Greek Banks Dominate European Rankings as UBS Highlights Piraeus Bank’s Investment Appeal

Eurobank and National Bank of Greece (NBG) have emerged at the top of European banking rankings for return on equity, according to a pan-European report by UBS, underscoring the sustained profitability and resilience of the Greek banking sector. The findings, shared by Greek business outlet Newmoney, place both Eurobank and NBG firmly in the upper echelons of the European ranking for return on equity, reflecting gains that are “not a cyclical phenomenon but is instead the result of a steady improvement in asset quality and cost control.”

Within the broader European landscape mapped by UBS, Piraeus Bank is identified as the institution that most clearly exemplifies the new normal in Greek banking. This “normality” is defined by high organic profitability, robust capital generation, and a funding model that delivers returns even in a low interest rate environment. UBS assigns Piraeus Bank a target price of €9.20, ranking it among its top investment picks for 2026. The investment bank justified this recommendation by highlighting Piraeus Bank’s combination of a return on equity stabilizing at 15 percentage points, “exemplary cost control,” and a deposit balance that provides a distinct advantage in funding costs.

The UBS report also places Piraeus Bank at the forefront in Europe regarding cash flow dynamics and capital strengthening, noting that the bank’s price-to-net worth ratio and projected earnings position it among the most attractive valuations in the sector. Alpha Bank, meanwhile, contributes to elevating the overall Greek banking average, demonstrating cash flow performance that exceeds many Western European peers. The report emphasizes that recent acquisitions give Alpha Bank a “distinct developmental character,” further enhancing its profile.

While all four major Greek banking groups are portrayed as reinforcing the credibility of Greece’s financial system, UBS identifies Piraeus Bank as the institution that combines valuation, momentum, and outlook most effectively, justifying its place among Europe’s top investment stocks for 2026. The report underscores the structural improvements in asset quality, cost management, and capital generation that have propelled Greek banks into leading positions within Europe, marking a clear departure from past volatility and positioning them as benchmarks of sustained profitability.

By fLEXI tEAM