Greek banks remain resilient – Alarm over war repercussions

The Greek banking assemblage is underpinned by sound fundamentals and it has besides strengthened its resilience to imaginable shocks, Bank of Greece said successful its Financial Stability Report.

Risks to fiscal stability successful Greece, arsenic identified by the cardinal bank, are linked to rising planetary vigor prices, heightened uncertainty stemming from geopolitical conflicts, and the imaginable for an abrupt repricing of assets successful planetary superior markets.

The Financial Stability Report, published semi-annually, reviews developments successful the macroeconomic and fiscal environment, assesses risks and the resilience of the banking sector, security undertakings, and different segments of the fiscal system, and analyzes the functioning of fiscal marketplace infrastructures (payment systems, cardinal securities depositories, and cardinal counterparties).

Bank profits scope 4.7 cardinal euros successful 2025

According to the Bank of Greece, Greek banking groups recorded profits aft tax and discontinued operations of 4.7 cardinal euros successful 2025, compared with 4.2 cardinal successful 2024. This show was supported by accrued income from non-interest activities and a simplification successful provisions for recognition risk. Offsetting factors included little income from fiscal operations and higher operating expenses, chiefly owed to accrued administrative costs.

Positive outlook – caution implicit Middle East developments

The outlook for the banking assemblage remains positive, arsenic strong fundamentals enactment arsenic a buffer against heightened uncertainty and outer risks.

However, the Bank of Greece warns that a prolonged struggle successful the Middle East could adversely impact the fiscal presumption of businesses and households successful Greece, arsenic well arsenic the prime of banks’ indebtedness portfolios and the accomplishment of their recognition enlargement targets.

“Further strengthening of the fiscal system remains a priority, and vigilance from each stakeholders is essential,” the cardinal slope emphasized.