The next stop for investors is London, where the Morgan Stanley conference will be held. The conference is organized together with the Stock Exchange, on November 27 and 28, in the presence of Prime Minister Kyriakos Mitsotakis.
The agenda of the conference has three sections and it is expected to determine the investors’ attitude towards the banking sector in the next period of time.
Dividend distribution
As most of the financial institutions have acquired bank shares, what they will discuss extensively with the banks is the dividend distribution. Of course, banks cannot know in depth the intentions of the institutions.
The two issues that are always a problem regarding dividends are:
The high deferred tax, and
The MREL
As for the first part, the issue seems to be addressed mainly through the high profits of credit institutions. The issue of MRELs is being addressed by accelerating the releases. More specifically, the banks must faithfully follow the issuance schedule mainly because they have already received a time extension compared to the other European banks until 1.1.26.
The big issue of deferred tax continues to plague the quality of credit institutions’ otherwise buoyant capital.
Returns on Equity
The second important issue for banks is equity returns, which also largely determine the placements of foreign investors.
Interest income
The third important issue is the income from interest which will be examined in combination with the credit expansion and bad loans.
Greek banks’ outlook is positive, according to S&P Global Ratings, since it focuses on various factors that affect the market and the economy. The high demand in various sectors such as tourism and investments along with the reduction of unemployment are enhancing economic growth and the prospect of an increase in loans.
According to S&P, the future seems promising with the prospect of bank dividends and Financial Stability Fund share sales likely to affect bank ‘ownership’.
Overall. the developments shape a positive image for the Greek banking sector in 2025.
