The Greek banking market has left behind the stage of spectacular recovery and, as JP Morgan points out in its new report, is now entering a maturing phase. The third quarter results are not expected to hold any surprises, as fundamentals remain strong and the market has already discounted exceeding annual targets.

The emphasis, according to the US House, is now shifting to two new areas: bancassurance movements, i.e., strategic partnerships between banks and insurance companies, and dividend distribution policies, which are gradually taking on a central role in shaping valuations. JP Morgan maintains an ‘overweight’ recommendation on all Greek banks, but stresses that the rise in their shares is largely discounted.

Greek banks, trading at a 2027 price-to-earnings ratio of 7.6 times and a price-to-tangible book value ratio of 1.1 times, for an average return on equity (RoTE) of 15.2%, a level that few European banks currently achieve.

The target prices are for Alpha Bank: €4.10, for Eurobank: €4.10, for National Bank: €15.00 and for Piraeus Bank: €9.00.