Bank of Greece Financial Stability Review: banks' first half of 2026 (October 2026)
Greek banking groups earned €2.6bn after tax in the first half of 2026, up 3.8%, while the CET1 ratio eased to 14.8% and the NPL ratio edged up to 3.4%, the Bank of Greece says.
Key figures#
| Indicator | Latest | Period | Source |
|---|---|---|---|
| Profit after tax and discontinued operations, Greek banking groups | €2.6bn (+3.8% y/y) | H1 2026 | BoG press release, 22 Oct 2026 |
| CET1 ratio, consolidated | 14.8% (Dec 2025: 15.4%) | Jun 2026 | Same |
| Total capital ratio | 19.6% (Dec 2025: 19.8%) | Jun 2026 | Same |
| NPL ratio, solo basis | 3.4% (Dec 2025: 3.3%) | Jun 2026 | Same |
| NPL stock, solo basis | €6.2bn (+9.3% vs Dec 2025) | Jun 2026 | FSR executive summary (PDF) |
| Liquidity Coverage Ratio / Net Stable Funding Ratio | 197.8% / 134.7% | Jun 2026 | Same |
| Return on assets / return on equity | 1.3% / 12.1% | H1 2026 | Same |
| Exposures managed by credit servicers | €91.3bn | Jun 2026 | Same |
The Bank of Greece (BoG) published the executive summary of its twice-yearly Financial Stability Review on 22 October 2026. It covers the banking sector's first half of 2026, as well as insurers, credit servicers, payment institutions and market infrastructure. All figures below come from that summary and the accompanying press release.
Profits: core income up, provisions down#
Greek banking groups earned €2.6bn after tax and discontinued operations in the first half of 2026, 3.8% more than a year earlier. According to the BoG:
- Income. Operating income rose 6.8%. Net interest income grew 5.6%, helped by credit growth and larger holdings of foreign government bonds, and net fee and commission income rose 18.5%. Together, core operating income grew 8.3%.
- Costs and provisions. Operating costs rose 9.3%, gains from financial operations fell, and loan-loss provisions dropped 27.8%.
- Returns. Return on assets was 1.3% and return on equity 12.1%.
Capital and asset quality#
The consolidated CET1 ratio fell to 14.8% in June 2026 from 15.4% in December 2025, while the total capital ratio slipped only to 19.6% from 19.8%. The BoG attributes the gap between the two moves to issues of capital instruments that count as own funds but not as CET1. Deferred tax credits made up 36.0% of CET1 capital in June 2026, down from 39.7% in December 2025, as a voluntary amortisation plan speeds up their run-off.
Asset quality "deteriorated slightly", in the BoG's words. The solo NPL stock rose 9.3% in six months to €6.2bn, mainly because of net new inflows of non-performing loans. The NPL ratio moved to 3.4% from 3.3%.
Buffers and borrower rules#
- Countercyclical buffer. The 0.5% rate set in October 2025 has applied since 1 October 2026. The BoG assessed cyclical risks as low during 2026 and left it unchanged. It sees emerging risks in corporate credit, house prices and the current account, but no excessive credit growth overall.
- O-SII buffers for 2027. 1.25% for Eurobank, and 1.00% for Alpha Bank, National Bank of Greece and Piraeus Bank.
- Mortgage limits. Loan-to-value caps at origination remain 90% for first-time buyers and 80% for other borrowers, with debt-service-to-income caps of 50% and 40%. These rules matter for the housing demand discussed in our residential property overview.
Risks the BoG flags#
The review names geopolitical tensions in the Middle East and higher energy prices, the risk of a sharp repricing of assets given high valuations and concentration in technology and AI stocks, rising global government bond yields, and frontier AI models as a possible systemic risk through cyber threats and reliance on a few providers. It still calls the outlook for the Greek economy "favourable" and says banks are better placed than in the past to absorb shocks.
The review has two special features: one on the European Commission's July 2026 communication on banking competitiveness, the other on supervising AI under the EU AI Act.
Beyond the banks#
- Credit servicers managed €91.3bn of exposures in June 2026; 84.7% were non-performing. A new Ministry of Economy and Finance framework for private debt and servicers is in public consultation.
- Payments. Payment institutions handled €68.5bn of transactions in the year to June 2026 (+7.2%) and e-money institutions €12.3bn (+35.1%). Transfers through the IRIS instant-payment service rose 54% in the first half.
Context#
Banks make up a large part of the Athens market; see the credit ratings and analyst targets note and the capital markets note. The BoG's Note on the Greek economy of 23 October 2026 (PDF) restates its September growth and inflation projections, which sit in the forecasts tracker. The fiscal backdrop is in the public finances note, and wider data in the Greek macro snapshot.