Opens in a new tab

Breaking news

Greek Banks Advance With Strategic Acquisitions And Dividend Initiatives Amid Robust Performance

Strong Capital Underpins Bold Share Acquisitions

Eurobank has taken a decisive step by repurchasing 1,334,684 of its own shares between August 11 and 14 at an average price of €3.45, amounting to a total investment of €4.61 million. This move, executed on the Athens Stock Exchange via Eurobank Equities Monoprosopi Anonymous Investment Services Company, follows rigorous approval from the bank’s board and the Annual General Meeting of Shareholders on April 30, 2025.

Now holding 32,836,468 treasury shares—equivalent to 0.8931% of its share capital—Eurobank signals robust confidence and a steadfast strategy designed to enhance shareholder value and fortify its market positioning.

Resilient Profits Drive Strategic Dividend Distributions

Across the Greek financial landscape, systemic banks are set to conclude 2025 with sustained net interest income potentially reaching €8.5 billion, buoyed by record credit expansion across Europe expected to near €14 billion. The primary drivers of growth include a strong surge in business loans supported by the Recovery and Resilience Facility, although mortgage lending remains subdued due to high property prices and low household incomes.

Data from the European Central Bank highlighted Greece’s exceptional 16.6% annual loan growth to non-financial corporations in June, a key factor that offsets pressures from decreasing interest income. Despite €157 billion in low-yield deposits, banks benefit from a favorable interest rate spread, with June figures standing at 4.27%, solidifying profitability despite a declining eurozone rate environment.

Confidence In Future Earnings And Strategic Diversification

Anticipated strong earnings, with projected adjusted profits at €4.7 billion for 2025, underpin the distribution of interim dividends by major banks including Piraeus, Eurobank, National Bank of Greece, and Alpha Bank. Dividend rates, ranging from 10% to 20% of net profits, further reinforce market confidence. National Bank of Greece notably leads with a €260 million payout, while Piraeus Bank takes a more conservative stance.

Amid these favorable dynamics, high share prices have prompted some institutions to momentarily pause share buybacks, with National Bank leaving the door open for a final, potentially significant dividend distribution. Strategic mergers and acquisitions also remain on the horizon, with National Bank focusing on expansion into the insurance sector, and Piraeus Bank finalizing its acquisition of Ethniki Insurance to consolidate its capital strength.

Outlook: Stability And Strategic Growth

With impressive capital buffers and rigorous stress test outcomes, Greek banks are well-positioned to navigate a challenging market environment while diversifying revenue streams. Each decision—from share repurchases to dividend distributions and strategic acquisitions—reflects a broader commitment to delivering sustained value for stakeholders, positioning these banks at the forefront of a resilient and evolving financial landscape.

Limassol Port Electrification Awaits Grid Connection And EU Funding

Plans to equip Limassol port with shore-side electricity are advancing at the technical level, but unresolved administrative procedures, a pending grid connection and the need to secure European funding continue to delay implementation.

The proposed shore-power system, also known as cold ironing, would allow vessels to connect to electricity while berthed, reducing reliance on onboard engines and cutting emissions and noise in the surrounding area.

Technical Studies Near Completion

Transport Minister Evi Tsolaki said work is progressing through the EU-backed DecarbonLim programme, which is preparing the technical assessment and feasibility study required before construction can begin. The ministry is seeking regular updates from the Cyprus Ports Authority on the studies’ completion timetable.

The initiative also involves Frederick University, Eurogate Container Terminal Limassol, DP World Limassol, the Electricity Authority of Cyprus, the Cyprus Transmission System Operator and Limassol Municipality.

Grid Connection Remains A Key Hurdle

Despite progress on the studies, construction cannot proceed until the project secures a connection to the national transmission network.

Tsolaki said the ministry has requested land from the Department of Lands and Surveys for an electricity substation. Once the site is allocated, the relevant applications can be submitted to the Cyprus Transmission System Operator to advance the grid-connection process.

Until these steps are completed, the project will remain in the preparatory phase, even if the technical studies are finalised.

European Funding Adds Urgency

The feasibility work under DecarbonLim will support an application for construction financing, Tsolaki said. A competitive European funding call is currently open, and the ministry intends to submit an application within the required timeframe.

The funding window has raised concerns in parliament. MP Fotini Tsiridou warned that further delays could undermine Cyprus’ chances of securing EU support, noting that similar port electrification projects elsewhere in the bloc have already received funding.

Speaking to Entrepreneurial Limassol, published by the Limassol Chamber of Commerce and Industry, Tsiridou said she had observed some progress but had yet to receive a formal response to her parliamentary question.

Environmental And Commercial Benefits

Tsiridou argued that shore-side electricity would deliver benefits beyond emissions reductions, including less noise and air pollution for residents near the port.

“Our port should not be disconnected from the rest of the city,” she said, describing shore-power infrastructure as both a necessity and a European obligation.

Across Europe, port electrification is increasingly linked to environmental performance and competitiveness. By allowing compatible vessels to switch off auxiliary engines while docked, shore-power systems can reduce local emissions and noise while supporting wider decarbonisation goals.

Construction Timetable Still Unclear

The Cyprus Ports Authority signed a contract with DBA S.p.A. in July 2025 for a comprehensive study of the system’s technical, economic and environmental requirements. The work was intended to establish the basis for installation and identify any necessary port infrastructure upgrades.

More than a year later, key steps concerning land allocation, grid connection and financing remain unresolved. No timetable has been announced for completing these procedures or submitting the final funding application.

Limassol’s shore-power project therefore remains between planning and implementation. Its next milestones are securing the substation site, progressing the transmission-network application and obtaining construction financing. Until these are in place, the port’s transition to shore-side electricity cannot move into the construction phase.

Aretilaw firm
The Future Forbes Realty Global Properties
Uol
eCredo

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter