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As BofA points out, more work is needed in terms of cost management, especially as revenues could continue to fall.
Greek banks are facing enormous challenges, despite the progress made, warns Bank of America Merrill Lynch in a new report, pointing out that she has a negative attitude towards the company. industry. As she points out, there are still many obstacles preventing investors from becoming attractive badets.
As she points out, after her recent visit to Athens, following the agreement of the Eurogroup debt, Greek officials seemed more optimistic about the country's macroeconomic outlook. The IMF, for its part, pointed out in the article 4 report that there are "significant legacies of the crisis" that can "hinder faster growth", including the need for Improve the combination of fiscal policy, public sector governance and solving the problems of Greek banks
Looking at the price of Greek banks in recent times, the US bank notes that progress has been pisfaleion, but stresses The importance of improving the rate of electronic auctions. At the same time, he notes that there has been a partial improvement in the financing of Greek banks, but this is partly due to the lower financing of borrowers due to deleveraging. As BofA points out, more work is needed in terms of cost management, especially as revenues could continue to fall.
Referring in more detail to the electronic auctions, the first data suggest that they have been up to now minimal. impact on the behavior of the bad payers. In addition, the slow progress in the process leads to the maintenance of the NPEs in the four banks to a large extent unchanged. The rate of completion of the electronic auction seems to be low, as BofA notes, with banks signaling a number of hurdles to the process, including real estate prices set too high in auctions, as well as the lack of a good record of securities
BofA also points out that she does not expect housing prices to recover in the coming years in Greece and that she is seeing downside risks as banks remove real estate from their books.
According to Piraeus, the US bank claims that real estate sold on its platform earned an average of 11% less than market prices. Unlike Ireland, BofA does not expect the Greek property market to be supported by a lack of supply and property taxes.
BofA makes changes in the indicative prices for National and Eurobank. Alpha Bank and Piraeus. The target price of Ethniki is reduced to € 0.31 against € 0.32 previously and for Eurobank to € 1.17 against 1.14 euros, with a "neutral" recommendation, while prices for Alpha Bank and Piraeus remain unchanged. unchanged at 1.60 euros and 3.23 euros respectively with a recommendation "underperforming".
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