Banks see rates staying high
Greek banks estimate that interest rates will remain high, namely between 2.7% and 3% in 2024-2026, keeping interest income at high levels for the following years as well.
Interest income increased by 51% to 8.1 billion euros in 2023, contributing the bulk of organic revenue of €10.4 billion.
Based on the estimates of National Bank of Greece, the key ECB interest rate will decrease to 3% in 2024 from 4% today and to 2.25% by the end of 2026.
Alpha estimates the average level of the 3-month Euribor for 2024 at 3.5%, with a gradual decline thereafter to 2.6% in 2025 and to 2.4% in 2026.
Piraeus Bank foresees the average interest rate of the ECB at 3.75%, with a gradual reduction to 2.75% in 2025 and 2.5% in 2026, while Eurobank’s forecasts set the benchmark rate at 3.25% for 2024 and 2.75% in the next two years.
The net profits of the four systemic banks last year amounted to €3.6 billion, of which the highest performance with profits of more than €1.1 billion belonged to Eurobank, which derives a significant part of its organic revenues from its activities abroad.
