8.6% of profitability Greek banking groups entered in 2022 from abroad, as profit before tax was 380 million euros out of a total of 4.5 billion euros, which was profitability banking system last year. Profitability from foreign activities is mainly divided into Eurobank by 224 million euros, approximately 70 million euros in Alfa Bank and 59 million euros in National Bank.

Profitability of subsidiaries and branches of the bank abroad increased significantly, according to data included in the Financial Stability Report TTE. Subsidiaries in Cyprus and Bulgaria have made a large contribution, while activities in Egypt, North Macedonia (markets in which the National Bank operates), Romania (the main export market for Alpha Bank) and Luxembourg, where the group operates, have contributed less to Eurobank.

The assets of Greek banks abroad in December 2022 reached 35 billion euros.

In particular, Cyprus is a country in which all three systemically important banks operate – Eurobank, Alfa and Ethniki, and the main reason for the growth in profitability was the recovery of a loss recorded in 2021 by its subsidiary in Cyprus, Alfa Bank . At the end of 2022, the group signed an agreement with a company associated with Cerberus Capital Management to sell a portfolio of NPLs totaling EUR 2.3 billion (Sky project), thus completing the consolidation of its subsidiary. .

Cyprus is a stable source of income for the Eurobank with a net profit of over 37 million euros in 2022. According to the Central Bank, the assets of all three Greek groups in Cyprus reach 12.2 billion euros, with the Eurobank holding the largest share with assets of 8.8 billion euros in 2022. In addition to its subsidiary in Cyprus, the group also proceeded to acquire 30% of Hellenic Bank.

In 2022, Greek banking groups have continued to streamline their international presence by focusing on markets they consider strategically important. In this context, Alpha Bank withdrew from the Albanian market by selling its activities in the neighboring country to the Hungarian OTP Bank, and Eurobank, in addition to strengthening its participation in Hellenic Bank in Cyprus, reached an agreement to acquire BNP. Paribas Personal Finance Bulgaria. At the same time, during 2023, he agreed to the sale of Eurobank to Direktna, leaving the Serbian market, which was also the group’s least profitable activity.

Greek bank assets abroad in December 2022 amounted to 35 billion euros, up 2.4% compared to December 2021, while the share of international activities in total assets on a consolidated basis increased slightly to 10.8% at the end of 2022. geographical distribution, South East Europe represents 84.2% of the total assets of international activities, with a major presence in Cyprus and Bulgaria.

Financial centers namely Luxembourg, the UK and Germany account for 15.1%, with Luxembourg having the largest presence. The share of SE Europe (where the largest number of service divisions and personnel is concentrated) in foreign deposits and loans is even higher (90.6% and 84.6%, respectively).