As interest rates decline, credit expansion has become the key driver of sustainable and resilient profitability for Greek banks. In the first half of 2025, the country’s four systemic lenders — Alpha Bank, Eurobank, National Bank of Greece, and Piraeus Bank — reported combined net profits of €2.4 billion, representing a 4% increase compared to the same period in 2024.
Over this period, the four banks collectively increased their stock of performing loans by approximately €7.7 billion, significantly expanding their revenue base. Net credit growth in the first half of 2025 was as follows:
- Eurobank: €2.2 billion (+11%)
- National Bank of Greece: €1.5 billion (+12%)
- Piraeus Bank: €2.2 billion (+15%)
- Alpha Bank: €1.8 billion (+14%)
Originally, Greek bank executives had set a target of at least €10 billion in new loan disbursements for 2025, as communicated to major international investment firms in late 2024. However, based on their strong performance in the first half of the year, these targets have been revised upwards. The new projections now place total lending for the year at around €13 billion.
International analysts attribute this momentum to Greece’s broader recovery narrative and the notable rise in corporate borrowing.
Central Bank Confirms Lending Momentum
Data from the Bank of Greece reinforces this trend. In April 2025, the annual growth rate of credit to non-financial corporations (NFCs) reached 17.2%, the highest level since early 2009. This was largely driven by co-financing and guarantee schemes from development institutions, as well as bank loans linked to investment projects under the EU Recovery and Resilience Facility (RRF).
Looking ahead, the expected increase in Greece’s GDP in 2025 is projected to further support loan demand, particularly in the business sector. Additionally, the transmission of European Central Bank policy rate cuts to retail lending rates is anticipated to further stimulate credit expansion.
Disbursements under the RRF are expected to accelerate in 2025–2026, contributing to stronger credit flows to businesses. This is supported by:
A pipeline of already contracted loans pending disbursement, and
The anticipated signing of additional loan agreements as the program nears its conclusion.
Further support will come from financing programs managed by the European Investment Bank Group within the EU Structural Funds 2021–2027 (ESPA) framework, as well as from initiatives led by the Hellenic Development Bank.
2024: A Landmark Year for Lending
Credit expansion in 2024 exceeded all expectations, with the four systemic banks increasing their performing loan portfolios by a total of €13.8 billion — the strongest performance in over 15 years, compared to just €5.8 billion in 2023.
Breakdown of net credit expansion in 2024 vs. 2023:
- Eurobank: €3.9 billion (up from €1.8 billion)
- National Bank of Greece: €3.1 billion (up from €1.3 billion)
- Piraeus Bank: €3.6 billion (up from €1.5 billion)
- Alpha Bank: €3.2 billion (up from €1.2 billion)
According to the Bank of Greece, total credit to the private sector grew by approximately 9% in 2024. This includes:
- +13.8% growth in credit to non-financial corporations
- +0.7% growth in credit to self-employed professionals, farmers, and sole proprietors
- +6.3% growth in consumer lending
- -2.6% contraction in mortgage lending
Originally, Greek bank executives had set a target of at least €10 billion in new loan disbursements for 2025, as communicated to major international investment firms in late 2024. However, based on their strong performance in the first half of the year, these targets have been revised upwards. The new projections now place total lending for the year at around €13 billion.
International analysts attribute this momentum to Greece’s broader recovery narrative and the notable rise in corporate borrowing.
