UBS: Utilization of excess capital by banks pivotal

The cardinal for Greek banks will beryllium to utilize their excess capital, which exceeds 4 cardinal euros, according to UBS, which confirms its affirmative stance connected each 4 systemic lenders.

As the Swiss slope notes successful a study released connected Friday, a cardinal contented for unlocking further value for Greek banks is the allocation of excess superior done higher payments, incremental acquisitions, and integrated plus growth.

Greek banks proceed to importantly summation their capital, with CET1 superior ratios ranging from 14.2% to 18.9%. What bash banks program to bash with the excess capital?

UBS notes that since it is hard astatine this stage to get regulatory support to wage excess superior successful a special distribution, banks are looking for smaller, targeted bolt-on acquisitions to boost their growth.

Already Alpha has announced 4 acquisitions, and Eurobank has made acquisitions successful Bulgaria and Cyprus, while it seeks to summation its presumption successful Bulgaria and Luxembourg.