In fact, depending on the bank, the increase in revenue of this category can reach up to +66.67% within four years. The only reason that overall the increase stays close to 38.29% and is not even bigger, is the smaller increase that Alpha Bank had and it holds the systemic four. Amounts that come directly out of the traders’ wallets, charging almost every transaction. It should be mentioned that the income of banks does not only increase when fees become more expensive, but also when the number of transactions increases. In the four years under review, the economy picked up speed and the figures show a significant increase in transactions, thus more commission payments for the banks.
However, pressure to reduce transaction costs continues from both the government and customers, which seems to be having an effect. Piraeus Bank has already announced that it is proceeding with a new reduction, by 50%, in the invoice of charges of the interbank service IRIS payments for professional use. The reductions in Piraeus Bank’s fees are expected to pressure the others to proceed with reductions in their tariffs.
At the same time, Piraeus waives the commission for outgoing credit transfers of up to 15,000 euros from an individual through Phone Banking, as well as the commission for the payment of another bank’s credit card by an individual through Phone Banking. Commission reductions are also expected from the passage of the subscription model in banks. Eurobank was the first to announce the evolution of Eurobank My Advantage Banking with a reduction in fees in many daily transactions, such as bill payments, sending or receiving remittances, issuing/reissuing cards, etc. However, all banks have similar packages, with the difference that at the moment their selection is optional. Although for now, subscription packages seem to bring down overall fees, no one can guarantee that this will not change when the majority of traders switch to them.
WHAT DID THEY PUT AT THE CASHIER THE FOUR SYSTEMIC
OR Bank of Piraeusreported net commission income at €179m in Q2 2024, up 27% quarter-on-quarter and 32% year-on-year. Growth in the quarter was driven by card operations, financing commissions, funds transfers (imports/exports, remittances, checks), and client funds management. Certain initiatives and partnerships undertaken by the bank in the card space generate additional revenue. Net commission income stood at 325 million euros in the semester 2024.
For her Eurobanknet fee and commission income increased by 4.7% year-on-year in the first half of 2024 and amounted to 283 million eurosfrom 270 million euros in the corresponding half of 2023, mainly due to revenues from Network operations and Asset Management, corresponding to 71 units based on total assets.
From the National Bank announced commission income growth of +15% YoY and 6% QoQ. In euros, it was 100 million in Q1 and about 106 million in Q2 2024, total 205 million euros for the first half of the year. That is, an increase of 15.17% from the 178 million euros of last year’s first half.
According to the bank, it reflects the increased volume of transactions, with double-digit growth rates in all individual commission categories, particularly in commissions from investment products and the granting of loans, with the latter benefiting from the recovery in new loan production. The number of transactions increased by +10% year-on-year, as a result of which digital channels grew by +22% year-on-year.
H Alpha Bank announced net fee income amounted to €100.1 million in the second quarter of the year, up 3.5% quarter-on-quarter due to increased assets under management AUMs and enhanced trading activity, outperforming the initial estimate. In the first half of the year, net income from fees and commissions reached 196.9 million eurosincreased by 13.7% from the 173.1 million euros of the first half of 2023.
Evolution of revenues from commissions of systemic banks 2021-2024
| Bank | First semester 2024 | First semester 2023 | Difference 2023-2024 | First semester 2022 | First semester 2021 | Difference 2021-2024 |
| Bank of Piraeus | 325 million | 263 million | +23,57% | 227 million | 195 million | +66,67% |
| Eurobank | 283 million | 270 million | +4,7% | 246 million | 209 million | +35,41% |
| National Bank | 205 million | 178 million | +15,17% | 170 million | 138 million | +48,55% |
| Alpha Bank | 196.9 million | 173.1 million | +13,7% | 204.3 million | 187.6 million | +4,96% |
| Total | 1.009 billion | 884.1 million | +14,23% | 847.3 million | 729.6 million | +38,29% |
Source: Bank results for the first half of 2021-2024
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