Greek Banks Pass ECB Stress Test

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.

Leave a Reply

Your email address will not be published. Required fields are marked *