Strengthening credit expansion is becoming a key pillar for maintaining high profitability of Greek banks, but also to support the growth momentum of economy.

The results for the first quarter of 2026 show that the banking sector is moving at an accelerated pace, with total new lending estimated to reach or even exceed €15 billion in the year.

Bank managements have set particularly ambitious targets for this year. The National Bank is targeting a net credit expansion of 3 billion. euros, Eurobank at EUR 3,8 billion, Piraeus Bank at EUR 3 billion, EUR 3 billion and EUR 3 billion. EUR, Alpha Bank to EUR3,5 billion, CrediaBank to EUR1,2 billion. EUR and Optima Bank at EUR1,1 billion.

Dynamic start in Q1

The first figures for 2026 already reflect strong lending momentum. The banks that have reported results – not yet including Alpha Bank and CrediaBank – have shown a total credit expansion of 4.7 billion. euros in the first quarter.

Piraeus Bank posted a particularly strong performance, with its total loan portfolio standing at 38.6 billion. EUR, while net credit expansion reached EUR1.3 billion, with support from all key business sectors.

The National Bank said new disbursements in the first quarter were up 50%, while net credit expansion was 500 million.

Correspondingly, Eurobank achieved a net credit expansion of EUR1.1 billion, up 9.8%.

Bank of Cyprus new loans reached 829 million, up 9% compared to end-2025.

At the same time, Optima Bank continued its aggressive growth path, with loan disbursements reaching 1 billion. EUR in the first quarter of 2026, up 27% year-on-year.

Positive estimates from UBS

In a recent report, UBS notes that the momentum of credit expansion remains strong in Greece. According to the analysis, business loans increased by 10.9% year-on-year in March, consumer loans increased by 7.7%, while mortgage loans strengthened by 1.1%.

Meanwhile, non-performing loans continued to taper off, falling to 3,3% in the fourth quarter of 2025, down 30 basis points from the previous quarter.

Banks’ first-quarter earnings

Banks’ financial performance remained strong in the first quarter of 2026. The net profits of National Bank, Piraeus Bank, Eurobank, Optima Bank and Bank of Cyprus totalled 1.12 billion. EUR, showing a marginal decrease 0.27% compared to the same period last year.

National Bank reported a profit of 344 million. euros with a fall of 9.9%, Piraeus Bank recorded 278 million. euros with a decrease of 1.42%, while Eurobank reported a profit increase of 5.3%.

Bank of Cyprus reported a net profit of 121 million. euros, up 3%, while Optima Bank recorded a significant rise in profitability of 22%, with net profit amounting to 47.5 million. euros.

Interest and commissions up

Total net interest income was 1.93 billion. EUR, a slight increase of 1.4% compared to the first quarter of 2025.

The National Bank recorded interest income of 541 million. euros, Eurobank 664 million EUR, Piraeus Bank EUR481 million, Bank of Cyprus EUR181 million. EUR and Optima Bank EUR62 million.

The picture was even more impressive in commission income, which increased overall by 20%, reaching 590 million. euros from €490 million in the same period last year.

National Bank reported commission income of 114 million. EUR114 million, Piraeus Bank EUR210 million, Eurobank EUR203 million. EUR203 million, Bank of Cyprus EUR44 million, while Optima Bank recorded an explosive increase to EUR19 million. EUR from EUR12.1 million, up 57%.

The 2025 picture and the reduction of “red” loans

2025 was another strong year for the banking industry. The listed banks –National Bank, Piraeus Bank, Eurobank, Alpha Bank, Optima Bank, Bank of Cyprus and CrediaBank– recorded total after-tax profits of 5.458 billion. euros, up by 15.4%.

Net interest income was 9.307 billion, down 4.2%.

At the same time, the quality of loan portfolios continued to improve. The stock of non-performing loans (NPLs) decreased to 5.7 billion. euros, showing a fall of 5.2% or 310 million compared to December 2024.

It is worth noting that the overall reduction in MEDs compared to the highest level recorded in March 2016 now reaches an impressive 94,7%, or about 101.5 billion. euros.

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