National Bank Of Greece S.a. · ATHEX:ETE
National Bank Of Greece — FY2021 Earnings Presentation
52 slides from National Bank Of Greece's earnings presentation, Mar 16, 2022
Slide 1: FY21 Financial Results
FY21 Financial Results 16 March 2022
Slide 2: Table of Contents
Table of Contents 1 Key Highlights 2 Financial Results 3 Macro 4 ESG Framework 5 Transformation Program Update 6 Appendix
Slide 3: Key Highlights
NATIONAL BANK OF GREECE 1 | Key Highlights
Slide 4: NBG FY21 Group financial highlights: outperformance in all key targets
NBG FY21 Group financial highlights: outperformance in all key targets FY21 PAT cont. ops FY21 COP CoR €833m €450m €265m 96bps up +41% yoy up +40% yoy, reflecting core income growth and decisive (68bps in 4Q21) cost cutting NPEs €2.1b CET1 3 Personnel Costs 1 -11.7%yoy 16.9% Net NPEs at €0.5b NPE ra
Slide 5: Annual OpEx costs slashed by c€200m in 3 years, driving sharp C:CI reduction
Annual OpEx costs have been slashed by c€200m in 3 years, driving a sharp C:CI reduction Domestic headcount & branches | C:CI 1 Personnel & G&As costs (€ m) | Domestic Branches (#) -123 461 389 366 338 HR cost -€139 (-26%) FTEs (#) 536 -1.8k 492 C:CI (%) 451 -13ppts 396 9.2 7.1k at Bank level G&As 8
Slide 6: NPE exposure reduced by half during 2021 leaving residual net NPE exposure of €0.5b
NPE exposure reduced by half during 2021 leaving a residual net NPE exposure of €0.5b NPE flow¹ (€ b) NPE decomposition¹ (€ b) FNPEs >30dpd & other Net NPEs 1.6 0.5 impaired 4.3 FNPE <30dpd 3.7 2 4.3 1.6 0.4 90+ dpd 0.3 2.1 c40% of 0.7 Gross NPEs 2.1 1.7 1.2 0.2 NPE stock <30dpd 0.8 2.1 2.2 2.2 1.1
Slide 7: CET1 and CAD at 16.9% and 17.5%; CAD at c19% pro forma Ethniki and EVO
CET1 and CAD at 16.9% (+c120bps yoy) and 17.5%; CAD at c19% pro forma Ethniki and EVO FY21 Capital movement1 Total capital incl Ethniki +76bps organic Insurance and Evo growth merchant acquiring c19% +c1.5% +c1.2% 17.5% CAD 16.7% -c0.6% -c0.5% -c0.5% CET1 FL: 14.9% 16.9% CET1 FL: 12.8% CET1 15.7% CA
Slide 8: Digital banking continues to demonstrate impressive results
Digital banking continues to demonstrate impressive results capturing market dynamics ONBOARD ENGAGE CROSS-SELL ONBOA RD Digital subscribers (m) Digital active users (m) Digital sales (000s, cumulative) Registered YoY (%) YoY (%) subscribers 3.5 3.3 +15% 3.2 3.1 Individuals 3.0 2.9 2.9 12m active us
Slide 9: 2021: A year of achievements acknowledged by the market
2021: A year of achievements acknowledged by the market Partnerships “Bank of the Year in Greece 2021” by The Banker magazine • Apple pay: cooperation with Apple by offering contactless and electronic payments with Apple mobile devices • eBay: strategic partnership with eBay offering a host of benef
Slide 10: A strong start to 2022 against a turbulent international backdrop
A strong start to 2022 against a turbulent international backdrop Greek GDP grew by a solid 8.3% in 2021 providing a strong starting point for 2022 Total turnover of enterprises, retail Greece’s economic with a positive carry-over effect on 2022 GDP growth of about 1.5 pps trade volume, goods export
Slide 11: Building on strong 2021 momentum, maintain FY22 guidance
Building on strong 2021 momentum, maintain FY22 guidance for profitability with overperformance on capital and asset quality Profitability | €m Asset quality¹ | €b Capital | % Coverage% 62.8% 70.1% 77.5% >80% FY21 capital pro forma for Ethniki and merchant acquiring, already NPE% 13.8% above FY22 gu
Slide 12: NBG 2024 Key Financial Targets
NBG 2024 Key Financial Targets: delivering a clean balance sheet, a well capitalized Bank and returning value to the shareholder on the back of strong recurring profitability Drivers and Actions 2021 2024T • NPE clean up largely completed Clean Balance • Organic flows to remain negative, supported b
Slide 13: Financial Results
NATIONAL BANK OF GREECE 2.| Financial Results
Slide 14: Strength across key P&L lines drives FY21 COP to €450m
Strength across key P&L lines drives FY21 COP to €450m (+40%), while FY21 PAT (cont. ops.) reaches €833m P&L Highlights P&L | Group FY21 Group PAT (cont. ops.) reaches €833m, up by 41% yoy, €m FY21 FY20 YoY 4Q21 QoQ NII 1 212 1 179 +3% 308 -0% driven by COP up by 40% to €450m. Strong core operating
Slide 15: Sustained NPE reduction drives NPE ratio to 6.9%; best in class capital buffers
Sustained organic and inorganic NPE reduction drives NPE1 ratio to 6.9%; best in class capital buffers further enhanced Asset Quality, Liquidity & Capital Highlights Key P&L Ratios | Group NPE stock¹ at €2.1b or €0.5b net of provisions; NPE ratio¹ at 6.9% 4Q21 3Q21 2Q21 1Q21 4Q20 • Organic NPE flows
Slide 16: FY21 group COP of €450m reflects NII resilience, fee growth and cost containment
FY21 group COP of €450m (+40% yoy) reflects NII resilience, fee income growth and sustained cost containment Group core operating profit bridge FY21 (€ m) Group operating profit decomposition FY21 (€ b) COP (€m) 323 450 +40% yoy OpEx +40% yoy COP margin (bps) 113 162 +50bps yoy -6% yoy Operating pro
Slide 17: NII resilience (+3% yoy), supported by PE loan expansion and lower funding costs
NII resilience (+3% yoy), supported by PE loan expansion and lower funding costs Domestic NII (€ m), NIM & CoR (bps) Domestic NII breakdown (€ m) qoq drop due to +3% yoy Flat qoq NIM Frontier senior 232 223 bond 214 220 210 211 213 203 1,107 1,145 291 292 NII 250 244 97 104 118 109 92 CoR 39 Incl. F
Slide 18: Domestic PE loan additions at €1.4b fueled by disbursements of c€5b
Domestic sector-high PE loan additions at €1.4b are fueled by loan disbursements of c€5b, +34% yoy Greek loan evolution | performing loans (€ b) Loan disbursements¹ (€ b) +34% yoy excl Covid-19 programs Net loans (+59% retail, 25.5 25.6 25.7 25.5 28.9 €3.3b €4.6b €4.9b +30% corporate) €25.8b excl. F
Slide 19: PE lending yield normalization is bottoming out
PE lending yield normalization is bottoming out, remaining above 300bps Greek PE lending yields (bps) Greek forborne & PE yields, NPE NII % 5.0% 4.6% Total 324 318 312 308 307 Dom. NPE NII net of 4.4% 4.4% 4.4% Performing cash collected and provisions / Dom. NII % (ytd) at 4.1% post Frontier 772 769
Slide 20: Deposit growth continues spurred by strong economic rebound
Despite negative real rates, deposit growth continues spurred by the strong economic rebound Greek deposit yields (bps) Greek deposit evolution (€ b) 23 80% 86% Core deposits/total +€4.6b 51.6 +9.7% yoy 49.6 49.6 21 47.0 46.6 7.3 Time 8.8 8.0 -€2.2b 16 9.6 9.3 -23.4% yoy 15.6 13 13 14.2 Sight & 14.5
Slide 21: FY21 Fees (+10% yoy) driven by origination, intermediation, card and digital
FY21 Fees (+10% yoy) driven by sustainable growth in origination, intermediation, card and digital fees Domestic fees (€ m) Domestic retail fees decomposition (€ m) Fees/Assets 35bps 35bps 35bps 35bps YoY YoY 269 +10% 154 +10% 244 140 32 +14% Intermediation & 28 50 other +17% 83 +10% 43 Bancassuranc
Slide 22: FY21 HR costs (-12% yoy), absorb increasing depreciation
FY21 HR costs (-12% yoy), absorb increasing depreciation due to strategic IT investment; C:CI nearly -6ppts yoy OpEx by category (€ m) Domestic Branch evolution (#) Domestic Group -51 527 branches FY21 FY20 Yoy 2yrΔ¹ FY21 FY20 Yoy 2yrΔ¹ 461 Personnel 396 451 -12.1% -19% 434 491 -11.7% -18% 389 G&As
Slide 23: FY21 organic flows of -€0.7b combine with Frontier II, reducing NPEs
FY21 organic flows of -€0.7b combine with Frontier II, reducing NPEs by €2.2b yoy; NPE ratio at €6.9% Domestic NPE stock per category | 4Q21 (€ b) NPE balance change (€ m, Bank) o/w: €0.4b or FNPE & other 35% <30dpd impaired <90dpd 1.9 90+dpd 0.8 o/w: €0.3b or 1.2 1.0 NPE inflows (+) 258 c60% <30dpd
Slide 24: NPE formation negative across lines of business
NPE formation negative across lines of business Mortgages (€ m) Consumer (€ m) NPE change1 (€ m) 8 8 2 Organic -24 -15 -70 -96 -52 -7 -127 -99 -132 -197 -195 -154 Organic -211 -215 -33 -316 -46 Inorganic -4326 -15 -321 4Q20 1Q21 2Q21 3Q21 4Q21 -77 4Q20 1Q21 2Q21 3Q21 4Q21 -5682 -1,293 1 Inorganic SB
Slide 25: Nearly 40% of domestic NPEs likely to cure; coverage nears 80%
Nearly 40% of domestic NPEs of €2.1b to comprise likely to cure FNPEs <30dpd; coverage nears 80% Domestic 90dpd ratios and coverage | 4Q21 Domestic 90dpd – NPE bridge (€ b) | 4Q21 Collateral 79% 8% 87% 68% 68% coverage1 12% 161% 6% 90dpd ratio 2.1 182% +0.8 +0.0 +0.2 3% 3.7% 3.9% 2% 1.1 90dpd 142.4%
Slide 26: Loan portfolio rebalancing: gradual substitution of S3 for S1/S2 loans
Loan portfolio rebalancing involving a gradual substitution of S3 for S1/S2 loans Group gross loan stage evolution (€ b) Group S2 ratio and coverage (%) Group S3 ratio and coverage (%) Stage 3 Δ yoy 4.4 4.1 3.8 2.2 -2.2 o/w: €2.4b FPEs €2.2b SICR Stage 2 €0.1b +30dpd 4.6 4.4 4.6 4.7 +0.1 Including F
Slide 27: Ex moratoria client performance remains better than expected
Ex moratoria client performance remains better than expected despite gradual conclusion of supportive measures Support measures Ex-moratoria client breakdown (€ b) Defaulted/ 6% nm 6% 1% nm <4% • State subsidy program: Re-defaulted 3.0 as of Feb.22 Original PE - Gefyra I to primary residence mortgag
Slide 28: Funding cost marginally negative aided by ECB measures
Funding cost marginally negative aided by ECB measures and systemic liquidity abundance Eurosystem funding (€ b) NBG Funding Cost (bps) 41 31 19 12 LCR: 242% 7 0 2 1 0 -2 Repo funding : €1.2b Blended -17 -50 -67 -67 -65 -65 -64 -64 ECB¹ 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Funding structure
Slide 29: Fulfilled 2021 binding MREL target without further issuance
Fulfilled 2021 binding MREL target without further issuance MREL requirements vs capacity MREL targets and resources | % RWAs • Strong track record and recurrent presence in the 18.9% debt capital markets, issuing the first green senior 18.0% preferred bond in Greece (€500m) in 4Q20 1.4% Senior pref
Slide 30: Domestic deposit growth continues, with core deposit substitution effect
Domestic deposit growth continues, accompanied by a sustained time for core deposit substitution effect Deposit evolution by geography (€ b) NBG domestic deposit flows (€ b) YoY Group 49.1 48.7 51.6 51.6 53.5 +9.0% 4.7 4.6 3.4 1.5 1.1 0.2 0.5 2.1 2.1 2.0 1.9 -7.0% SEE & 2.1 Other 51.5 +9.7% -2.2 49.
Slide 31: Macro
NATIONAL BANK OF GREECE 3| Macro
Slide 32: The Greek economy entered 2022 in high gear
The Greek economy entered 2022 in high gear, with key activity metrics exceeding their pre-pandemic levels in 2021 A robust and broad-based turnaround in economic activity Activity components in FY21 vs FY19 48000 €m y-o-y, % 20 46000 15 Fixed capital investment 18.8 44000 10 5 42000 0 Goods exports
Slide 33: Business activity rebounded strongly, supported by domestic demand and exports
Business activity rebounded strongly, supported by strengthened domestic demand and buoyant exports, and is expected to sustain the growth momentum in 2022 despite the deteriorating international outlook Strong turnaround in corporate profitability Impressive recovery in business T/O – €14.4b above
Slide 34: Strong disposable income growth and resilient labor market cushion inflation risks
Strong disposable income growth in 2021, resilient labor market and sizeable liquidity buffers should help to cushion increasing inflation risks, now amplified by severe geopolitical tensions. ECB will remain supportive Surging energy prices will keep inflation at very high Real disposable income tr
Slide 35: ESG Framework
NATIONAL BANK OF GREECE 4| ESG Framework
Slide 36: Pursuing efforts and targets across ESG strategic themes
We are pursuing efforts and targets across ESG strategic themes ESG strategic themes and recent efforts Selected ESG metrics (2021) 1. RES Corporate PEs 1 Lead the market in sustainable energy financing: Continued financing of Greek renewable energy projects through proceeds of 1st Green bond (€500m
Slide 37: Strong participation and recognition of our ESG activity
Strong participation and recognition of our ESG activity ESG ratings and indices Selected ESG-related awards (2021) ESG rating 2019 2020 2021 Top 10 Employer – Greece ESG rating BBB BBB BBB Environment score 1 2 2 Social score 2 2 2 Gold Award for the Promotion of the Innovation Ecosystem – Governan
Slide 38: Transformation Program Update
5 Transformation Program Update
Slide 39: Transformation Program acts as a competitive advantage supporting change
Transformation Program acts as a competitive advantage supporting change ENVIRONMENT, SOCIETY & GOVERNANCE (ESG) Our Transformation Program (launched ~2.5 years ahead of peers) has evolved HEALTHY EFFICIENCY BEST BANK into a competitive advantage BALANCE SHEET & AGILITY FOR OUR CLIENTS (HBS) (ENA) (
Slide 40: Transformation Program supports move towards new business and operating model
Transformation Program supports move towards a new business and operating model Selected achievements in 2021 Key metrics 2018 2019 2020 2021 YoY HEALTHY • Completion of Frontier securitization and migration. Bank NPE (€ b) 15.4 10.6 4.2 2.1 -50% BALANCE • Set up of hubs in branch network for restru
Slide 41: Transformation Program supports move towards new business and operating model
Transformation Program supports move towards a new business and operating model Selected achievements in 2021 Key metrics 2018 2019 2020 2021 YoY DIGITAL • Introduction of new digital products & Registered subscribers 2.0 2.4 3.0 3.5 +15% LAYER functionalities for individuals, including: (m) ‒ Perso
Slide 42: Transformation Program supports move towards new business and operating model
Transformation Program supports move towards a new business and operating model Selected achievements in 2021 TECHNOLOGY & • Continuation of efforts for core process reengineering (e.g., Corporate lending process) and centralizations (e.g., Small Business PROCESSES (TEP) lending and Trade Finance).
Slide 43: Pipeline of new digital functionalities creating a new competitive advantage
Pipeline of new digital functionalities creating a new competitive advantage ONBOARD ENGAGE CROSS-SELL ONBOA RD • Existing customers digital • Account aggregation • Cards (debit/ virtual prepaid/ credit) onboarding • Personal Financial Management (PFM) • Accounts & time deposits • New customers’ dig
Slide 44: Appendix
NATIONAL BANK OF GREECE 6| Appendix
Slide 45: Group Balance Sheet & P&L
Group Balance Sheet & P&L Balance Sheet¹ | Group P&L¹ | Group €m 4Q21 3Q21 2Q21 1Q21 4Q20 €m 4Q21 3Q21 2Q21 1Q21 4Q20 Cash & Reserves 15,827 11,587 11,001 10,587 9,313 NII 308 308 300 296 316 Interbank placements 3,639 3,152 2,906 3,037 3,478 Net fees & commissions 74 74 70 68 69 Securities 15,251 1
Slide 46: Geographical segment P&L: Greece & International
Geographical segment P&L: Greece & International Greece International¹ €m 4Q21 3Q21 2Q21 1Q21 4Q20 €m 4Q21 3Q21 2Q21 1Q21 4Q20 NII 292 291 283 280 296 NII 16 18 17 16 21 Net fees & commissions 70 69 66 64 65 Net fees & commissions 4 5 4 4 4 Core Income 362 360 349 343 360 Core Income 20 22 21 21 25
Slide 47: ESMA Alternative Performance Measures (APMs), definition of financial data and ratios
ESMA Alternative Performance Measures (APMs), definition of financial data and ratios used The 4Q21 Financial Results Press Release contains financial information and measures as derived from the Group and the Bank financial statements for the year ended 31 December 2021 and for the year ended 31 De
Slide 48: Definition of financial data, ratios used and alternative performance measures
Definition of financial data, ratios used and alternative performance measures Name Abbreviation Definition Assets held for sale -- Non-current assets held for sale Balance Sheet B/S Statement of Financial Position Cash & Reserves -- Cash and balances with central banks Common Equity Tier 1 Ratio CE
Slide 49: Definition of financial data, ratios used and alternative performance measures
Definition of financial data, ratios used and alternative performance measures Loan / Lending Yield Annualized (or annual) loan interest income over gross performing exposures Loans-to-Deposits Ratio L:D ratio Loans and advances to customers over due to customers, at year end or period-end Minoritie
Slide 50: Important Notice – Disclaimer
Important Notice – Disclaimer The information, statements and opinions set out in the 4Q21 Results Press Release and accompanying discussion (the “Press Release”) have been provided by National Bank of Greece S.A. (the “Bank”) (together with its consolidated subsidiaries (the “Group”)). They serve i
Slide 51: Important Notice – Forward Looking Information
Important Notice – Forward Looking Information Forward Looking Statements reflect knowledge and information available at the date of the Press Release and are subject to inherent uncertainties and qualifications and are based on numerous assumptions, in each case whether or not identified in the Pre
Slide 52: Contact details
Contact details Christos Christodoulou Greg Papagrigoris Group CFO Group Head of IR +30210 334 3051 +30210 334 2310 cchristodoulou@nbg.gr papagrigoris.gr@nbg.gr Maria Kanellopoulou Panagiotis Alevras Investor Relations Officer Investor Relations Officer +30210 334 1537 +30210 772 7292 mkanellopoulou
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