The Greek banking system continues to post positive results in the first quarter of 2026, further aligning itself with the largest European banks.

The picture is characterized by strong profitability, high capital adequacy, significant liquidity, and continuous improvement in asset quality. At the same time, the banks’ returns remain higher than the average for the Eurozone, a fact reflected both in their performance and in the ratings assigned by international agencies.

According to a recent report by the European Central Bank, Greek banks outperform the European average on a number of key indicators.

The standout figures

  • Annual growth in activity reached 8.73%, compared to 4.7% in Europe.
  • Organic profitability stood at 4.82%, while the corresponding average for European systemic banks was 2.77%.
  • The cost-to-income ratio stood at 36%, significantly lower than the 55% recorded in Europe, while return on equity stood at 11%, compared to 10% in the Eurozone.
  • In terms of liquidity, the loan-to-deposit ratio stood at 65%, compared to 102% in Europe, while the liquidity coverage ratio reached 189%, compared to 154%—the European average.

The picture according to the Bank of Greece

In the latest Report on Monetary Policy, the Bank of Greece notes a further strengthening of the banking system’s fundamentals.

Strong capital base

The return on equity (ROE) stood at 10.7%, remaining above the Eurozone average and confirming the improvement in the banks’ operational efficiency.

The CET1 ratio rose to 14.9%, while the total capital ratio remained close to 20%, providing significant buffers against potential external pressures.

Greek banks’ performance in international markets was also particularly positive. In 2025, they raised 2.7 billion euros through AT1 securities and an additional 0.9 billion euros through Tier II bonds.

This momentum continues in 2026, with new issuances of capital and senior bonds, while since the beginning of the year, approximately 1.2 billion euros have been raised through green bonds, bolstering the financing of investments related to the green transition.

Continued improvement in loan portfolios

Asset quality continues to improve.

The non-performing loan (NPL) ratio stood at 3.4% in the first quarter of 2026, remaining virtually unchanged from the end of the previous year.

Although it remains above the Eurozone average, the gap is steadily narrowing.

At the same time, the percentage of Stage 2 loans—that is, performing loans with elevated credit risk—fell to 6.8%, which is lower than the corresponding European average.

This development led to lower credit risk provisions and further strengthened the banks’ organic results.

In their medium-term business plans, management continues to forecast a further reduction in NPLs, with the aim of achieving even greater convergence with European levels.