Stay on board – Greek stocks have had a rather muted summer (ASE +4.7% in July, -1.6% in August), as the prospect for higher-for-longer rates fanned worries about the global economy, leading to widening equity risk premia amidst poorer liquidity conditions given the low seasonality. With Greek stocks already up 35% ytd (banks +55%), the short-term risk-reward looks symmetrical as the fragile international sentiment is balanced with the strong domestic fundamentals, attractive valuations and posi...
Stay on board – Greek stocks have had a rather muted summer (ASE +4.7% in July, -1.6% in August), as the prospect for higher-for-longer rates fanned worries about the global economy, leading to widening equity risk premia amidst poorer liquidity conditions given the low seasonality. With Greek stocks already up 35% ytd (banks +55%), the short-term risk-reward looks symmetrical as the fragile international sentiment is balanced with the strong domestic fundamentals, attractive valuations and posi...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
New strategic plans: faster clean-up while maintaining capital buffers… - As expected, all banks opted to accelerate their clean-up efforts targeting single digit NPE ratios over the next 12 months on the back of ca € 25bn NPE transactions, something which makes their plans quite reliable. Banks’ projections suggest that regulatory capital will remain comfortably above regulatory requirements, with average CET 1 ratio shaping at c14% at sector level in 2022 on a post clean-up basis. …bringing ...
Strategy update – Piraeus Bank management announced a new business plan aiming at rendering the group clean and profitable within a few years’ time, targeting a RoTE in excess of 10% in the medium term. The plan includes three key pillars: i) a more ambitious de-risking plan envisaging a medium term NPE ratio of
In our latest update note on Greek banks we outline and discuss the government’s effort to revive the real estate market, the likely implementation of the Asset Protection Scheme to support NPE reduction and the full lift of capital controls after four years. We are of the view that the aforementioned initiatives will facilitate NPE reduction and will have an overall positive impact on banks’ fundamentals thereby leading valuations at higher levels, assuming that international markets remain...
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