Greek banks, including those operating in Cyprus, continue to strengthen their financial position, demonstrating superior profitability, capital adequacy, and liquidity compared to European averages in early 2026. According to recent data and reports from the European Central Bank and Bank of Greece, the sector posted a return on equity of 8.73% in Q1 2026, nearly double the European average of 4.7%, while maintaining strong capital buffers with a Common Equity Tier 1 ratio of 14.9%.

Liquidity and asset quality also improved, with loans-to-deposits ratios well below European norms and non-performing loan ratios steadily falling. Greek banks successfully raised significant capital through AT1 instruments, Tier 2 bonds, and green bonds, supporting both resilience and the financing of the green transition.

Investment banks remain optimistic about the sector's outlook, highlighting valuation advantages and potential growth driven by increased credit expansion, improved dividend payouts, and Greece's advancing economic status. The focus is shifting from balance sheet repair to maximizing shareholder returns amid sustained economic growth and a stable fiscal environment.