Roemer Capital Updates Hellenic Banks Coverage with New Insights and Initiates Coverage on Bank of Cyprus
ARoemer Capital is pleased to announce the release of its next research update on Hellenic banks coverage. This comprehensive report revisits the “Big 4” Hellenic banks – Alpha Bank, National Bank of Greece (NBG), Eurobank, and Piraeus Bank – and introduces an in-depth initiation of coverage on the Bank of Cyprus with a BUY recommendation and a target price of EUR 5.43.
Key findings in our report highlight significant resilience in net interest margin (NIM) outlooks, outperforming historical sensitivities. This insight leads to upgraded revenue estimates that surpass current consensus. Our analysis includes a detailed review of Cost of Equity (CoE) estimates, incorporating various factors like interest rate sensitivity, deferred tax credits (DTC), and share liquidity, contributing to a more precise valuation framework for Hellenic banks.
Key Projections:
- • Bank of Cyprus is expected to achieve a payout ratio of 60% by 2025.
- • For Alpha Bank, NBG, and Eurobank, we project 60% payout ratios by 2026.
- • 2024-2026 distributions are forecasted to exceed 30% of market capitalization across the sector.
“With Greek banks continuing to demonstrate resilience and strong fundamentals, we believe this sector offers significant opportunities for investors,” said Alex Kantarovich, Head of Research at Roemer Capital. “Our updated analysis reflects a deeper understanding of risk dynamics and a confident outlook for the coming years.”
With the recent technical overhang from the NBG placement resolved, we believe market attention will increasingly focus on the robust fundamentals and ongoing derisking efforts within the Hellenic banking sector. Our risk-adjusted target prices suggest compelling upside potential across all covered entities.