Greece ranks 4th with the highest net interest margins, reflecting the strong interest profitability of Greek systemic banks in the first quarter.
Furthermore, Greek credit institutions rank 4th from the bottom – but close to the average – for their capital adequacy.
Greece has the highest non-performing loan (NPL) ratio among SSM countries for the first quarter of 2025.
The 4th largest interest rate margin
Greek systemic banks appear to have the fourth best performance in interest income among the Single Supervisory Mechanism (SSM) countries that participated in the survey.
Specifically, Greece closes the group pf the top four of SSM countries with the largest interest rate margin, which corresponds to 2.92% for the first quarter of 2025.
Capital adequacy
Greece ranks among the last countries but close to the average levels of the SSM countries for its capital adequacy.
Specifically, for the countries of the Single Supervisory Mechanism the total Common Equity Tier 1 (CET1) ratio was 16.05%, while the total capital adequacy ratio was 20.28%. For Greece, the CET 1 ratio is very close to the ratio of the Single Supervisory Mechanism (SSM) region and is 15.88% for the first quarter of 2025, while the total capital adequacy ratio is again very close to the SSM average and is 19.95%.
This, on the one hand, ranks the country very close to the SSM average, however, at a country level it comes fourth from the bottom, leaving behind Spain, Slovenia and France.
Portfolio quality
Despite strong profitability and satisfactory capital adequacy, Greece, according to available data, has the highest non-performing loan ratio among SSM countries in the first quarter of 2025, a picture that may change in the next measurement as in the second quarter Greek systemic banks recorded a decrease in this ratio.
Specifically, the overall Greek NPL ratio stands at 3.34%, while the corresponding ratio of the single supervisory mechanism stood at 2.24% in the first quarter of 2025, down 4 basis points compared to the previous quarter.
For individual sectors, the SSM non-performing loan ratio for loans to households remained relatively stable from 2.23% to 2.21%. Similarly, for loans to non-financial corporations (NFCs), the ratio stood at 3.48%, compared to 3.53% in the previous quarter.
