With ELA maintained at Friday’s level the Greek government had to impose capital controls and keep banks closed until after the referendum takes place. The Greek economy has entered unchartered territory but we are certain economic activity will freeze. In this context we are withdrawing our ratings (previous DOI) and target prices on Greek banks….
Judging Greek equities’ rise today (+3.4%) and in the last four sessions (+8.1%) we understand investors are optimistic that Greece will soon (within May) strike a deal with its creditors and avoid defaulting on its payments; If this is the case then Greek stocks and especially banks, which are down by more than 60% in…
We downgrade 2016 sector earnings estimates by 22% (now at E2.7bn) as we expect sovereign uncertainty to cast its shadow for the remaining of 2015, hindering liquidity, deposit rates, lending growth and overall economic growth prospects. Normalization has been pushed back with banks unable to resume their intermediary funding role, let alone generate decent RoTE…
With this flash note we highlight some of the difference (s) on economic policies for the two main parties in a pre-election era. For New Democracy we go back three and half years when Greece was in a primary deficit; for Syriza we go back 3 months – to access this note contact@researchgreece.com
We cut our 2016E net income by 18% driven by Greek NII; sector trades 0.67x TBV 2016E and 6.2x P/E following recent sell-off, on 10.8% RoTE. We upgrade NBG on valuation grounds (PT at E2.5); superior PPP and implied RoTE; asset quality/coverage capacity; uncovered NPLs at 93% of TE (lowest among peers); biggest upside to…