Bank of Greece, the four systemic banks, SRB and SSM seem to have agreed upon a dividend distribution of 15%-25% during their meeting.
More specifically, SSM seems to have approved the distribution of dividends under conditions for 2023. However, the matter will be closed definitively later in the year.
Among the conditions set are the continuation of profitability, the satisfactory capital position of banks and discipline on the critical issue of NPEs.
Among the goals are the full privatization of systemic banks by 2024, the limitation of NPEs and the achievement of MREL targets.
The Greek banking sector is on a steady trajectory of convergence with European banks and has now become an investment target. Greek banks have achieved stable organic profits while having one of the best liquidity ratios in Europe.
Bank liquidity continued to improve in 2023. Deposit growth together with issuances keep liquidity at high levels, despite the significant repayments to the ECB that took place last year.
However, bank ratings are still below investment grade. There are several reasons for this, the most basic perhaps being the fact that when the Greek State did not have the investment grade, the banks had a significant amount of Greek State bonds in their assets.
Banks now aim for overall balance sheet liquidation and deleveraging of their non-core assets, continued return on equity, and strong profitability.
During the bilateral discussion, the developments in relation to NPEs, the Hercules program, out-of-court issues and auctions were also examined.
Present at the meeting from the SRB side were Mr. Laboureix, Saurina, Dominguez. On the SSM side, Mr. Buch, and Rimarchi.
On the part of the banks, Mr. Hardouvelis and Apalagaki (Union) and Mr. Karavias, Mylonas, Megalou, Psaltis and Vretto.
A meeting with the administration of the Bank of Greece (BoG) was held earlier.
According to an announcement by the Bank of Greece, the President of the Single Resolution Board (SRB) Dominique Laboureix and the President of the Supervisory Board of the European Central Bank (SSM) Claudia Buch pay a two-day visit to Athens and the Bank of Greece on Thursday, January 11 and Friday, January 12.
The heads of the two European institutions also met with Bank of Greece governor Yannis Stournaras and executives of the Bank of Greece’s administration. As part of their visit to the Bank of Greece, the heads of the two European supervisory authorities will also meet with representatives from the managements of Greek banks and the Hellenic Banking Union. They will also have contacts with the Greek government.
The agenda of the discussions includes, among other things, the current situation and prospects of Greek banks, as well as matters of supervisory interest and cooperation between the two European institutions and the Bank of Greece.
