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Greek Systemic Banks Forecast Robust Profitability and Strategic Dividend Payouts

by THEFUTURE.TEAM
August 5, 2025

Strong Q2 Performance Sets the Stage

Greece’s four systemic banks continue to deliver impressive profitability, with forecasts projecting total earnings to reach approximately €4.7 billion by the end of 2025. This performance is bolstered by sustained credit activity and a full-year net credit expansion estimate of €13 billion or more.

Sustained Credit Growth and Lending Dynamics

Analysts note that the banks’ robust credit operations are a key driver of this fiscal strength. Business lending is expanding rapidly, fueled by broader economic growth and significant disbursements from the Recovery and Resilience Facility. However, mortgage lending remains subdued, constrained by high property costs and limited household incomes. Eurobank’s foreign loan portfolio, in particular, has been a major contributor to overall performance, while domestic mortgage credit continues to stagnate.

Strategic Dividend Distribution

In line with international practices, all four banks—Piraeus, Eurobank, National Bank of Greece (NBG), and Alpha Bank—have approved interim cash dividend payouts. These distributions, ranging from 10% to 20% of net profits with yields between 1.2% and 2.4%, reflect a return to stability and instill confidence in the sector. NBG leads the field with a €260 million payout, both in absolute terms and as a 20% share of profits, while Piraeus Bank opts for a more conservative 10% allocation. Although share buyback programs are on hold due to elevated stock valuations, several institutions are poised to resume them in the future. Notably, NBG has also signaled the potential for a final dividend payout exceeding 60% of annual earnings.

Resilient Interest Income and Capitalisation

Resilience in net interest income, driven by strong lending volumes and a predominance of low-yield savings and current deposits, underscores the banks’ performance. With 80% of Greek retail savings deposits held in NBG’s portfolio, the banks are well-positioned to weather market fluctuations. Despite anticipating a rate cut in September, industry experts do not expect interest rates to drop below 1.5%, which supports steady income flows and reinforces profitability forecasts.

Future Strategies and Mergers & Acquisitions

Each bank is pursuing distinct strategic pathways in the mergers and acquisitions landscape. NBG is actively exploring strategic acquisition opportunities, Alpha Bank is focused on pursuing investments with a minimum 15% return on investment that boost both capital and earnings per share without impacting dividend policy, and Eurobank is scouting for consolidation prospects outside Greece, particularly in Bulgaria’s evolving banking market. Piraeus Bank is dedicated to finalizing its national insurance process and closing a Danish settlement anticipated to strengthen its capital base.

Conclusion

The sustained interest income and strategic initiatives underpinning these banks provide a robust foundation for their optimistic 2025 outlook. With diversified approaches to lending, dividend distribution, and capital management, these institutions are set to navigate the evolving market landscape and reinforce their positions as pillars of the Greek banking sector.

Airbnb Unveils Reserve Now, Pay Later Option For U.S. Guests

by THEFUTURE.TEAM
August 15, 2025

Introduction

Airbnb has introduced an innovative payment solution designed to enhance user flexibility for U.S. travellers. The new “Reserve Now, Pay Later” feature enables users to secure a booking without an upfront payment, offering a streamlined cancellation process should plans change.

Flexible Payment Terms

This new option applies to listings that feature either flexible or moderate cancellation policies. Under a flexible policy, guests can cancel their reservation up to 24 hours before check-in, while a moderate policy offers no-fee cancellations until five days prior to arrival.

Payment Timing and Reminders

Regardless of the cancellation window, guests are obligated to complete the full payment before the expiration of the free cancellation period. Airbnb ensures a smooth experience by sending timely payment reminders to avoid any last-minute issues.

Evolution of Airbnb’s Payment Solutions

This initiative builds on Airbnb’s previous forays into flexible payment structures. In 2018, the company offered a partial upfront payment model, and more recently, a collaboration with Klarna enabled guests to pay in four installments over six weeks. Such strategic advancements demonstrate Airbnb’s commitment to adapting and refining its payment solutions to meet evolving consumer demands.

Consumer Insight Driving Innovation

Airbnb’s decision to launch the “Reserve Now, Pay Later” feature reflects robust consumer demand, with recent surveys indicating that 55% of respondents prefer flexible payment options. Additionally, 42% noted missed opportunities due to payment complexities when coordinating with travel companions, underlining the need for simplified financial arrangements.

Conclusion

By enhancing payment flexibility, Airbnb not only broadens its appeal but also addresses critical customer pain points, reinforcing its position as a leader in the evolving travel market. This initiative exemplifies how strategic innovation can drive customer satisfaction in an increasingly competitive landscape.

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