banks’ indebtedness portfolios and their quality to conscionable recognition enlargement targets.

Therefore, further strengthening of the fiscal system is simply a priority, and vigilance is required from each stakeholders. Regarding developments implicit the past year, the study highlights that Greek banking groups recorded after-tax profits (including discontinued operations) of €4.7 billion, compared to €4.2 cardinal successful 2024.

This summation was driven by higher non-interest income and little loan-loss provisions. Negative contributors included reduced gains from fiscal transactions and higher operating expenses, chiefly owed to accrued administrative costs.

Capital adequacy remained astatine a satisfactory level: The Common Equity Tier 1 (CET1) ratio connected a consolidated ground decreased to 15.3% successful December 2025 from 16% successful December 2024, while the Total Capital Ratio (TCR) edged down to 19.7% from 19.8%.

The prime of banks’ indebtedness portfolios improved. In December 2025, the ratio of nonperforming loans (NPLs) to total loans stood astatine 3.3% (down from 3.8% successful December 2024), arsenic recognition enlargement was accompanied by a simplification successful NPLs. This is the lowest level since Greece joined the euro country and is present adjacent to the mean of important banks successful the Banking Union.