$10 Trillion in Assets “Grill” Greek Banks in New York

More than $10 trillion in assets under management (AUM) stood across the table from Greece’s systemic banks this week, during the Global Emerging Markets conferences hosted in New York by UBS and Citigroup.

Among the heavyweight institutional investors and asset managers attending were:

•  JPMorgan Asset Management
•  Lazard Asset Management LLC
•  Baron Capital Management Inc
•  Federated Hermes Inc
•  Van Eck Associates
•  Duquesne Family Office LLC
•  Millennium Partners
•  State Street Global Advisors
•  Alliance Bernstein LP
•  Lord Abbett & Co, …and many more major players.

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1. Dividends Take Center Stage

The number one priority for investors: dividend visibility and sustainability.

Institutional investors are pressing for:

• Clear 3-year outlooks on dividend distributions
• Assurances on stability, especially in today’s volatile global climate

💬 “Dividend yield is a core metric for valuing banks in a high-rate environment,” noted one fund manager.

2. Credit Expansion & Higher-Quality Portfolios

The second most pressing topic was the anticipated credit expansion in 2025:

• Loans could exceed €14 billion, fueled primarily by the EU Recovery & Resilience Facility (RRF)
• Banks are now focusing more on larger, well-structured SMEs with credible business plans

 3. Bank-Specific Concerns

Each bank faced tailored questions from analysts:

• Piraeus Bank: Focus on Ethniki Asfalistiki (National Insurance)
• Eurobank: International expansion strategies under scrutiny
• National Bank of Greece (NBG): Analysts questioned the possibility of new acquisitions and insurance sector synergies
• Alpha Bank: Ongoing relationship with UniCredit raised as a key topic

 4. Political Risk & Global Volatility

Analysts are increasingly concerned about:

• Domestic political developments in Greece
• Geopolitical uncertainty, which creates a moving target for long-term investments

 5. Sector Outlook: Strong Fundamentals, Cautious Optimism

Despite global headwinds, Greek banks are benefiting from:

• Robust balance sheets
• Strong earnings from high interest rates
• Attractive dividend yields, which help drive valuation

📊 Forecasts suggest dividend yields could remain above 6–7% over the medium term.

 Investor Questions in Focus: The Top 5

•  Dividend policy & sustainability
•  Domestic vs. international growth strategy
•  Credit risk management
•  Utilization of RRF funds & SME portfolio quality
•  Resilience to political/geopolitical shocks

Source: pagenews.gr