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E-Kalathi’s Discount Dilemma: Genuine Savings Or Mere Illusion?

Conceived as a tool to reduce grocery prices, e-kalathi has come under intense scrutiny as its practical utility diverges from its original promise. Despite its objective to deliver tangible savings to consumers, recent analyses reveal that several supermarket chains may be leveraging the platform more for advertising appeal than for providing real discounts.

Misleading Price Comparisons

Recent findings by the Cyprus Consumers Association indicate that even seven months after its launch in June 2025, e-kalathi has fallen short in meeting its stated goals. The data suggest that the platform may create a distorted picture of pricing, misleading consumers to believe one chain offers the lowest prices overall. In practice, the display of selectively discounted items can lead to erroneous perceptions about a supermarket’s overall pricing structure.

Flavor-Specific Price Discrepancies

One example involves a children’s yogurt dessert. A strawberry flavor appears on e-kalathi at a lower price, while other flavors of the same product are not listed. This can suggest broader savings even though the discount applies only to one variant. Notably, only a few retailers, such as Athinaeitis and Ioannidis, maintain uniform pricing across all variants, bolstering customer trust through consistent pricing practices.

Promotion Compliance Under The Microscope

Concerns also extend to promotional campaigns. According to the Cyprus Consumers Association, offers such as “1+1 free” are sometimes presented in a way that may not clearly reflect the actual unit price. Under current regulations, if a product is listed at €3, the promotional unit price should not exceed that amount. In practice, some retailers appear to adjust list prices without immediately updating or removing the promotion, which can create confusion for shoppers.

Cases such as detergents incorrectly labeled under “1+1 free” promotions highlight broader questions about price transparency. The discussion around e-kalathi’s operation has therefore focused on the need for clearer pricing rules and more consistent promotional practices among supermarkets.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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