Battle to increase procurement From tasks that show large growth rooms and do not concern the retail clientele, the banks. The battle is triggered by Piraeus Bank’s move by acquiring National Insurance, which was made by this reason: the differentiation of revenue sources, in a period of downward rates and thus reduction of interest revenue.
With this deal, Piraeus manages to increase the production of supplies at the level of the international market, as Greek banks are significantly lagging behind those of other European banks.
Despite the domestic arguments about expensive or much charges by Greek banks, the truth reflected in SSM statistics shows that supplies as a percentage of total operating revenue amounts to 28.8% for its supervised 110 EU systemic credit institutions and EU systemic credit institutions. It is a lag that counts negatively on the evaluations of the supervisor and investors, as it marks a risk for reduced revenue and profitability when there is decreasing interest rates.
Characteristically, Piraeus, after the National Insurance Deal, will increase the contribution of revenue from supplies to 28% of its total revenue, for each of the years 2026, 2027 and 2028. Without national insurance, net profits from 20% of the net revenue was estimated at 20%.
In 2024, the four large banks revenue of € 8,667 billion from interest and € 2,148 billion from supplies. Despite the reduction in ECB interest rates, interest rates were resistant, slightly decline or rise, as bond revenue and bond revenue, and hedging interest rates have worked defensively. Proceeds from supplies were raised up, mainly from clients’ banking and management operations, while increasing funding.
In terms of commissions revenue:
Piraeus Bank saw net procurement revenue of € 167 million in quarter 2024, increased by 7% on a quarterly basis and 17% annually, driven mainly by funding supplies, banking products, customer capital management and revenue. Net procurement revenue as a percentage of assets amounted to 0.85% in the quarterly benefits from the differentiation of revenue sources. In total in 2024, Piraeus Bank’s supply revenue amounted to EUR 635 million.
At Eurobank, net revenue from fees and supplies were raised by 22.4%, or 13.5% excluding the Hellenic Bank (led to € 48 million) compared to 2023 and amounted to EUR 666 million. The increase in supplies revenue was the result of network revenue, lending and property management and corresponds to 73 basis points on total assets, compared to 69 basis points in 2023.
Alpha Bank had 2024 supplies revenue increased by 12% per year, to EUR 420 million (from 37.2 million in 2023), as a result of higher card and payment procurement as well as the strong development of portfolio management supplies and bancassurance supplies. In the fourth month, net commissions revenue was 5.2% on a quarterly basis and stood at € 114.4 million, as a result of increasing new disbursements as well as portfolio management supplies.
For the National Bank, net commissions revenue remained on a steady growth, increasing +7% on a quarterly basis and +12% on an annual basis in 2024, up to EUR 427 million, almost 60m. on assets versus 51 MB in 2023. This mainly reflects the increase in retail supplies by +15% annually, with the spearhead of investment products ( +47% on an annual basis), with a dramatic increase in the market share share of mutual funds (bond funds: +6 AM: +4 am). In corporate banking, supplies also increased by +6% annually, reflecting funding supplies ( +14% annually).