Banks are in the best position in many years

In an environment of intensifying global challenges, in 2025, the Greek economy maintained a strong growth rate, exceeding the euro area average for the fifth consecutive year. Real GDP grew by 2.1% - as in 2024 - supported by growth in investment, consumption and net exports, and helped by European Development Fund financing, Piraeus Bank President George Hadjinicolaou said, speaking at the Bank's Annual General Meeting. He said that the positive macroeconomic developments in Greece in 2025 have allowed the banking sector to continue its positive course that we have seen in recent years.

In more detail:
- During 2025, the profitability of Greek banks continued the upward trend of recent years, supported mainly by credit expansion, a significant increase in net fee and commission income, and a reduction in provisions for credit risk. As a result, return on equity moved to a high level.
- Private sector bank deposits grew faster in 2025 than in 2024, increasing by €10.4 billion (compared to €8.6 billion in the previous year), which is the largest increase since the pandemic. As a result, the total balance of private deposits reached EUR 213 billion, the highest level since June 2010.
- Capital adequacy ratios have remained high, and are now largely in line with their European counterparts. And the non-performing loan (NPL) ratio declined further to 3.3% in 2025 (from 3.8% in December 2024), coming even closer to the euro area average (2.2%).
- These positive developments were reflected in the upgrades of the credit ratings of Greek systemic banks in the investment grade category, resulting in a reduction in banks' borrowing costs.
- The reduction of Eurosystem interest rates and the reduction of banks' refinancing costs from the capital and bond markets resulted in a reduction in the cost of bank borrowing for businesses and households.

Developments in 2025 confirm once again the interconnectedness between the economy and the banking sector and the dynamics of the virtuous circle, and underline the importance of economic stability and economic growth as prerequisites for positive bank returns. And banks, in turn, support economic growth with healthy credit expansion underpinned by capital and deposits generated by the positive environment.

It is no exaggeration to say that Greek banks, benefiting from this virtuous cycle, are in the best position in the last many years, with strong capital adequacy, high liquidity, and in the best possible position to finance the Greek economy, reflecting the progress of the Greek economy in recent years, the Piraeus Bank President said.
For Piraeus, 2025 was a very productive year, as it exceeded its targets in all areas, with milestones such as the systematic progress of the Group's transformation, the consolidation of high profitability and the reward of shareholders through a strong dividend policy, and the creation of goodwill, Hatzinikolaou said. Speaking about 2026, he said that Piraeus will continue to evolve into a more agile and technologically mature organisation, with digital capabilities and strategic use of data embedded at the core of its operating model, improving its ability to serve its customers more efficiently.

H.Megalou: Despite continued international volatility, Greece's macroeconomic fundamentals are consistently improving
Despite continued international volatility, Greece's macroeconomic fundamentals are consistently improving, creating conditions for sustainable growth, said Piraeus Bank CEO Christos Megalou, speaking at the Bank's Annual General Meeting. He said the country now has an investment grade credit rating from all rating agencies, with Greek government bond spreads converging to the Eurozone average, supported by lower unemployment levels, recurrent primary surpluses and continued reduction in public debt. The untapped potential in many market sectors reinforces Piraeus Bank's strategic commitment to maintain Greece as its main market of operations.

Mr.Megalou referred extensively to the bank's positive financial performance for 2025, noting that it was a year of strong performance and strategic moves. Piraeus Group continues to grow, recording dynamic net credit expansion, deposit inflows and more funds under management, while asset quality remains high. «We achieved a return on equity of 16% with tangible equity per share at EUR 5.9. Our revenues showed resilience as our loan portfolio grew by 11% per annum, with EUR 3.9 billion of net credit expansion, exceeding the annual target. We continue to create value for our clients who trust us with the largest asset base under management in the country: EUR 66 billion in deposits and EUR 14.5 billion in investment funds. Capital adequacy ratios remain at strong levels following the acquisition of Ethniki Insurance, supporting growth, distributions to shareholders and continued investment. The overall capital ratio stood at 18.7% as of December 2025,» he said among other things. He also detailed the Business Plan 2026-2030. The strategy focuses on three main priorities. Strong and profitable growth, enhanced efficiency and optimal capital allocation by focusing on shielding the balance sheet, maintaining high reserves against regulatory requirements and increasing distributions to shareholders.