Cyprus banks backed by stronger outlook for Greek lenders

Banks operating in Cyprus, including Eurobank and Alpha Bank Cyprus through their Greek parent groups, stand to benefit from improving conditions in the Greek banking sector, as separate assessments by Fitch Ratings and UBS pointed to stronger growth prospects, resilient profitability and further lending expansion despite lingering structural risks.

Fitch said its decision to upgrade Greece’s operating environment score to ‘BBB’ from ‘BBB-‘ reflects improved business prospects for banks...