30.9 C
Sunday, June 20, 2021

The "red" loans of the crisis are manageable by the banks


Conscious markets in the Municipal Market of Kypseli

The 1st Conscious Pop up Market in Kypseli The opportunity for Athenian consumers to get in touch with products that have been created with the authorities ...

"Project Athena": Innovation and technology at the service of the Municipality of Athens, for a clean and accessible city

Microsoft and ATCOM are implementing a pioneering pilot project under the "Adopt Your City" initiative. The evolution of cities into "smart" through technology ...

"Culture is Athens": 4 venues, more than 100 events

Culture is Athens / June - September 2021 Technopolis - Kolonos Theater - Gravas Theater - AB Cinema Music - Theater - Dance The lights of culture "turn on" again and the Municipality of Athens offers a summer ...

A multicultural path in Rozan Park in Exarchia

Meet the tribes of Athens An emerging outdoor exhibition with 5 wooden installation boxes, which highlight the traditions of different cultures through art, music, food and ...

A walk to the Industrial Museum of Gas in Technopolis, with a backpack

The successful interactive tour "A walk in the Museum with a backpack" for families with children aged 4-11 takes place again at the Industrial Gas Museum in ...

The announcement of the banks' results for the first quarter of 2021 shows a small increase in new non-performing loans, despite the crisis caused by the pandemic.

As the debt suspension period ends, a positive development for the banks, but also for the economy in general is the lower than expected formation of new NPEs.

In fact, according to JP Morgan regarding the possible inflows of non-performing exposures (NPEs), in total, the absolute amounts amount to about 4,2 billion euros for the four banks, much lower than the 8-10 billion euros of NPEs that At the moment, the Bank of Greece expects that they will be created by this crisis.

For Eurobank, total NPEs fell to 5,8 billion from 13 billion euros in the first quarter of 2020, while they recorded a relatively small increase of 117 million euros compared to the fourth quarter of 2020. This increase was significantly lower than as expected, as well as the formation of new non-performing exposures amounting to EUR 72 million.

The new "red" loans of Piraeus were 200 million and the reduction of the non-performing exposure stock (NPEs) continued during the Covid-19 crisis. NPEs fell to € 22,1 billion at the end of March 2021 from € 24,1 billion a year earlier and € 22,5 billion at the end of December 2020.

Alpha Bank announced that Non-Performing Exposures in Greece remained unchanged, as the regular servicing of loans and repayments that continued in the first quarter of 2021, offset the inflows.

At the end of March 2021, the Non-performing Exposure Index in Greece stood at 23,9% after the Galaxy transaction, while at group level it amounts to 26,3%.

Arrears in Greece amounted to 4,9 billion euros. With the completion of the Galaxy transaction, the Delay Ratio in Greece decreases to 13,3%.

The "Hercules" plan

The "Hercules" plan is the leading forward-looking reform of the Greek government, aimed at radically reducing red loans. This plan was implemented in record times for our country in relation to any other reform, with the mass participation of all four Greek systemic banks and within the first year of its operation a reduction of 40% of the red loans of Greek banks was achieved.

With "Hercules 2" which was very recently approved by the Commission (and while in "Hercules 1" the red loans were reduced by 32 billion euros), it is planned within the next 18 months to reduce by another 32 billion euros the remaining loans.

Bankers estimate that as early as 2021 and certainly in 2022, most Greek banks will have reduced the rates of "red" loans to single digits and very close to the European average.

The "Hercules" plan is an important systemic solution and which has led to positive results. All systemic banks have already joined it, attracting international investors, with a total gross securitization value of 31,3 billion euros.

In addition, and very importantly, "Hercules" was the catalyst that led to the recent upgrades by rating agencies.

Following the upgrade of Greek banks by S&P, the rating agency Fitch confirms its positive outlook.

According to Fitch, the additional securitization of loans under "Hercules 2" will be an important step in the consolidation of portfolios.

Thus, these securitizations, along with other initiatives, are expected to reduce the "red" loans of banks below 15% in the next 12 months, from about 35% at the end of 2020.

With the moves prepared by the banks, it is possible to reduce the NPEs index below 15% in the next twelve months compared to 35% at the end of 2020. Previously, the house expected the index to fall below 30% by the end of 2021, calculating but only the securitizations of Hercules I.

In its calculations, Fitch takes into account the creation of new "red" loans from the pandemic. The four banks had moratorium loans, which amounted to 16% of the portfolio at the end of 2020, but for most of them the period of suspension of payments has expired. With restructuring and the use of state support schemes, the pressures from this front are easing.

Target prices

International investment houses, after the announcement of the results of the banks, upgrade the target prices for the banking shares.

Wood sets the target price for the share of Alpha Bank at 1,50 euros and predicts that the Non-performing Exposure Index will fall sharply to 7% in 2022 and further to 2% by 2024. KBW notes that the new strategic plan makes Alpha Bank attractive to investors.

KBW "sees" a single-digit index of Non-performing Exposures close to 5% by 2022. NBG Securities considers attractive the levels at which the share of Alpha Bank is traded, giving a target price of 1,30 euros.

JP Morgan gives a target price of 2 euros per share, which offers a significant margin of rise from current levels of 35%.

Following the capital increase, the bank is ready to bring the non-performing NPEs exposure to single digits by the beginning of 2022 from the current 14%. HSBC raises the target price to 1,70 euros or an increase of 10% from current levels.

Eurobank Equities for Piraeus speaks of an ambitious but credible plan to reduce red loans, setting a target price of 1,91 euros and a "hold" recommendation. Axia Research notes that Piraeus Bank is now on a very good path for the implementation of its business plan and gives a buy recommendation for the share with a target price of 2,15 euros.

Source: RES-EAP

France - Regional elections: The far right has the upper hand due to abstention

The far right in pole position, in view of a record abstention: the French are voting, today, less than a year before the presidential elections, for the first ...

Over 100.000 checks and fines of 221.300 euros for non-compliance with sanitary measures

The competent audit services (EL.AS, Coast Guard, EAD, DIMEA, SEPE, Regions and Municipal Police) carried out on Saturday 19.06.2021 a total of 102.848 inspections and recorded 247 ...

News bulletin at 15:00

He organizes his defense tactics by the Security, where the 33-year-old confessed perpetrator of the murder of his 20-year-old wife remains imprisoned, in ...

Freshwater Crime: The 33-year-old pilot organizes his defensive tactics - What penalties are provided

His defensive tactics are organized by the Security, where the 33-year-old pilot remains detained, who after his shocking confession, is now waiting for ...

M. Tsavousoglou: Greece to stop the challenges

"Greece must stop the challenges and avoid a new escalation, in order for the Athens-Ankara relations to develop further", said the Turkish Foreign Minister, Mevlüt ...

Russia: Workers who refuse to be vaccinated will be available

The workers, who will refuse to be vaccinated against Covid-19 in the areas where it is mandatory, will be able to be made available, the minister announced ...

How supermarkets, shops and banks of the Holy Spirit will operate

Shops and supermarkets will be open on Monday of the Holy Spirit, June 21, 2021, while their opening hours will be the same ...


Sunday cleaning business in Ano Kypseli

In one of the most densely populated neighborhoods of the city, Ano Kypseli, the cleaning team of the Municipality of Athens acted today. The employees of the Cleaning Department ...

Where are free coronavirus tests performed on Sunday 20/6

Today, Sunday, June 20, Mobile Health Teams (KOMY) of the National Organization of Public Health (EODY) will be located in 30 central locations throughout the country, ...

Birthday with reduced admission for the 12 years of operation of the Acropolis Museum

On Sunday, June 20, 2021, the Acropolis Museum closes its 12 years of operation, having gone through its most difficult year, after it remained closed ...

The key to the city of Tirana to the mayor of Athens, Costas Bakoyannis

The key to the city of Tirana was received today by the mayor of the Albanian capital Erion Veliai, the mayor of Athens Costas Bakogiannis, who is ...

Open House Athens returns in June with online tours

The city's favorite architectural festival could not fail to return this year, even online. The online event includes a livestream and ...