Banks on investors’ radars

Greek banks have long been on the market's radar following their turnaround with a return to profitability, an impressive boost to earnings from the ECB's rate hikes, a significant decline in NPE ratios and management estimates for dividend distribution after many years. However, the sector is also facing significant challenges and risks, as analysts point out in their new reports: Maintaining profitability, the effects of tightening financial conditions and digitization are now the big challenges.

Bank of America characterizes the current narrative surrounding Greek banks as "tomorrow's promised land." It argues that they are all aiming to restore dividends in 2024, most of the reduction in NPEs is now behind them, while the state is set to regain investment grade within the next year and this will widen the investor audience for Greek assets. 

With rising interest...