Banks’ high profit potential

JPMorgan remains positive about the prospects of Greek banks in a research report reflecting their second-quarter results.

Analyzing the profile of each of the "big four" banks (Alpha, Eurobank, National and Piraeus), the US bank notes the catalysts that could unlock more value and profits for shareholders.

On Alpha Bank, JPMorgan believes that key to its development is the expected conclusion of a series of transactions with Italy's UniCredit. These involve the merger of their respective subsidiaries in Romania, the acquisition of a majority stake (51%) in AlphaLife and the availability of UniCredit portfolio management and insurance products, and the acquisition by UniCredit of the remaining 9% share in Alpha still held by the Financial Stability Fund.

JPMorgan notes Alpha shares' relative underperformance so far given a lower return on tangible equity (ROTE)...