Greek Economy Expected to Outperform European Growth

The Greek economy remained resilient through multiple crises and is expected to maintain growth above the European average in the coming years, Piraeus Bank CEO Christos Megalou said during an interview with Bloomberg Television.

Speaking about the bank’s new Strategic Plan 2026–2030, Megalou acknowledged that markets were experiencing volatility due to the situation in the Middle East, with energy prices trending upward. However, he said it remained impossible to predict how long the instability would last.

Megalou noted that Greece had endured several major crises in recent years, beginning with the Eurozone debt crisis, followed by the COVID-19 pandemic and the war in Ukraine.

He explained that the conflict in Ukraine created dynamics similar to those seen today, describing them as a “supply shock”, yet Greece managed to withstand the pressure.

Shipping Finance Faces Uncertainty

Asked about shipping finance — a sector significantly affected by the current global climate — Megalou said the period was challenging for risk pricing.

“In our shipping portfolio, the loan-to-value ratio is below 50%, which gives us a strong starting point,” he said.

He also pointed to the mixed impact of the current crisis. While energy prices had risen, freight rates had increased as well.

“If you lend prudently, you are in a better position to withstand shocks,” Megalou said. After reviewing the bank’s portfolio and overall shipping loans, he added that he was not particularly concerned unless the crisis continued for a very long time.

New Strategic Focus on Insurance and Wealth Management

Megalou highlighted the diversification of the bank’s revenue sources under the Strategic Plan 2026-2030, which emphasises expansion in the insurance sector and growth in Wealth and Asset Management.

“These are two key growth drivers alongside credit expansion,” he said.

He also outlined plans targeting younger consumers who are familiar with digital technology. The bank has created the neobank Snappi, which will expand in Greece and internationally over the coming years.

Athens Exchange Move Seen as Positive Development

Megalou described the potential acquisition of the Athens Stock Exchange by Euronext as a highly positive step.

He said the move would integrate the exchange into a regional cluster of stock markets, opening opportunities for investment banking development at a regional level rather than purely local.

According to Megalou, the development could also support Greece’s transition toward developed markets.

MSCI Upgrade Could Increase Market Activity

The CEO also said that the anticipated upgrade of Greece’s capital market by MSCI to developed market status at the end of March would significantly boost trading volumes.

He noted that daily trading volumes in Piraeus Bank shares already ranged between €80 million and €100 million — levels that would have been unimaginable only a few years ago.

Megalou said he expected trading activity to increase further once the Athens Stock Exchange officially entered the developed markets category.

Bank Not Seeking Foreign Takeover

Asked whether he would welcome a merger or acquisition by a foreign bank, Megalou emphasised that Piraeus Bank’s management had consistently delivered on its commitments in recent years.

He said the bank’s five-year business plan targeted annual earnings per share growth of 10%, a goal that he believes will attract investors.

“We are here to create value for our shareholders,” Megalou said. “Our shareholders have been very satisfied in recent years, and I believe they will be even more satisfied over the next five years.”

He concluded by saying that the bank was not actively seeking a takeover, though he acknowledged that Piraeus Bank represented a highly attractive proposition for potential investors.