The Athens Stock Exchange’s banking index has been at its highest level since November 2015, with the sector being the main “protagonist” (and) of this year’s course, having recorded a return of more than +47% since the beginning of the year.
The cumulative capitalization of the 5+2 banking stocks exceeds 40 billion euros, reflecting 31% of the value of all listed companies.
The strong financial figures, the resilient profitability of the first quarter, the expansion moves abroad and especially in Cyprus, the diversification of the portfolio with the addition of activities beyond the narrow banking sector, the attractive valuations compared to similar ones abroad and the stable macroeconomic framework of the country compose a dynamic “arsenal”, which is a pole of attraction.
More specifically, the banking index includes the shares of the four systemic banks and Optima Bank. All five are at multi-year highs, while the valuation ratios (P/E – P/BV) are still at a discount compared to the rest of Europe.
Eurobank, which has a valuation of over 10 billion euros sees its P/E at 7.1x and its P/BV at 1.1x, despite having been up +25% since the beginning of the year.
The same applies to Alpha (P/E at 8x and P/BV at 0.9x), which sees its share price rising by +84% by 2025 and its market capitalization exceeding 7 billion euros.
As for National Bank, which is worth 9.7 billion euros, the stock is trading at a P/E of 8.5x and a P/BV of 1.2x, despite gaining more than +39% this year.
Piraeus’ stock is trading at valuation ratios of 6.6x and 1x, while this year’s rally exceeds +57% and the stock market value jumps at 7.5 billion euros.
Less attractive seems to be the valuation of Optima, which after this year’s +54% and the climb to a record of 1.4 billion euros (20 euros/share), has a P/BV of 2.2x.
Beyond that, there are the shares of Bank of Cyprus and Attica Bank, worth 2.8 and 1.2 billion euros respectively, which are currently not included in the banking index.
The first gains more than +38% in 2025, barely missing the recent records of 6.6 euros/share and enjoying P/E ratios of 7.5x – P/BV of 1.1x.
The second, which is in the process of transforming into the fifth banking pole of the country, sees the share expand by +15% and is at 0.8 euros, that is, a “breath” from the highest levels of the new “era”.
