American investment house Jefferies recently issued a comprehensive financial update raising its target price for the National Bank of Greece (NBG) to €18.10 from the previous valuation of €17.00.

The equity research report, authored by financial analysts Alexander Demetriou and Joseph Dickerson, maintained a firm buy rating for the lender.

The updated assessment, whose findings were shared by Greek business outlet Newmoney, implies a significant potential upside of approximately 29 per cent for the bank’s stock.

The financial institution delivered strong first-quarter financial results for 2026, which solidified its position as one of the top performers among Greek banks in terms of both profitability and capital adequacy.

A key metric highlighted in the report was the bank’s return on tangible equity, which reached an impressive 16.3 per cent during the opening quarter of the year.

Furthermore, the bank’s lending portfolio demonstrated robust growth, with net loans increasing by 11 per cent on an annual basis to reach €40.2 billion.

The analysis placed considerable weight on the newly formed strategic partnership with Allianz, under which the banking group will acquire a 30 per cent minority stake in Allianz European Reliance.

This corporate agreement establishes an exclusive 10-year bancassurance partnership that effectively addresses the product gap the bank previously faced within the insurance sector.

The investment firm projected that this commercial alliance is poised to quadruple insurance fee revenues from 2027 onwards.

Consequently, the analysts upwardly revised their earnings per share estimates by 6 per cent for both 2027 and 2028.

The updated financial model also incorporates higher projections for net interest income, driven by a more effective deployment of excess liquidity into strategic bond placements.

The group also demonstrated significant commercial momentum within its wealth management operations, where retail assets under management climbed to €9.6 billion.

This shift represents a substantial 26 per cent increase year-on-year, pushing the bank’s overall mutual fund market share close to 18 per cent, up from 15 per cent recorded 12 months prior.

Shareholders are also positioned to benefit from aggressive capital distribution plans, with the bank expected to return approximately 25 per cent of its current market capitalisation to investors between 2026 and 2028 through a combination of dividends and share buybacks.

The bank’s financial stability remains highly secure, evidenced by a Common Equity Tier 1 ratio of 17.4 per cent.

This capital buffer sits comfortably above the regulatory and internal target of 14 per cent, ensuring that a substantial surplus capital cushion is maintained even after fulfilling all projected shareholder distributions.