Greek Banks
Moving to Not Rated
CEEMEA Banks
Paul Formanko AC
(44-20) 7134-4718
[email protected]
Bloomberg JPMA FORMANKO <GO>
Anna V Marshall
(44-20) 7742-2762
[email protected]
J.P. Morgan Securities plc
See page 4 for analyst certification and important disclosures, including non-US analyst disclosures.
J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that
the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single
factor in making their investment decision.
We are moving our stock ratings on Alpha Bank, NBG, Eurobank and
Piraeus to Not Rated. This is due to acceleration of uncertainty in respect
to the future of the banking system funding in the context of accelerating
deposit outflows and low visibility of an effective solution that would
restore confidence. In addition, further delays in economic recovery, with
decelerating economic activity, now increasingly likely, could result in reacceleration
of non-performing loans, adding further pressure on the
capital position of the banking system again, following c€60bn
recapitalization during 2013-14. With low visibility on future liquidity and
the capital position of the Greek banks and rising risk of capital controls
(according to JPM economists), we are removing our stock ratings on
Alpha Bank, NBG, Eurobank and Piraeus. Within CEEMEA, we prefer
exposure to Erste, Sberbank, OTP, Raiffeisen, Akbank and FGB.