Greek Banks Benefit from Sector Reforms, J.P. Morgan Forecasts EPS Growth

Greek banks are poised for renewed investor interest, driven by sector-specific reforms, improved financial metrics, and strategic inclusion in key European equity indices. J.P. Morgan forecasts a 12% annual increase in earnings per share (EPS) from 2025 to 2028, reflecting structural improvements in profitability and risk management. The banks’ non-performing loan ratios have fallen to 2%–3%, down from over 50% during Greece’s 2010s financial crisis, while return on assets stands at 1.3%—higher than the euro area average of 0.6%. Deposit stability is also stronger, with about 80% of liabilities coming from retail deposits, compared to the euro area’s 52%, and loan-to-deposit ratios near 60%, indicating a resilient funding base.