Banks Revise Annual Credit Expansion Target Upwards by €1.5 Billion

Greek banks have revised their annual credit expansion target for 2025 upwards by €1.5 billion, following a robust performance in the first half of the year, during which total new loans reached €7.4 billion. This surge was largely driven by the accelerated pace of lending between April and June 2025.

This means that banks have already achieved over 70% of their initial annual target, prompting expectations for an additional €4.3 billion in new credit during the second half of the year.

However, the second half is expected to show slightly lower net figures due to the typical year-end pattern of early repayments, which tend to offset gross disbursements.

Breakdown by Bank

• Alpha Bank: Achieved €1.5 billion in new loans during H1. The bank now expects total annual credit expansion to exceed €2.2 billion, a target considered conservative.
• Eurobank: Increased its loan portfolio by €2.2 billion in H1 and has now revised its full-year target to €4 billion, up from a previous goal of €3.5 billion.
• National Bank of Greece (NBG): Grew its loan book by €1.5 billion by end-June. Management now forecasts total credit expansion of €2.5 billion for 2025, compared to an initial target of €2 billion.
• Piraeus Bank: Recorded a €2.2 billion increase in credit during H1, and now expects to close the year with a net increase of €3 billion, up from the original estimate of €2.5 billion.

Business Lending Takes the Lead

According to bank executives, this year’s performance is once again being driven by business lending, bolstered by development programs that continue to accelerate disbursements quarter over quarter.

Notably, a large number of Recovery and Resilience Facility (RRF)-backed projects have entered the implementation phase, and companies have started drawing down the approved loan amounts.

Retail Lending Recovery Underway

Although retail lending remains in slightly negative territory, banks expect a return to growth over the coming quarters. Consumer credit continues to expand, while new mortgage disbursements are up year-on-year, heading towards a 10-year high.

Interest Rate Decline Offers Further Support

The recent decline in interest rates, along with a reduction in lending spreads, is expected to further support loan growth.

Despite the drop in Euribor rates — from around 4% in 2024 to 2% in mid-2025 — net interest income for the sector fell by just 2.4% year-on-year in H1. Analysts say this shows that banks’ strategic plans are paying off, laying the groundwork for a new growth cycle starting in 2026.

Source: pagenews.gr