Bank lending to Greek owners grows as uncertainty clouds Chinese leasing

At the same time, caution is emerging in the market regarding Chinese lessors, amid shifting geopolitical dynamics.

According to the latest report by Petrofin Research, led by Ted Petropoulos, total loans to Greek shipowners – both drawn and committed but undrawn – booked globally and in Greece, reached US$53.5Bn at the end of 2024. This marks a 5.0% year-on-year increase, reversing the downward trend seen in the previous two years, when loan volumes stood at US$50.9Bn in 2023 and US$51.9Bn in 2022.

“Over the last 10 years, there has been a reassessment of appetite for asset-based finance by major, mostly European, banks, which led to a significant exodus from Greek ship finance. However, the growth seen in 2024 bodes well for the future, as the banks that remain are now firmly committed to shipping,” said Petrofin Research.

Greek banks lead the growth

Among the top lenders to Greek shipowners, UBS maintained its lead with a 9.7% share of the Greek shipping loan portfolio, following its acquisition of Credit Suisse. Following UBS, the next four positions in the top-five ranking are occupied by major Greek banks. Eurobank holds an 8.6% share, followed by Piraeus Bank at 8.4%, National Bank of Greece at 7.9%, and Alpha Bank at 7.4%.

Notably, Greek banks recorded the strongest year-on-year growth, with a 17.5% increase in their exposure. “Greek banks were able to offer improved loan terms and attracted more business from Greek owners, including newbuilding finance,” Petrofin noted, adding further growth is expected.

Among individual institutions, the newly formed Attica-Pancreta Bank posted the largest increase in shipping portfolio year-on-year, alongside Macquarie and China Merchants Bank Leasing. The latter rose to seventh place in the Greek shipping loan ranking, holding a 5.6% share, up from 11th place at the end of 2023.

Geopolitical shifts affect Chinese leasing

In the leasing segment, Petrofin highlighted Chinese leasing houses have been negatively impacted by the ongoing US-China trade tensions, with current financing largely limited to domestic shipowners. “The vast majority of Western owners, including Greeks, are sitting on the sidelines, waiting for the dust to settle,” said Petrofin.

US-listed owners also appear cautious about placing new orders at Chinese shipyards, increasingly shifting their focus to South Korea and Japan.

One emerging trend is the concern among Greek owners using Chinese leasing structures, where the nominal vessel owner is the Chinese lessor. As a result, many are now refinancing their Chinese leases through European and Greek banks. This has given rise to a robust new line of business – refinancings, Petrofin added.