Bloomberg reports that Greece’s four systemic banks (Alpha Bank, Piraeus Bank, National Bank of Greece and Eurobank) have passed the ECB stress test and all lenders have kept a common equity Tier 1 capital ratio above the legal minimum of 4.5% in the adverse scenario.
Piraeus Bank CET1 stood at 5.9% in adverse scenario, 14.52% in baseline scenario
National Bank of Greece CET1 stood at 6.92% in adverse scenario, 15.99% in baseline scenario
Eurobank Ergasias CET1 stood at 6.75% in adverse scenario, 16.56% in baseline scenario
Alpha Bank CET1 stood at 9.69% in adverse scenario, 20.37% in baseline scenario
Greek lenders are up around 10% since our recommendation in December, and should have much more room to run, now that the forced capital raise is no longer a risk.