The National Bank of Greece (Cyprus) recently presented its activities in the Cypriot business environment during a conference held in Athens.
In a speech delivered at the event, Marilena Sevastidou, Head of Corporate Banking, highlighted the “exceptionally positive momentum” currently characterising Greece-Cyprus bilateral relations.
She explained that this “fosters a mutually beneficial growth environment” and provided an in-depth analysis of the Cypriot economic and business landscape.
Moreover, she focused on recent European Central Bank (ECB) projections, which foresee continued positive economic growth for 2025 and 2026, exceeding the European average.
Sevastidou also highlighted the financial and tourism sectors as key drivers of the Cypriot economy.
Additionally, she pointed out that Cyprus currently “has an attractive investment climate”, citing targeted tax incentives and a “specialised, multilingual workforce”.
She said that these are “key advantages that offer the country a clear comparative edge”.
Particular attention was given to the 15 per cent annual increase in investments in the digital economy, with the startup and technology ecosystem—covering fintech, artificial intelligence, and cybersecurity software development—experiencing significant growth.
This comes as both businesses and public institutions increasingly embrace digital solutions.
Sevastidou also underlined the unique investment opportunities in Cyprus’ solar and wind energy projects, which support the government’s ambitious goal of meeting 35 per cent of the country’s energy needs from renewable sources by 2030.
Regarding the restructuring plan of the National Bank of Greece (Cyprus), she outlined the bank’s new business development and operational model, based on strategic pillars in the domestic market and international transactions.
“The National Bank has been present in Cyprus since 1910, and we now aim to further strengthen our dynamic presence and the quality of our services, benefiting both our clients and society,” she said.
“Our focus is on expanding international banking and providing specialised solutions to meet our clients’ needs,” she added.
Sevastidou stressed that, as the group’s international hub, the bank “aims to finance productive investments for local and international corporate clients, participate in syndicated loans and global projects, and leverage the expertise and extensive experience of the National Bank Group across the full spectrum of complex financial services and major infrastructure projects”.
“The National Bank of Greece (Cyprus) is here to support every step of a growth initiative, offering not only financial resources but also high-quality services, expertise, advisory guidance, and meaningful support,” Sevastidou concluded.
S&P upgrades Greek banks amid stronger framework and capital quality
Meanwhile, it should be noted that S&P Global Ratings recently upgraded four Greek banks, citing a stronger institutional framework and improved capital quality.
The agency raised the National Bank of Greece and Eurobank to investment grade, moving them from BB+ to BBB- with stable outlooks.
Piraeus Bank was upgraded from BB to BB+ with a stable outlook, while Aegean Baltic Bank saw its rating rise from BB- to BB, also with a stable outlook.
“Our view on the institutional framework of Greek banks is now aligned with that of most Eurozone banks,” S&P stated in its announcement.
“The gradual economic strengthening of Greek banks has provided the Supervisory Authority with greater room to act proactively and address remaining issues from the financial crisis,” it added.
The agency further said that the joint exercise of regulatory and supervisory duties with the European Central Bank for Greece’s four largest banks, which account for 95 per cent of the system’s total assets, reinforced its assessment.
It also noted the crucial role played by the Bank of Greece in implementing initiatives aimed at accelerating the recovery of the Greek banking system after a decade-long financial crisis.
According to S&P, the regulatory authority has supported banks in tackling large stocks of non-performing exposures (NPEs) from the crisis era.
This effort was carried out in collaboration with the Single Supervisory Mechanism of the ECB, the Ministry of National Economy and Finance, and the Hellenic Financial Stability Fund.
A key factor in this recovery was the successful implementation of the “Hercules” programme, which provided state guarantees to help banks securitise and offload NPEs from their balance sheets.
This led to a significant improvement in the banking sector’s credit profile, with the NPE ratio dropping to 4.6 per cent by the end of September 2024 from 56.3 per cent at the end of 2016.
S&P pointed out that following the restoration of asset quality and profitability, Greek banks have reached a turning point.
Moving forward, they are expected to use capital to expand their balance sheets and sustain profitability while minimising new inflows of bad loans.
The agency also said that it expects that by the end of 2024, the NPE ratio for Greece’s systemically important banks will range between 2.5 per cent and 4 per cent.
Looking ahead, S&P warned that lower interest rates and compressed margins will pressure banks to find new revenue streams to protect profitability.
These could include a notable increase in lending by 4 to 5 per cent annually over 2025-2026, supported by continued large-scale government investments, Next Generation EU funds, and expanded fee-generation capabilities.
