Greek banks reported strong credit expansion in the first quarter of 2026, reinforcing expectations that lending growth will support the country’s economic trajectory, according to published banking results and sector forecasts.

According to a report from Greek business outlet Newmoney, credit expansion among the three systemic lenders that announced first quarter results reached around €2.9 billion, indicating that total expansion across all credit institutions is expected to exceed €4 billion in the quarter.

A key confirmation of this momentum comes from bank management forecasts for the full year, as outlined during the first quarter results announcements.

Eurobank stated that it will comfortably meet its target of €2.8 billion in credit expansion for the year, while the National Bank of Greece expects to exceed €3 billion according to its management estimates.

Piraeus Bank is also expected to comfortably surpass €3.5 billion in credit expansion, signalling a strong combined contribution from systemic lenders.

On this basis, total credit expansion from systemic banks alone is projected to exceed €12 billion in 2026, underlining the scale of lending activity expected in the coming year.

Net interest income across the three systemic banks reached €1.645 billion in the first quarter, with €664 million from Eurobank, €541 million from the National Bank of Greece and €440 million from Piraeus Bank.

This implies that total interest income for the sector is expected to exceed €2 billion in the first quarter, while a moderate and likely increase in interest rates could push annual interest income for 2026 above €9 billion.

Banks continue to accelerate retail banking activity, with credit expansion showing positive momentum from quarter to quarter across both household and corporate lending segments.

The next quarter is expected to be particularly strong for business lending due to disbursements linked to the Recovery Fund, while housing loan programmes, including “Home II”, continue to support steady demand alongside an improved successor scheme currently being prepared.

Despite strong domestic growth in lending, Greece ranks sixth among European markets in terms of credit expansion growth rates, according to European Central Bank (ECB) data, as less developed economies continue to lead.

The figures also reflect that Greece recorded negative annual growth in retail banking during the first quarter, despite increases in mortgage lending activity.

ECB data shows that Bulgaria leads with credit expansion of 16 per cent in the first quarter, followed by Hungary, Croatia, the Czech Republic and Poland at 7 per cent.

Greece recorded a rate of 5 per cent, down from 6 per cent in the previous quarter, compared with an average of 3 per cent in the euro area.

In retail lending, Bulgaria recorded annualised growth of 21 per cent, while corporate lending stood at 10 per cent, highlighting a strong dual expansion profile.

By contrast, Greece recorded 10 per cent growth in corporate lending but negative retail lending growth of 3 per cent, despite strong underlying mortgage activity in the first quarter.

Ireland also recorded negative retail lending growth of 4 per cent, while euro area averages stood at 3 per cent for both corporate and retail segments.