Greek Banks a Buy Again Showing More Light Than Shade, HSBC Says
Thursday, August 30, 2018 10:38 AM
(Bloomberg) —
- Country is on the right path; trends in asset quality are improving in line with expectations, NPL sales pipeline and large corporate restructurings “appear to be strong”
- NOTE: Aug. 28, Greek Bank Chiefs Say They Can Handle Loss of ECB Waiver
- Cautions that operational profitability is under more pressure than thought, prompting analyst to cut profit estimates
- Still, despite top-line pressures, Greek banks should deliver healthy capital-adjusted returns post-restructuring
- Valuation now more appealing with market value down 30% since April highs
- Upgrades Eurobank (PT EU1.25), NBG (PT EU0.29) and Piraeus (PT EU3.20) to buy from hold
- Reiterates buy for Alpha bank (PT EU2.43)
