Greek Banks: heading for a bumper year (Alpha Bank, Eurobank, NBG and Piraeus Bank stay BUY)
The Greek banks are up 32% ytd, outperforming the European banking index (SX7E +19% ytd). The valuation gap has narrowed, but the Greek banks, in our view, are still not fully priced. On average, the Greek banks trade at a P/E of c.6x on our 2023E (a discount of c.25% vs. their peers) and a P/TBV of 0.6x (a discount of c.10%). In view of the strong Greek macro story, the positive impact from the rate hikes, the healthy corporate loan growth and the benign asset quality trends, we expect the Greek banks to continue this outperformance. We remain BUYers of all the banks, but set Alpha Bank (new price target (PT) at EUR 1.80) and Piraeus Bank (new PT at EUR 3.40) as our top picks, due to their steeper discounts vs. their peers.
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.
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