Greek Banks: Athens trip notes – no magic bullet (Alpha, Eurobank, NBG and Piraeus stay BUY)
We hosted a field trip in Athens last week and got the opportunity to meet the managements of the Greek banks and senior policy officials. The mood on the street seems to be muted, following the sell-off over the past two months. However, as there is no magic wand for the Greek banks to clear NPLs and replenish DTCs (unless someone can spare c.EUR 20bn), the action plan ahead is: 1) work towards meeting or exceeding the SSM targets; 2) aid the NPL reduction process through new plans under way already (such as the Asset Protection Scheme); and 3) support the P&L through a gradual step up in new lending and lower costs. The substantial improvement in liquidity (no signs of panic, despite the turmoil) should avert regulatory actions over capital, in our view. Although our call on the Greek banks is highly speculative and risky, we maintain our opinion that they are likely to avoid distressed capital issues. In this volatile environment, we believe that Eurobank (BUY, PT EUR 1.0/share) stands out, with its strong NPE coverage ratio, clear path to lowering arrears and P&L stability.
Eurobank Ergasias and its subsidiaries are organized in the following reportable segments: Retail. which incorporates customer current accounts, savings, deposits and investment savings products, credit and debit cards, consumer loans, small business banking and mortgages; Corporate, which incorporates direct debit facilities, current accounts, deposits, overdrafts, loan and other credit facilities, foreign currency and derivative products; Wealth Management, which incorporates private banking services; Global and Capital Markets, which incorporates investment banking services; and International, which incorporates operations in Romania, Bulgaria, Serbia, Cyprus, Ukraine and Luxembourg.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.