Greek banks remain resilient – Alarm over war repercussions

The Greek banking sector is underpinned by sound fundamentals and it has also strengthened its resilience to potential shocks, Bank of Greece said in its Financial Stability Report.

Risks to financial stability in Greece, as identified by the central bank, are linked to rising international energy prices, heightened uncertainty stemming from geopolitical conflicts, and the potential for an abrupt repricing of assets in global capital markets.

The Financial Stability Report, published semi-annually, reviews developments in the macroeconomic and financial environment, assesses risks and the resilience of the banking sector, insurance undertakings, and other segments of the financial system, and analyzes the functioning of financial market infrastructures (payment systems, central securities depositories, and central counterparties).

Bank profits reach 4.7 billion euros in 2025

According to the Bank of Greece, Greek banking groups recorded profits after tax and discontinued operations of 4.7 billion euros in 2025, compared with 4.2 billion in 2024. This performance was supported by increased income from non-interest activities and a reduction in provisions for credit risk. Offsetting factors included lower income from financial operations and higher operating expenses, primarily due to increased administrative costs.

Positive outlook – caution over Middle East developments

The outlook for the banking sector remains positive, as strong fundamentals act as a buffer against heightened uncertainty and external risks.

However, the Bank of Greece warns that a prolonged conflict in the Middle East could adversely affect the financial position of businesses and households in Greece, as well as the quality of banks’ loan portfolios and the achievement of their credit expansion targets.

“Further strengthening of the financial system remains a priority, and vigilance from all stakeholders is essential,” the central bank emphasized.

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