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Big banks in Cyprus and Greece are riding a wave of strong performance so far in 2025, catching the eye of investors and hinting at even brighter prospects ahead, according to Kathimerini's Panayiotis Rougalas.
Since the start of the year, all major lenders have posted solid returns, with stock prices surpassing their tangible book value (P/TBV) and profitability indicators (ROTE) at high levels. At the same time, the banks are offering attractive dividend yields, something many could not do in previous years. Analysts say these trends signal a healthy banking sector, provided economic conditions remain stable.
The five leading banks, Bank of Cyprus, Eurobank, Alpha Bank, National Bank of Greece, and Piraeus Bank, are leveraging these strong numbers in upcoming “roadshows” to present themselves to investors. Between September and year-end, at least five investor meetings are planned across Europe, with banks aiming to expand their shareholder base and attract long-term investment that adds value to their stocks.
Stock prices are reflecting the optimism. As of August 19, Bank of Cyprus shares closed at €7.52, National Bank of Greece at €12.90, Piraeus Bank at €7.19, Alpha Bank at €3.46, and Eurobank at €3.44. Price-to-tangible-book-value ratios for all five banks are above 1, a significant turnaround from previous years, with Eurobank and National Bank of Greece at 1.46, Bank of Cyprus at 1.30, Piraeus at 1.22, and Alpha Bank at 1.07.
Profitability remains strong. Mid-year ROTE figures show Bank of Cyprus at 18.2%, National Bank of Greece at 17.5%, Eurobank at 16.6%, Piraeus Bank at 14.1%, and Alpha Bank at 11.7%. Experts say banks are benefiting from interest rate trends of recent years while successfully diversifying revenue sources.
Dividends are also back in focus. After years of restrictions, banks are offering payouts to shareholders, adding an extra incentive for investors. Bank of Cyprus targets a 70% payout ratio, National Bank of Greece 60%, Eurobank 55%-60%, and both Alpha Bank and Piraeus Bank around 50%.
With strong financials, attractive dividends, and strategic investor outreach, Cyprus and Greek banks are positioning themselves for a promising second half of 2025 and giving investors good reason to pay attention.
