A year of strong credit expansion that supported bank profitability and the real economy – that’s how 2025 will be remembered for Greek banks, as will be reflected in the results they’ll announce within the next two weeks. The strong momentum in new loan growth will continue in the coming years, encompassing both business loans and retail lending, with the increasing contribution of mortgage loans.
Bank loans increased by 8% in 2026
In the business plans that banks are expected to announce for the 2026-2028 period, the average annual increase in their lending, according to conservative estimates, is expected to be around 6%, with projections indicating an 8% growth rate this year. These are growth rates significantly higher than European banks, which represents a competitive advantage for the Greek banking sector, as international firms also highlight in their reports ahead of earnings announcements.
The strong credit expansion presented by Greek banks in 2025 was characterized by the dynamic restart of mortgage lending, continuous and accelerating support for businesses, and significant growth in consumer credit, which together composed the picture of new loan disbursements last year.
Data from the Hellenic Bank Association records the remarkable 46.3% year-on-year increase in new mortgage loan disbursements in 2025, signaling the start of a new upward cycle after fifteen years of contraction. During the past year, 45,000 households received new mortgage loans, with total disbursements reaching €2.649 billion. Through the “My Home II” program, 7,657 new mortgage loans were disbursed, totaling €831 million.
Housing loans expected to increase by 15%
In 2024, 26,832 mortgage loans totaling €1.81 billion had been disbursed. As bank executives estimate to “MoneyPro”, mortgage loans are expected to increase by around 15% this year, with new disbursements anticipated to reach €3 billion. It should be noted that mortgage lending showed the first signs of recovery last year, as it had suffered from large loan repayments that exceeded new disbursements. This is largely reflected in the total amount of mortgage loans, which decreased from €28.082 billion in December 2023 to €25.273 billion in December 2025, dropping by €2.809 billion.
Hellenic Bank Association data also records the particularly upward trend in financing to small businesses (with turnover up to €2.5 million and loan amounts up to €1 million) in 2025. HBA data shows a 10.5% year-on-year increase in actual disbursements, reaching €2.509 billion in 2025, granted to 38,912 small businesses.
In 2024, actual disbursements had reached €2.270 billion, corresponding to 36,392 loans to small businesses. Bank executives predict to “MoneyPro” a 10% growth rate in such lending this year.
Consumer credit also recorded double-digit growth of 15.1% in 2025, with total disbursements reaching €1.584 billion. During the past year, 432,474 new consumer loans were disbursed.
In 2024, 412,604 consumer loans totaling €1.376 billion had been disbursed. Banking forecasts to “MoneyPro” indicate consumer loan disbursements of €1.65 billion this year.
Published in Money Pro of Parapolitika
