A key driver behind the sustained strong profitability of Greek banks is robust credit expansion, with market estimates suggesting that new loans issued this year could exceed €15 billion.
Greece leads the Eurozone in business lending
Greece ranks eighth among Eurozone countries in private sector credit expansion (covering both households and businesses), and fifth in business lending, according to European Central Bank data for the first half of 2026. In June, Greece’s lending growth rate was more than double the Eurozone average — household loan growth stood at 2.93% and business loan growth at 4.05% across the Eurozone. In Greece, household loan growth reached 2.83%, while business loan growth surged to 11.28%, bringing the annual private sector credit expansion rate to 9.44%, compared to just 4.22% for the Eurozone as a whole.
Greece’s remarkable business lending growth rate of 11.28% is surpassed only by banks in Ireland (11.70%), Bulgaria (12.81%), Latvia (14.60%), and Lithuania (16.99%). Close behind Greek banks in business credit expansion are Cyprus (11.22%), Estonia (10.94%), Malta (10.28%), Croatia (9.30%), Slovenia (8.89%), and the Netherlands (7.13%), while Germany trails at a mere 0.71%. Household credit expansion in Greece still lags slightly behind the European average (2.83% vs. 2.93%), but it is recovering — mortgage lending turned positive in October 2025 — and remains higher than in Italy (2.66%), Austria (2.12%), Germany (2.03%), France (1.46%), and Finland (just 0.18%).
It is worth noting that in terms of overall private sector credit expansion, the top three performers in the Eurozone are Bulgaria (16.26%), Latvia (14%), and Malta (10.87%), while among Southern European countries, Portugal is expanding at 8.65%, Spain at 4.42%, and Italy at 4.25%.
Household lending recovery and Europe’s performance
The strong credit expansion of Greek banks toward businesses was also reflected in the second-quarter results announced by the banks this week, leaving the door open for new loans that could well exceed €15 billion in 2026. As early as their first-quarter results announcements, Greek banks had already set ambitious lending targets for the year: National Bank of Greece is targeting €3 billion in credit expansion, Eurobank €3.8 billion, Piraeus Bank €3 billion, Alpha Bank €3.5 billion, CrediaBank €1.2 billion, and Optima Bank €1.1 billion.
Bankers point out that the outlook for credit expansion remains positive even after the expiration of the Recovery Fund. They note that demand for loans in key growth sectors — including energy, infrastructure, technology, defense, and water resources — is estimated at €38–45 billion over the next three to four years, a figure many times greater than the total loans disbursed through the Recovery Fund.
Originally published in MoneyPro by Parapolitika
