For the first time since the sector was hit by the financial crisis, Greek banks have been given the green light to pay dividends.
The European Central Bank (ECB) supported the shareholder payouts after sixteen years.
Greece was one of the European countries worst hit by the 2008 financial crisis, which led to the state intervening to bail out the banks.
Tragedy: The economic collapse led to widespread protests
The emergency measure caused the country’s economy to shrink by a quarter.
Rising unemployment and street protests contributed to the chaos and almost led to Greece leaving the eurozone.
The National Bank of Greece said yesterday that it plans to return £282.7 million to shareholders. Alpha Bank will hand out £103.8m of 2023 profits – half as cash dividends and the rest as share buybacks.
Piraeus Bank shareholders will receive £67 million and Eurobank will pay £291 million. Alpha Bank CEO Vassilios Psaltis said this was “the final stamp of approval for the bank’s full return to normality since the outbreak of the financial crisis.”
It comes as banks have reduced their non-performing exposure ratios – a measure of lenders’ credit risk – to less than 6% from 45% in 2016. They have also reduced state ownership and become profitable.
Earlier this year, Greece’s finance minister said the government will this year complete the sale of its outstanding stakes in five banks bailed out during the debt crisis.
The state recently sold its stake in three major banks, raising almost another £2 billion.
The sale of a 27 percent stake in Piraeus Bank was eight times oversubscribed.
The final distribution of payouts must be approved by the lenders’ shareholder meetings, which are expected to take place in the summer.