In the fourth quarter of 2025, the capital adequacy ratios of Greece's four systemic banks experienced a slight downturn, with the Common Equity Tier 1 (CET1) ratio falling to 15.46% from 16.09% in the previous quarter. This marks the lowest level for these banks since Q3 2023, while the Eurozone overall showed a continued improvement, with an average CET1 ratio of 16.18%. Notably, only Spanish banks reported weaker performance within the Eurozone system, further highlighting Greece's relative position.

The decline in capital adequacy is accompanied by pressures on profitability, where the Return on Equity (RoE) decreased to 11.98% and the Return on Assets (RoA) dropped to 1.29%. This trend of diminishing profitability aligns with an overarching decline in Eurozone banking, driven partly by the contraction in net interest margins, which fell to 2.69%. These financial indicators suggest that while the banking sector in Greece is facing challenges, it is not isolated, as many banks across the Eurozone are grappling with similar issues.

Despite these challenges, credit expansion in Greece has accelerated, with lending surpassing €153.5 billion and deposits exceeding €245 billion, indicating a robust demand for credit and confidence in the banking sector. These statistics imply that while profitability and capital ratios are pressured, the underlying activity in the credit markets remains strong, presenting a mixed but informative picture of the health of the Greek banking sector moving forward.