Morgan Stanley has commenced coverage of Greece's banking sector with a positive outlook, maintaining overweight recommendations for Alpha Bank, Eurobank, and Piraeus Bank while giving a neutral stance to the National Bank of Greece and CrediaBank. The American investment bank cites Greece's robust economic growth, strong domestic demand, and sustained investment inflows as key factors supporting the banking sector.

The report forecasts Greek GDP growth of 2.1% in 2026 and 2.0% in 2027, anticipating continued corporate lending growth and rising fee income from asset management and insurance activities. Morgan Stanley emphasizes that Greek banks remain highly interest rate-sensitive, supporting net interest income, and benefit from strong deposit bases that help maintain high profit margins.

Despite recent strong rallies in bank shares, Morgan Stanley finds valuations attractive, noting Greek banks trade at a 10% discount in 2028 price-to-earnings ratios versus European peers. Alpha Bank is ranked highest with a target price of €4.90 and potential 25% upside. The investment bank expects Greece's upgrade to a developed market by 2026-2027 to further boost investment interest in Greek banking equities.