Can or bank index to be placed in the center of the ongoing folding of Stock Exchange of Athensbut that doesn’t mean investors should have any… complaints so far industry performance, which remains almost double the General Index.
Despite the down 8% relative to this year’s high of 1,349 (5/20 intrasession high), the sectoral index is still at higher level since November 2015 (more than 1,240 units), ensuring a return of +16% in 2024, +23% in 12 months and + 115% in 3 years.
The high profit (+ 38% in Q1 2024), the stability of the interest income, the healthy financial expansion (+ 2.6% in April), the low rate of new “red” loans ( single-digit rate of NPL) and of course , the return during the of dividends (875 million euros in 2024), after 16 years of drought, constitutes an ideal mixture, which can guarantee more improving bank valuations on the dashboard.
It is no coincidence that, despite the current folding, the cumulative market value of the four systemic banks was maintained at the level more than 22 billion euroswhile of course there remains the final phase of the disinvestment of the Financial Stability Fund of the National Bank (concerning 18% of the share capital), which is expected for the fall.
The performance of four banks
THE Eurobank, which is the most valuable company in the industry, with a market capitalization of 7.5 billion euros, about 7% away from the highest year of 2.2 euros. However, it still records 26% earnings through 2024 and 34% through 12 months, trading at a P/E multiple ratio of 5.6x.
At the same time, National Bank, with a value of €7.3bn and a P/E of 5.9x, it is also down 7% from its recent high (8.6%), folded back into the €8 range. Since the beginning of the year, however, it has offered a return of more than +25%, while the corresponding percentage in 12 months stands at +34%.
On his part, Piraeus Street, which is under the most severe pressure, which fell to 3.5 euros and 5 months low, 15% away from the peak of 4.2 euros, with the result that the total increase in 2024 now “cut” in the region of + 10% and in 12 months in the region of +20%. However, this weakness pushes the P/E ratio to an attractive 5.1x.
Finally, the Alpha Bank, which is the only one with zero change in the current year, corrected by 14% from this year’s peaks of 1.79 euros. This results in trading at a P/E ratio of just 5.9x.