What BN reported on August 4 and September 12, 2026 – Optima bank is capital deficient, the BoG imposes a capital increase of 400 to 500 million with a price of 9.6 euros
Optima Bank will proceed to strengthen its capital base over the medium term, estimates UBS in a report, which in Greece constitutes the main investment bank collaborating with Piraeus Bank. It should be noted that BN (BANKINGNEWS) with two investigative reports on August 4 and September 12, 2026 had revealed that Optima bank is heading toward a share capital increase. The Swiss bank, which lists Piraeus Bank and Optima as its top choices in Greece, initiated coverage on the latter with a target price of 16 euros, anticipating 9-month financial results on November 11 as a catalyst. Optima Bank – which is set to absorb the brokerage firm Euroxx – offers UBS a diversified exposure to an attractive Greek banking market along with robust corporate lending growth. Specifically in its report, UBS considers that the bank will continue to surprise positively, having raised its guidance in the half-year results.
According to UBS, it offers an attractive combination of high growth (earnings per share up 22% over the 2025–2028 period) and sector-dominant profitability with a sustainable return on tangible equity (ROTE) of 24%. Furthermore, Optima stands out with the highest growth prospects in the sector, backed by a solid track record of gaining loan market share (3.4%), which is set to reach 5.3% by 2030, according to the Swiss bank. The bank's management raised its 2026 earnings guidance above 210 million euros and return on equity to 25% from 24%, while UBS projects profits of 222 million euros and return on equity of 27.3%. The foreign institution sees further upside potential, especially in the net interest margin (NIM) within a high interest rate environment, as it is one of the banks most sensitive to rate adjustments. A potential limiting factor is the relatively reduced CET1 ratio at 11.8%, although UBS expects a strengthening of the capital base over the medium term, while no deferred tax assets exist within the bank's capital structure.
Capital increase through Significant Risk Transfers (SRTs)?
To the question of whether Optima can grow its loan portfolio by more than 1 billion euros by 2030, UBS responds affirmatively, adding that the loan market share will rise to 5.3% from 3.34%. The bank is outperforming its 2026 operational plan and has increased net credit expansion to 1.35 billion euros from 1.1 billion euros, while UBS forecasts an annual growth of 1.3 billion euros through 2030, against management estimates of at least 1 billion euros annually. As UBS points out, "loan growth in the second quarter of 2026 was very strong, reaching 37% on an annual basis, reinforcing our forecast for an annual growth rate of 17.6% from 2025 to 2030." UBS also responds affirmatively to whether the bank possesses sufficient capital to execute its growth plans – although, as noted earlier, it expects a capital strengthening. According to UBS calculations, assuming a payout ratio of 30% and factoring in the acquisition of Euroxx (which absorbs 55 basis points), the CET1 ratio will fall to 10.8% before gradually recovering to 12.9% by 2030. Optima issued an AT1 bond in June, while retaining room for further optimization including Significant Risk Transfer (SRT) transactions, which could boost the CET1 ratio by 100 basis points. Through Significant Risk Transfers, banks retain loans on their balance sheets while transferring risk to third parties via derivative instruments. Additionally, in the second quarter of 2026, organic capital generation was sufficient to finance the strong growth of risk-weighted assets (RWA).
What BN reported on August 4 and September 12, 2026
Optima bank is capital deficient, the BoG imposes a capital increase of 400 to 500 million with a price of 9.6 euros. Optima bank will require a capital raise of 400 to 500 million to justify its valuation and growth trajectory as well as acquisitions... and it appears that the Bank of Greece imposed the capital increase as a matter of urgency. A capital injection for Optima bank is a one-way street, partly because after absorbing Euroxx, Optima bank will feature a CET1 ratio of approximately 10.85%, making capital reinforcement mandatory, BN emphasized as early as August 4, 2026. Moreover, a significant issue for Optima bank is not merely the 400 to 500 million euro raise, but also the subscription price, which will demand a substantial discount of nearly 20%. All these parameters will naturally be weighed by the major key shareholders. Based on available indicators, the issue price for the capital increase should land within the 9.6 euro zone.
Optima bank with 12 P/E and P/BV of 3.29
Optima bank holds a market capitalization of 2.60 billion, yielding a P/E ratio of 2.60 billion market cap divided by 210 million in earnings = 12 P/E. Based on projected 2027 earnings of approximately 240 million euros, the P/E ratio shapes up at 11. Optima bank holds a market capitalization of 2.60 billion, yielding a P/BV ratio of 2.60 billion market cap divided by 789 million in tangible equity = 3.29.
Conclusion
There is no doubt that Optima bank is a highly expensive bank in stock market terms, making a new capital increase imperative.
Dimitris Pafilas
dpafilas@yahoo.com
www.bankingnews.gr
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