S&P took various positive rating actions on Greek Banks

Macro/Political
• The Overall Turnover Index in Retail Trade in November 2024 increased by 2% (y-o-y) and 2.4% (m-o-m). The Overall Volume Index in Retail Trade increased by 1.1% (y-o-y) and 2.9% (m-o-m).

Source: Elstat

• On Friday (31/01), S&P took several positive rating actions on Greek banks, citing a stronger institutional framework and improving capital quality. The agency stated that the enhanced ability of regulatory authorities to proactively address challenges in the Greek banking system, along with the sector’s consolidation, has reduced industrywide risks. S&P now assesses the institutional framework of the Greek banking industry as
being in line with that of most of its eurozone peers. In addition, the four leading Greek banks are demonstrating solid operating performance and are accelerating the amortization of deferred tax credits (DTCs) to enhance their capital quality.

As a result, S&P upgraded the long- and short-term issuer credit ratings of NBG and Eurobank to BBB- from BB+ with a stable outlook, affirmed Alpha Bank’s rating at BB+ with a stable outlook, and upgraded Piraeus Bank’s rating to BB+ from BB, also with a stable outlook.

Source: S&P

• On Friday (31/01) Piraeus Bank issued an announcement on Friday, informing that as part of its strategy to enhance shareholder value and
diversify its business model, it systematically evaluates potential investment opportunities that would contribute positively to its earnings and the efficiency of its capital structure. In this context, Piraeus is currently evaluating various potential investments in the asset management and insurance sectors, among which Ethniki General Insurance.

Source: athexgroup.gr

Macro/Political
• In January 2025, economic sentiment in Cyprus deteriorated slightly, as the Economic Sentiment Indicator (ESI-CypERC) decreased by 0.6 points (m-o-m). The decline was driven by weaker business confidence in the sectors of construction and industry, as well as by lower consumer confidence.

Source: UCY