National Bank Of Greece S.a. · ATHEX:ETE
National Bank Of Greece — Q4 2024 Earnings Presentation
64 slides from National Bank Of Greece's earnings presentation, Feb 28, 2025
Slide 1: 4Q24 Financial Results
4Q24 Financial Results 28 February 2025
Slide 2: Table of Contents
Table of Contents 01 Financial Highlights 02 BP 2025-27 03 Financial Results in Detail 04 Macro 05 ESG 06 Transformation Program 07 Appendix 2
Slide 3: 01 Financial Highlights
01 Financial Highlights 3
Slide 4: Strong recurring Profitability, double-digit Credit Expansion, increasing Distributions
01 Financial Highlights Strong recurring Profitability, double-digit Credit Expansion, increasing Distributions RoTE | % C:CI | % Loan balances | € b Capital | % PAT | € b PPI | € b Payout ratio | % Core RoTE 17.5% C:CI 31.8% Net Loan €3.1b Payout ratio 50%¹ expansion yoy Core PAT €1.3b +10% PPI €2.
Slide 5: 2024 results outperform guidance, delivering solid results across targets
01 Financial Highlights 2024 results outperform guidance, delivering solid results across targets Guidance Guidance Delivery Financial performance metrics Actual Mar’24 Aug’24 FY24 NIM well above 300bps, P&L KPIs FY24E FY24E FY24 despite lower rates in 2H24 NIM (bps) <290 >300 319 marginally margina
Slide 6: Strong FY24 performance across key P&L metrics
01 Financial Highlights Strong FY24 performance across key P&L metrics Core PAT¹ | € m NII | € m EPS² | € 0.52 1.31 1.44 NIM | bps 169 303 319 TBVPS | € 6.6 7.8 8.5 1,321 2,263 2,356 1,200 1,369 474 FY22 FY23 FY24 FY22 FY23 FY24 Fees | € m Cost of Risk | € Fees / Assets | bps 43 51 58 CoR | bps 70 6
Slide 7: Core retail deposit increase despite significant market share gains in fee-generating FuMs
01 Financial Highlights Core retail deposit increase despite significant market share gains in fee-generating FuMs Deposit¹ mix (%) Assets under Management (€ b) MF Mkt 10% 14% +4pps yoy share (%) Domestic 55.1 55.2 Deposits Bond MF Mkt -€1.0b yoy 16% 22% +6pps yoy (€b) share (%) 21% 20% driven by 2
Slide 8: NBG has regained Investment Grade status from 3 rating agencies
01 Financial Highlights NBG has regained Investment Grade status from 3 rating agencies Credit rating | Sovereign and NBG Sovereign rating evolution Rating Scale Scope BBB Investment S&P/Fitch/ Grade BBB- DBRS Rating & Rating & outlook outlook BB+ Moody’s BB Ba1 Baa2 BB- positive positive B+ BBB- BB
Slide 9: BP 2025-27
02 BP 2025-27 9
Slide 10: 2025-27 key strategic objectives
02 BP 2025-27 2025-27 key strategic objectives Be the best bank for our clients Invest in Technology & People Leverage on market dynamics for credit expansion Lead the sector in IT, digital transformation and on the back of improvement in customer innovation experience and product & service offering
Slide 11: Business Plan macro assumptions
02 BP 2025-27 Business Plan macro assumptions Real GDP yoy growth CPI yoy growth Greek Government Bond 10Y yield aop 2.7% 3.4% 3.2% 2.3% 2.3% 3.1% 3.1% 2.2% 2.0% 2.0% c2% 1.8% 2024A¹ 2025E 2026E 2027E 2024A 2025E 2026E 2027E 2024A 2025E 2026E 2027E RRE prices yoy growth Unemployment rate aop Interes
Slide 12: Key P&L dynamics of the 2025-27 BP
02 BP 2025-27 Key P&L dynamics of the 2025-27 BP • NIM remains at high levels of >280bps, • OpEx contained at a 3Y CAGR of c5% absorbing base rate normalization to c200bps supporting growth and class-leading investments in IT and digital infrastructure • NII >€2.3b in 2027, on robust credit growth o
Slide 13: 2025-27 Business Plan guidance
02 BP 2025-27 2025-27 Business Plan guidance Actual Business Plan 2025 -2027 P&L FY24 FY25E FY27E NIM (bps) 319 >280 >280 NII (€b) 2.36b >€2.1b >€2.3b Fees growth (%) 12% 3Y CAGR >8% OpEx growth (%) 5%¹ 3Y CAGR c5% Financial Cost of Risk (bps) 53 <50 <40 performance EPS² (€) 1.4 c1.3 c1.5 metrics >1
Slide 14: Robust top line performance on the back of strong fee growth and NIM resilience
02 BP 2025-27 Robust top line performance on the back of strong fee growth and NIM resilience NIM, bps 300 • Resilient NIM above 280bps throughout the BP horizon, despite a -200bps reduction in 319 100 benchmark rates -100• NII sensitivity managed through hedging and >280 >280 investment in fixed ra
Slide 15: Disciplined OpEx supporting growth and innovation; CoR normalization continues
02 BP 2025-27 Disciplined OpEx supporting growth and innovation; CoR normalization continues C/I, % 300 • Operating expenses expected at a mid single digit growth (c5% CAGR in the 3Y period) c35% c35% 100 supporting growth and technology investments 31% -100 • New union wage increases and depreciati
Slide 16: Steady state RoTE >14% in 2027 or >18% on a CET1 of 14%
02 BP 2025-27 Steady state RoTE >14% in 2027 or >18% on a CET1 of 14% RoTE1,% c50%² c60%³ c60%³ Payout% • Sustained EPS growth post 2025, 17.5% reflecting higher profitability >14% >18% on • RoTE at a steady state >14% or >18% on >17% on internal CET1 >13% internal CET1 target of 14% internal CET1 t
Slide 17: Corporate segment growth driven by large corporates, SMEs and shipping
02 BP 2025-27 Corporate segment growth driven by large corporates, SMEs and shipping NII drivers Corporate • Net expansion mainly driven by Structured CAGR Finance and Mid-Caps >9% • 3rd party programs (incl. RRF) to expand client base • Expansion in international lending in sectors of expertise c8%
Slide 18: Retail segment to start expanding from 2025 onwards
02 BP 2025-27 Retail segment to start expanding from 2025 onwards NII drivers Retail • Smarter credit criteria and co-funded CAGR products in mortgages >3% • Leading position in embedded banking and strategic partnerships • New credit product offerings (e.g. dual cards, digital short-term loans) c8%
Slide 19: Capital generation supports growth and payouts, maintaining significant buffers
02 BP 2025-27 Capital generation supports growth and payouts, maintaining significant buffers Targeted Group CET1 Ratio evolution, % c10% Capital buffers post payouts of >4% • CET1 above 18% throughout the BP horizon c23% -c3% • Organic capital generation comfortably -c2% absorbs strong credit expan
Slide 20: Strong distribution capacity with increasing payout levels of c60%
02 BP 2025-27 Strong distribution capacity with increasing payout levels of c60% Payout ratio, % >10% Total • Strong recurring organic profitability allows Payout healthy capital distributions to shareholders 8% 1 Yield • Payout levels at c60% from 2025 profits 5% onwards vs 30% paid out last year a
Slide 21: 03 Financial Results in Detail
03 Financial Results in Detail 21
Slide 22: FY24 Group Core PAT at €1.3b (+10% yoy), with better-than-expected top-line resilience
03 Financial Results in Detail FY24 Group Core PAT¹ at €1.3b (+10% yoy), with better-than-expected top-line resilience P&L | Group (€ m) FY24 FY23 YoY 4Q24 QoQ P&L Highlights NII 2,356 2,263 +4% 575 -2% Group Core PAT¹ reaches €1.3b for FY24, on core income resilience (+5% yoy) and sustained Net fee
Slide 23: B/S comparative advantages - CET1 capital, asset quality and liquidity - strengthened
03 Financial Results in Detail B/S comparative advantages - CET1 capital, asset quality and liquidity - strengthened Balance sheet Highlights Key Balance sheet items FY24 9M24 6M24 3M24 FY23 Total Assets (€ b) 75.0 74.3 73.7 72.4 74.6 • FY24 performing loans up by an impressive €3.1b yoy, far outper
Slide 24: Profitability comfortably absorbs strong credit growth and a 50% payout
03 Financial Results in Detail Profitability comfortably absorbs strong credit growth and a 50% payout FY24 capital movement¹ 21.1% +c3.2% CAD 20.2% -c1.4% +c0.1% -c1.5% Payout at 50% of 2024 earnings 19.8% CET1 17.8% 18.3% 2 FY23 FY24 Profitability RWAs Other FY24 before payout Payout FY24 RWAs €37
Slide 25: A stand-out B/S: well-capitalized, highly-liquid, with large share of core deposit funding
03 Financial Results in Detail A stand-out B/S: well-capitalized, highly-liquid, with large share of core deposit funding Group Assets1 (€ b) Group Liabilities1 (€ b) Cash & Interbank 1.7 reserves 5.4 Excess liquidity at €6.4b Interbank 2.7 Higher exposure to fixed income portfolio is a natural hedg
Slide 26: Group Core PAT of €1.3b reflects higher core income and steadily normalizing credit costs
03 Financial Results in Detail Group Core PAT¹ of €1.3b reflects higher core income and steadily normalizing credit costs Group Core PAT¹ (€ m) Group Core PAT¹ (€ m) Yoy -8% 1,321 +10% yoy +4% +12% +5%² 1,200 1,321 +94 +45 +13 +19 +2 +19 1,200 -32 474 PPI: 1,903 2,003 +5% yoy PPI 1,255 CoR: CoR -217
Slide 27: NII & NIM reflect lower rates, but remain at high levels
03 Financial Results in Detail NII & NIM reflect lower rates, but remain at high levels Group NII (€ m), Group NIM (bps) Domestic NII breakdown (€ m) -10bps -27bps NIM¹ (Group) 337 326 322 320 310 qoq from peak 594 578 561 563 553 3M Euribor (avg) -57bps -97bps 396 392 381 qoq from 356 299 peak 623
Slide 28: Performing Loans up by a record €3.1b in 2024; Lending spreads resilient
03 Financial Results in Detail Performing Loans up by a record €3.1b in 2024; Lending spreads resilient Group Performing loan evolution (€ b) Greek PE lending spreads¹ (bps) Group 30.5 31.4 33.6 +10% yoy Total Performing 229 224 221 220 220 Int’l 1.6 1.7 1.8 +8% yoy 31.8 +10% yoy 29.7 Consumer² Gree
Slide 29: Leading market share in Retail Disbursements; Corporate Disbursements increase across sectors
03 Financial Results in Detail Leading market share in Retail Disbursements; Corporate Disbursements increase across sectors Loan disbursements¹ & repayments (€ b) Retail Disbursements market share (%) FY23 FY24 Corporate c31% c32% Disbursements 5.9 7.8 c25% Retail Disbursements 1.1 1.5 Mortgages c1
Slide 30: Improving deposit mix and hedges comfortably absorb deposit spread compression
03 Financial Results in Detail Improving deposit mix and hedges comfortably absorb deposit spread compression Group deposits evolution (€ b) Greek deposit spreads¹ (bps) & NII (€m) Group 57.1 55.6 57.1 57.0 57.6 +€0.5b yoy Demand Int’l 2.0 2.0 2.2 2.2 2.4 390 386 375 350 Spread drops 293 on lower Eu
Slide 31: Switch from net cash position to fixed income securities as ECB rates decline
03 Financial Results in Detail Switch from net cash position to fixed income securities as ECB rates decline Cash & reserves, Net Interbank (€ b) NBG Funding Cost (bps) 378 396 392 381 NBG is a net lender in Excess cash funds 336 356 the interbank market 8.0 6.4 placed in fixed 3M Euribor (avg) 299
Slide 32: Fee growth +12% yoy spearheaded by investment product cross sell and higher lending
03 Financial Results in Detail Fee growth +12% yoy spearheaded by investment product cross sell and higher lending Group fees (€ m) Retail fees¹ (€ m) Corporate fees¹ (€ m) Fees/Assets 51bps 58bps ΥοΥ ΥοΥ ΥοΥ 427 +12% 233 +15% 16 382 26 203 26 +19% 15 153 +6% 21 144 22 12 +4% 153 59 +18% 12 4 7 144
Slide 33: Recurring expenses up by +5% yoy, C:CI resilient at 32%
03 Financial Results in Detail Recurring expenses up by +5% yoy, C:CI resilient at 32% Group C:CI (%) Group headcount (#k) Optimization supported by digital strategy 19.8 implementation Cost/Core income % 31.6 31.8 +0.2pp yoy 7.8 6.3 at Bank level -c350 FTEs in YE24 VES Personnel cost/ core income %
Slide 34: Favorable asset quality trends drive NPE ratio to 2.6%
03 Financial Results in Detail Favorable asset quality trends drive NPE ratio to 2.6% Domestic NPE stock per category | 4Q24 (€ b) NPE balance change (€ b, Bank) o/w: €0.2b or c31% <30dpd o/w: €0.1b or c73% <30dpd NPE inflows (+) 0.1 0.2 0.1 0.1 0.1 0.7 0.6 -0.1 -0.1 -0.1 -0.1 Curings -0.1 -0.0 0.0
Slide 35: FNPEs mostly comprised <30dpd exposures, support curings
03 Financial Results in Detail FNPEs mostly comprised <30dpd exposures, support curings NPE ratios and coverage | 4Q24 Domestic forborne stock (€ b) | 4Q24 Collateral coverage¹ 71% 59% 63% FNPEs <30 dpd 0.3 NPE coverage NPE ratio 3.2% at 98% FPEs 0.7 2.5% 2.6% 2.2% €1.1b FNPEs 31-90dpd 0.0 FNPEs >90
Slide 36: Sector leading coverage levels across stages and sector-leading S2 ratio
03 Financial Results in Detail Sector leading coverage levels across stages and sector-leading S2 ratio Group gross loan stage evolution (€ b) Group S2 ratio and coverage (%) Group S3 ratio and coverage (%) Δ yoy 1.3 1.2 1.2 0.9 -0.3 Stage 3 o/w: €0.7b FPEs €1.5b SICR €0.2b +30dpd Stage 2 3.1 2.6 2.
Slide 37: 04 Macro
NATIONAL BANK @ OF GREECE 04 Macro
Slide 38: Steady economic growth momentum underpinned by increasingly differentiated drivers
04 Macro Steady economic growth momentum underpinned by increasingly differentiated drivers Greece’s economy remains on a steady upward trajectory, with monthly activity Key macroeconomic 180 and financial index, 171 indicators for 4Q24 and January 2025 pointing to a slight acceleration in activity.
Slide 39: Credible growth catalysts to cushion emerging risks
04 Macro Credible growth catalysts to cushion emerging risks Forward-looking indicators point to a steady pace of GDP growth near 2.5% yoy in Greece: Business 60 index, 60 confidence 4Q24 and early 2025, despite weak external environment: indicators point to 3m m.a. 40 40 ─ Economic sentiment firmed
Slide 40: Further increase in household real disposable income to sustain consumption growth
04 Macro Further increase in household real disposable income to sustain consumption growth Unemployment rate at a 8 yoy % 30 Increasing labor income and 24 yoy 15 15-year low and labor force consumer credit bolster €b participation rates at all-time 6 25 household spending, 10 highs, combined with
Slide 41: Corporate activity remains solid with business investment heading to an all-time high
04 Macro Corporate activity remains solid with business investment heading to an all-time high 4 4 Strong production trends 70 70 Industry accounts for 1/2 of the contribution in real GVA growth in pps yoy index and resilient demand 65 65 economy-wide output growth in prospects keep Greece’s 9M24, r
Slide 42: Supportive fiscal and liquidity conditions combined with increasing deployment of RRF
04 Macro Supportive fiscal and liquidity conditions combined with increasing deployment of RRF Primary surplus to exceed the 210 House prices up by 71.4% in 150 150 %GDP %GDP official target of 2.5% of GDP, surplus 3Q24 vs their 3Q17 low but still index, 12 1Q11=100 with debt-to-GDP ratio 185 far be
Slide 43: 05 ESG
05 ESG 43
Slide 44: Commitment to Net-zero by 2050, with interim targets and transition plans in place
05 ESG Commitment to Net-zero by 2050, with interim targets and transition plans in place NBG is the first Greek systemic bank to join PCAF1 and commit to sector-specific targets in the context of the NZBA2 Sector/ Scopes Unit of Reference Scenario / 2022 2024 2030 Delta 2024 Transition Portfolio Co
Slide 45: Creating value for businesses and households, while enabling Greece's transition
05 ESG Creating value for businesses and households, while enabling Greece's transition Leading • NBG Green Bond second issuance (€650m & 45% of outstanding senior bonds) Corporate PE balances to RES producers (€ b) sustainable • Project Finance team with deep energy sector expertise (incl. RES, sto
Slide 46: Role-modelling environmentally responsible practices
05 ESG Role-modelling environmentally responsible practices Operations Governance Data, systems & reporting • Energy-efficient buildings: • Board & Executive oversight: • Advanced ESG data & systems: o Real estate masterplan programme in progress o Board Innovation & Sustainability Committee o ESG36
Slide 47: Long-tradition of contributions to society continued, with impactful initiatives
05 ESG Long-tradition of contributions to society continued, with impactful initiatives Environment • Volunteer Forest Firefighters Programme: Funded by NBG, Latsis Foundation & Martinos Foundation; run by protection Desmos, WWF & HIGGS; equipment for 1,936 volunteers of 50 teams; training for 574 v
Slide 48: Strong participation in ratings / indices, and recognition of our ESG activity
05 ESG Strong participation in ratings / indices, and recognition of our ESG activity and best practices Years of ESG ratings & indices 2022 2023 2024 Comments coverage ESG rating BBB A A 11th ISS Corporate rating C- C- C (Prime) 8th Top 20% banks globally, #1 in Greece ISS ESG score (E | S | G) (1|
Slide 49: 06 Transformation Program
06 Transformation Program 49
Slide 50: Our Transformation Program acts as a competitive advantage for NBG
06 Transformation Program Our Transformation Program acts as a competitive advantage for NBG Corporate & investment banking Retail banking • New corporate client coverage model addressing needs of • RM-based service model for Small Business, Wealth and both Greek and international clientele holistic
Slide 51: Best-in-class Corporate & Investment Banking service and operating model
06 Transformation Program Best-in-class Corporate & Investment Banking service and operating model Corporate • Growing client base of c. 6k Corporate clients across all sub-segments Client (Large Groups, Midcaps, SMEs, Structured Finance, Shipping) Coverage • Specialized RM teams (by sector and comp
Slide 52: Customer-centric Retail Banking service model, focused on sales and service
06 Transformation Program Customer-centric Retail Banking service model, focused on sales and service Retail • Analytics-driven segmentation and commercial actions, driven by central Market shares (FY2024) frontline segment teams New loan disbursements • Branch network focused on sales and customer
Slide 53: Our digital business continues to deliver impressive results
06 Transformation Program Our digital business continues to deliver impressive results Dedicated Est. Est. digital 2023 2024 assets Retail app Business app NEXT app 4.9m downloads 198k downloads 144k downloads 4.6 rating (66k) 4.8 rating (3k) 4.5 rating (3k) Digital KPIs Active users 12M Active user
Slide 54: New Core Banking System (CBS) creates new long-term benefits for NBG
1. EXECUTIVE SUMMARY 06 Transformation Program New Core Banking System (CBS) creates new long-term benefits for NBG Benefits of the new CBS Key milestones 2020 New CBS selection 01 Simplification 02 High parameterization Consolidation product implementations, Flexible software, able to support new 2
Slide 55: 07 Appendix
07 Appendix 55
Slide 56: Balance Sheet & P&L
07 Appendix Balance Sheet & P&L Balance Sheet | Group P&L | Group €m 4Q24 3Q24 2Q24 1Q24 4Q23 €m 4Q24 3Q24 2Q24 1Q24 4Q23 Cash & Reserves 5,380 8,397 8,356 8,307 9,015 NII 575 589 587 606 623 Interbank placements 2,679 2,662 2,573 2,527 2,792 Net fee & commission income 115 108 106 100 109 Securitie
Slide 57: Geographical segment P&L: Greece & International
07 Appendix Geographical segment P&L: Greece & International Greece International €m 4Q24 3Q24 2Q24 1Q24 4Q23 €m 4Q24 3Q24 2Q24 1Q24 4Q23 NII 553 563 561 578 594 NII 22 26 26 28 29 Net fee & commission Net fee & commission 111 104 102 96 106 4 4 4 4 4 income income Core Income 664 667 662 673 700 Co
Slide 58: ESMA Alternative Performance Measures (APMs), financial data and ratios definitions
07 Appendix ESMA Alternative Performance Measures (APMs), financial data and ratios definitions Τhe 4Q24 Financial Results Presentation presents the Financial Results and other basic financial information of National Bank of Greece S.A. (the “Bank”) (together with its consolidated subsidiaries (the
Slide 59: Definition of financial data, ratios used and alternative performance measures
07 Appendix Definition of financial data, ratios used and alternative performance measures Name Abbreviation Definition Assets held for sale -- Non-current assets held for sale Cash and Reserves -- Cash and balances with central banks Combined Buffer Requirement CBR Total CET1 capital required to me
Slide 60: Definition of financial data, ratios used and alternative performance measures
07 Appendix 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/period end, e
Slide 61: Important Notice – Disclaimer
07 Appendix Important Notice – Disclaimer The information, statements and opinions set out in the FY24 Results Presentation and The Presentation includes certain non-IFRS financial measures. These measures are accompanying discussion (the “Presentation”) have been provided by National Bank of presen
Slide 62: Important Notice – Forward Looking Information
07 Appendix Important Notice – Forward Looking Information The Presentation contains forward-looking statements relating to management’s intent, Forward Looking Statements are provided for illustrative purposes only and are not belief or current expectations with respect to, inter alia, the Bank’s b
Slide 63: Contact details
Contact details Christos Christodoulou | Group CFO Greg Papagrigoris | Group Head of IR cchristodoulou@nbg.gr +30 210 334 2310 papagrigoris.gr@nbg.gr Maria Kanellopoulou | Analysts Panagiotis Alevras | Institutional Investors +30 210 334 1537 +30 210 334 3031 mkanellopoulou@nbg.gr Alevras.Pan@nbg.gr
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National Bank of Greece — Q4 2024 Earnings Presentation on 6ix