1/ Eurobank: OWN IT based on 0.9x P/TE and 7.4x P/E 2016E pro-forma for E3bn capital increase; 2/ Earnings: bridging 2013 to 2016; 3/ Price Target sensitivities based on different RoTE/CoE; 4/ Asset quality update – 2013; 5/ Warrants: fair value estimates; biggest catalyst: asset quality; on a like-for-like basis we favor Eurobank given the valuation gap with peers; Need normalized RoTE >15% for Alpha and Piraeus and >20% for National for risk/reward to pay off, in our view…to access this report  contact@researchgreece.com

With this research note we attempt to address the following issues surrounding the sector: a) what is the market discounting at current levels? b) Impact from the DTA forbearance, c) changes in the recap framework, d) a closer look at Eurobank’s capital increase and d) an update on warrants’ pricing and valuation..to access this report  contact@researchgreece.com

The first exercise period is approaching. We have created a ‘Plug-and-Play’ calculator spreadsheet, which adjusts automatically for the days remaining. Readers can insert their own risk free/volatility assumptions for each bank and estimate the value of warrants…to access this spreadsheet  contact@researchgreece.com

Greek banks trade 1.3x P/TE on the back of a flow-driven  re-rating (3M: +55%) with no change in the DSA outlook. Credit quality remains the main challenge with Blackrock 2 and stress tests being the next catalysts. Economic/fiscal conditions have improved but the sovereign is still struggling. We reiterate our DOI rating on all banks covered… to access this report contact@researchgreece.com