Banks: Interest Income Over €8.5 Billion in 2024, Betting on Stability for 2025

The resilience of bank interest income was evident in 2024, with loan growth and supply-related revenues acting as a buffer against declining rates. As the European Central Bank (ECB) monetary policy meeting approaches tomorrow (March 6, 2025), forecasts indicate another 0.25% rate cut. This places banks’ interest income at the center of attention for the year, with maintaining high levels being the primary focus. If the ECB proceeds with its fifth consecutive rate cut since September and sixth overall since June, the Euro’s base rate will drop to 2.50%. Market analysts predict further reductions to 2% or even 1.75% by year-end. In 2024, the four major banks reported net interest income totaling €8.667 billion. Despite ECB rate cuts, interest income remained resilient due to increased lending, bond revenues, and effective risk hedging strategies. Specifically, Piraeus Bank’s Q4 net interest income stood at €514 million, down 3% quarter-over-quarter but supported by higher loan volumes and deposit cost discipline. For the year, it totaled €2.158 billion. Eurobank saw a 15.3% annual increase in net interest income to €2.507 billion, driven by loan issuance and international activities. Alpha Bank’s net interest income slightly decreased to €1.646 billion in 2024, while National Bank reported a 4% increase to €2.356 billion, bolstered by strong loan portfolio expansion.