- In 2024, they are projected to increase their excessive profits significantly, setting new records despite rising costs and global instability.
- Greece ranks first in Europe for the highest transaction fees. The market operates unchecked with the government’s backing.
- They earned €1.8 billion from unreasonable and outrageous fees in 2023 and €1.5 billion in just six months of 2024.
- It’s outright theft with the interest rates! The banks, saved by taxpayers’ money, give nothing back to society.
- The fines from the Competition Commission are a joke, as it pretends to regulate them.
- The so-called reductions in fees are just a façade. Here’s the real situation.
Research by Data Journalists
Basic banking services have become a burden for consumers in Greece. Fees for routine transactions, such as ATM withdrawals and electronic money transfers, are escalating into a real financial strain, significantly higher than in other European countries.
The excessive profits banks derive from these fees are not only “squeezing” individual consumers but also small and medium-sized enterprises (SMEs), which are the driving force of the Greek economy
A study by the international Consumers’ Organization highlighted significant disparities in banking charges among member states, with Greece ranking at the highest level.
In 2023 alone, banks generated €1.8 billion in revenue from fees
Official data reveals that while banks reap enormous benefits, consumers and businesses face a heavy financial burden. In 2023, Greek banks reported after-tax profits of €3.8 billion, up from €3.4 billion in 2022 (an increase of 11.4%). This growth was positively influenced by an increase in net interest income, following the European Central Bank’s (ECB) rate hikes.
Net interest income soared by 51.5%, reaching €8.5 billion, while net fee income rose by 8.3%, exceeding €1.798 billion—all within a single year. The banks’ revenues in these two areas are expected to continue their rapid growth this year. In the first half of 2024, fee income surpassed €1.457 billion.
Slap on the wrist fines from the Competition Commission
The €41.612 million fine imposed by the Competition Commission at the end of 2023 for the fees charged to consumers by these institutions is a result of a compromise. The total cumulative fine amounts to no more than 2.5% of their total fee revenues. The Independent Authority accepted the settlement proposals from the banks and the Hellenic Bank Association.
Following the agreement between the Competition Commission and the banks, the fines imposed, based on each institution’s turnover, are as follows:
- Piraeus Bank: €12,993,482.86
- National Bank: €9,978,799.18
- Alpha Bank: €9,110,682.91
- Eurobank: €7,976,790.63
- Hellenic Bank Association (HBA): €1,553,242.87
Caps for Three + Two Years
Additionally, the Competition Commission requires banks to reduce the fee for cash withdrawal transactions at ATMs using cards issued by other institutions, effective January 1, 2024. The new maximum fees will be as follows:
- Piraeus Bank: capped at €2.00, down from the current €3.00
- National Bank: capped at €1.90, down from the current €2.60
- Alpha Bank: capped at €1.80, down from the current €2.50
- Eurobank: capped at €1.80, down from the current €2.50
These fees must remain at these levels for three years, with the possibility of extending this period for up to two additional years. The Competition Commission will have the authority to impose fines if the banks fail to comply.
Detailed Revenue of Major Banks
Piraeus Bank: Last year, net revenue from fees and income from non-banking activities reached €494 million, with non-banking income accounting for €79 million—a 13.3% increase compared to 2022. However, other revenues fell to €89 million in 2023, down from €775 million in 2022. In the first half of this year, this metric set a new record at €324 million, representing a 44% increase from the previous year. This growth is attributed to loans, credit cards, fund transfers, and asset management.
Eurobank: Fee income for Eurobank rose by 4.81%, totaling €283 million, up from €270 million in the first half of 2023. The largest contributions came from new loans, followed by transactions, credit cards, and wealth management services. Net income from banking fees and commissions increased by 4.95%, reaching €233 million compared to €222 million in the same period in 2023, primarily due to higher revenues from network activities and portfolio management. The ratio of fee and commission income to total assets also improved, rising to 71 basis points from 68 basis points in the first half of 2023. Read here
National Bank of Greece (NBG): The National Bank also experienced a rise in fee income, which increased by 15.2% to €205 million in the first half of 2024, mainly due to higher fees charged in retail banking. The acceleration of economic activity during this period underscored the resilience of the bank’s interest income. Read here
Alpha Bank: Fee income at Alpha Bank totaled €197 million, compared to €173 million in the first half of 2023. This increase is attributed to the continuous growth in assets under management (AUM) and a higher contribution from card and payment fees due to increased activity. Read here
Record Interest Rates
A survey conducted by SAFE (Survey on the Access to Finance of Enterprises) reveals that between April and September 2023, the terms and conditions for granting loans significantly deteriorated. Historically high percentages of businesses reported increases in bank interest rates, along with higher charges, fees, and commissions on bank credit, both in Greece and across the Eurozone.
In response, Greek banks—many of which underwent substantial restructuring during the economic crisis, a burden that was heavily shouldered by the Greek people—defend these fees as essential for maintaining their operations and ensuring compliance with regulatory requirements. They assert that these costs reflect investments in digital infrastructure and security improvements mandated by both national and European regulations.
