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HSBC Adjusts Target Prices For Greek Banks, Highlights Rising Dividends As Key Attraction

HSBC has revised its target prices for Greek banks, with an emphasis on increasing dividends as the main factor attracting investors, even as profitability momentum slows.

For Alpha Bank, the target price is set at €3.05, up from €3, with a “buy” recommendation and a potential upside of 75.3%. Eurobank’s target remains unchanged at €3.50, also with a “buy” rating and a 44% upside potential. National Bank’s target has increased to €9.90, up from €9, with a “hold” recommendation and a 16.2% upside margin, while Piraeus Bank’s target is raised to €7.25 from €6, with a “buy” rating and a 63.7% upside potential.

HSBC notes that the sector’s main appeal lies in the anticipated rise in dividends, with a forecasted 27% increase in dividends per share by 2026, leading to dividend yields of 7-10%. The outlook is supported by strong nine-month 2024 results, improving capital strength, better credit ratings, and the limited impact of faster DTC amortization, which positions all banks to achieve a payout ratio of 50% by 2026.

Despite profitability declines due to lower interest rates, higher payouts will likely drive further stock appreciation, with HSBC indicating that lower book valuations and high dividend yields leave room for gains. The profitability of Greek systemic banks is expected to decline by 9% in 2025, but this follows a strong base. However, HSBC has revised its 2024/25/26 profit forecasts upwards by 16/14/20% on average, reflecting factors like robust credit expansion in Greece, asset management momentum, and a reduction in the cost of risk.

HSBC has downgraded National Bank to a “hold” from a “buy” due to limited downward adjustment potential in its funding costs, which may result in weaker net interest income (NII) prospects over the next two years. Conversely, Piraeus Bank stands out with a 10% dividend yield for 2026, one of the highest in CEEMEA. Eurobank is favored for its successful capital allocation and attractive valuation, while Alpha Bank is seen as the most accessible exposure to Greek banks, with a positive earnings outlook and a compressed valuation.

While Greek banks are appealing, HSBC also highlights alternatives with better combinations of earnings growth and dividend yield, including PKO, Moneta, and Isbank, particularly due to factors such as reduced mortgage loan provisions and favorable shifts in interest rates.

Forbes Middle East Unveils 100 Most Powerful Businesswomen Of 2025

Forbes Middle East has unveiled its much-anticipated 2025 ranking of the region’s top businesswomen, spotlighting influential leaders reshaping industries and driving meaningful transformation. The list was based on business size, individual accomplishments, leadership impact, and corporate social responsibility initiatives.

Top Spot For Hana Al Rostamani

For the third consecutive year, Hana Al Rostamani, Group CEO of First Abu Dhabi Bank (UAE’s largest bank by assets), claims the top position. In addition to retaining her position in the Forbes Middle East ranking, she was also featured on Forbes’ 2024 list of the World’s Most Powerful Women, securing the 60th position globally. Under her leadership, the bank achieved an impressive $3.5 billion in net profits and $334.8 billion in assets in the first nine months of 2024.

Rising Stars In The Top 10

Shaikha Khaled Al Bahar of NBK Group and Shaista Asif, cofounder and Group CEO of PureHealth Holding, take the second and third spots respectively, completing the top three.

The top 10 remains largely unchanged from last year, with Tayba Al Hashemi of ADNOC Offshore, Alisha Moopen of Aster DM Healthcare GCC, and Suzanne Al Anani of Dubai Aviation Engineering Projects (DAEP) making their debut in the top 10. In total, 27 new leaders have joined the list this year.

A Diverse And Powerful Group Of Women

This year’s list features 100 women from 32 sectors and 29 nationalities, underlining the diversity of talent driving the region’s progress. The banking and financial services sector leads with 25 entries, followed by healthcare and technology with nine each, and venture capital with five. Remarkably, 40% of the top 10 women are from the banking and financial services sector. Notably, Shaista Asif (PureHealth Holding) and Alisha Moopen (Aster DM Healthcare GCC) are the only non-Arab women in the top 10.

UAE Leads With 46 Leaders

The UAE continues to dominate, with 46 of the women on the list hailing from the country, solidifying its status as a global business hub. Egypt follows with 18 influential women, and Saudi Arabia claims nine entries. Egyptians lead in representation, followed by Emiratis and Lebanese women.

Empowering Women Through Initiatives

Several of the leaders have focused on upskilling and creating opportunities for women. Susana Rodriguez Puerta launched the ‘sAIdaty’ initiative in collaboration with the Dubai Business Women Council, aimed at providing 500 female council members in the UAE with AI skills. Similarly, Lamia Tazi of SOTHEMA collaborated with the Foundation for Research, Development, and Innovation in Science and Engineering to provide scholarships to PhD students from low-income backgrounds.

Click here for the full list.

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