Greece is opening up the circle of opportunity for European banks, according to UBS, with Piraeus Bank standing out as the firm’s portfolio top pick. As noted in UBS’ recent feedback roadshow, Greek banks currently offer the most attractive combination of credit growth and customer spreads in Europe, making them particularly attractive in an environment where the ECB now appears firm on monetary policy. After underperforming in Q2 2025, Greek bank stocks have started 2026 strongly, rising between 9% and 13% since the beginning of the year, with Piraeus standing out in both relative performance and investor interest.
UBS maintains a Buy recommendation on all Greek banks it covers, but Piraeus is the preferred choice for targeted exposure to the Greek banking sector. The house notes that the stock combines an attractive valuation, accelerating profitability, and improving return on capital, while several international investors are choosing to allocate their exposure to more than one Greek security to address the issue of lower – though no longer restrictive – liquidity.
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