National Bank Of Greece S.a. · ATHEX:ETE
National Bank Of Greece — Q1 2022 Earnings Presentation
45 slides from National Bank Of Greece's earnings presentation, May 27, 2022
Slide 1: 1Q22 Financial Results
1Q22 Financial Results 27 May 2022
Slide 2: Table of Contents
Table of Contents 1 Key Highlights 2 Financial Results 3 Macro 4 ESG Update 5 Transformation Program Update 6 Appendix
Slide 3: Key Highlights
NATIONAL BANK OF GREECE 1 | Key Highlights
Slide 4: 1Q22 group financial highlights: strong performance continues
1Q22 group financial highlights: strong performance continues 1Q22 PAT cont. ops 1Q22 COP CoR €208m €125m €56m 1Q22 attributable PAT €360m up +32% yoy, reflecting core income growth and lower costs 73bps CoR on a normalization path NPEs €2.0b CET1 FL 2 Personnel Costs 1 -3%yoy 15.1% Net NPEs at €0.4
Slide 5: Positive trends across domains continue into 2022
Positive trends across domains continue into 2022 Profitability | € m Performing loans¹ | € b COP 95 125 +32% yoy 25.5 +6% yoy 24.0 Corporate 15.6 +10% yoy Core Income 364 373 +2% yoy 14.2 Opex -193 -192 -1% yoy Retail 9.8 9.8 +0% yoy CoR -76 -56 -27% yoy 1Q21 1Q22 1Q21 1Q22 Asset quality¹ | €b Full
Slide 6: Reiterate guidance on profitability with outperformance on capital and asset quality
Reiterate guidance on profitability with outperformance on capital and asset quality Profitability | € b Asset quality¹ | € b Coverage% 77.5% 81.8% >80% >80% NPE% 6.9% 6.5% c6% c3% RoTE%² 8.1% c9% c10% NPEs €b 2.1 2.0 1.8 0.7 COP 0.5 0.5 c1.1 FY21 1Q22 FY22 FY24 Core Income 1.5 guidance guidance 1.4
Slide 7: Greece's strong recovery remained on track in 1Q22 despite headwinds
Greece’s strong recovery remained on track in 1Q22 despite headwinds GDP growth continued on a rapid pace in 1Q22 buoyed by: 1Q19 1Q20 1Q21 1Q22 Apr-22 i) a positive carryover effect on GDP growth from 2021 (1.6 ppts Unemployment Robust 18.4% 16.0% 16.4% 12.6% … annualized, +3.5 pps in 1Q22); ii) fa
Slide 8: Fiscal measures and positive labor market trends cushion the impact of inflation
Fiscal measures and positive labor market trends cushion the impact of inflation PMI & main sectoral confidence New fiscal support measures of 2.8% of GDP – backed by a indicators 55 80 fiscal overperformance of 2.0% of GDP in 2021 – are gradually 45 PMI: Values below 50 indicate a New fiscal activa
Slide 9: Financial Results
NATIONAL BANK OF GREECE 2.| Financial Results
Slide 10: Core P&L lines drive 1Q22 COP to €125m up by +32% yoy
Core P&L lines drive 1Q22 COP to €125m up by +32% yoy with PAT (cont. ops.) at €208m P&L Highlights P&L | Group 1Q22 Group PAT (cont. ops.) at €208m, reflects strong core €m 1Q22 1Q21 YoY 4Q21 QoQ operating trends, with COP up by 32% to €125m. Impressive fee NII 288 296 -3% 308 -6% Net Fees & Commis
Slide 11: Sustained NPE reduction drives NPE ratio to 6.5%; best in class capital buffers
Sustained NPE reduction drives NPE1 ratio to 6.5%; best in class capital buffers enhanced Balance sheet Highlights Key P&L Ratios | Group NPE stock¹ at €2.0b or €0.4b net of provisions; NPE ratio¹ at 6.5% 1Q22 4Q21 3Q21 2Q21 1Q21 • NPE reduction continues, with NPE flows remaining negative at NIM (b
Slide 12: FL CET1 up qoq on positive organic capital generation of +c30bps
FL CET1 up qoq on positive organic capital generation of +c30bps 1Q22 FL capital movement1 +c30bps organic capital generation 16.9% pro forma EVO Payments merchant acquiring completion 16.2% CAD FL 15.5% +c0.3% +c0.4% -c0.0% -c0.5% 15.7% pro forma EVO Payments merchant CET1 Ph-in: 16.9% CET1 Ph-in:
Slide 13: 1Q22 Group COP up by +32% yoy to €125m
1Q22 Group COP up by +32% yoy to €125m reflects core income growth, CoR normalization and lower costs Group core operating profit bridge 1Q22 (€ m) Group operating profit decomposition 1Q22 (€ b) COP (€m) 95 125 +32% yoy +32% yoy COP margin (bps) 140 165 +25bps yoy OpEx -1% yoy +21 125 +25% yoy -3%
Slide 14: NII lower by just 3% yoy as Frontier deconsolidation impact is cushioned by PE loan expansion
NII lower by just 3% yoy as Frontier deconsolidation impact is cushioned by PE loan expansion Domestic NII (€ m), Group NIM & CoR (bps) Domestic NII breakdown (€ m) NIM (Group) qoq drop due to NII 280 283 291 292 270 214 216 Frontier 213 206 deconsolidation 182 113 110 96 71 73 CoR (Group) 198 199 L
Slide 15: Disbursements remain strong driving PEs higher by €1.5b yoy
Despite uncertainty, disbursements remain strong driving PEs higher by €1.5b yoy; strong pipeline in 2Q22 Greek loan evolution | performing loans (€ b) Loan disbursements¹ (€ b) 25.6 25.7 25.5 28.9 28.8 Net loans 2.1 €0.8b of disbursements¹ in 2Q22 to mid-May 25.2 25.5 24.2 24.2 +€1.5b 24.0 +6% yoy
Slide 16: PE lending yield normalization bottoms out at over 300bps
PE lending yield normalization bottoms out at over 300bps Greek PE lending yields (bps) Greek forborne & PE yields, NPE NII % Due to Frontier Dom. NPE NII net of 4.6% 4.4% 4.4% 4.4% Total 318 312 308 307 305 Performing cash collected and 3.0% provisions / Dom. NII % (ytd) 769 771 770 771 772 Consume
Slide 17: Disposable income reduction is supported by low cost bearing deposits
Disposable income reduction is supported by the high level of low cost bearing deposits Greek deposit yields (bps) Greek deposit evolution (€ b) 80% 86% Core deposits/total 16 +€4.7b 51.6 51.3 +10.0% yoy 49.6 49.6 46.6 13 7.3 7.1 Time 8.8 8.0 -€2.2b 9.3 -23.5% yoy 10 15.6 15.1 14.2 Sight & 14.5 8 12
Slide 18: 1Q22 Fees grow by an impressive 26% yoy
1Q22 Fees grow by an impressive 26% yoy driven by card and intermediation fees Domestic fees (€ m) Domestic retail fees decomposition (€ m) Fees/Assets 34bps 35bps 40bps YoY YoY 80 +26% +31% 43 70 9 -9% 39 64 5 Deposits 7 +25% 33 3 9 28 +34% 26 Payments 6 11 10 +20% 21 Investment products 8 5 6 +22%
Slide 19: Sustained personnel cost reduction absorbs strategic IT investment impact
Sustained personnel cost reduction absorbs strategic IT investment impact; C:CI at 51.5%, -160bps yoy OpEx by category (€ m) Domestic Branch evolution (#) Group -52 527 branches 1Q22 1Q21 yoy 2yrΔ¹ 461 Personnel 103 107 -3.1% -16% 389 G&As 47 46 +2.4% -0% 366 Depreciation 41 40 +2.2% na 338 337 Tota
Slide 20: NPE reduction continues, despite a lower FNPE base
NPE reduction continues, despite a lower FNPE base, driven by lower formation Domestic NPE stock per category | 1Q22 (€ b) NPE balance change (€ m, Bank) o/w: €0.3b or FNPE & other c30% <30dpd impaired <90dpd Benefitting from 90+dpd 1.2 1.1 the absence of large corporate defaults o/w: €0.3b or 0.5 0
Slide 21: Organic NPE formation in 1Q22 remains negative
Organic NPE formation in 1Q22 remains negative Mortgages (€ m) Consumer (€ m) NPE change1 (€ m) 17 -17 -51 Organic -96 -99 8 2 8 Organic -132 -127 14 -94 -215 -76 -197 -195 -211 -33 -24 -15 -46 Inorganic -154 -15 -321 -77 -1,293 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22 1 Inorganic SBLs (€ m
Slide 22: More than 1/3rd of domestic NPEs of €2.0b comprise likely to cure FNPEs
More than 1/3rd of domestic NPEs of €2.0b comprise of likely to cure FNPEs <30dpd Domestic 90dpd ratios and coverage | 1Q22 Domestic 90dpd – NPE bridge (€ b) | 1Q22 Collateral 80% 4% 85% 66% 64% coverage1 12% 158% 8% 90dpd ratio 158% 2.0 +0.7 +0.05 +0.2 4% 3.7% 3.9% 1.1 1% 90dpd 142.5% 124% 137.1% c
Slide 23: Gradual substitution of S3 for S1/S2 loans will support NII
Gradual substitution of S3 for S1/S2 loans and organic growth of S1 loans will offer increasing support to NII Group gross loan stage evolution (€ b) Group S2 ratio and coverage (%) Group S3 ratio and coverage (%) Stage 3 Δ yoy 4.2 3.8 -2.2 2.2 2.1 o/w: €2.3b FPEs €2.1b SICR Stage 2 €0.3b +30dpd 4.6
Slide 24: Project Frontier II: transaction on track, completion expected in 3Q22
Project Frontier II: transaction on track, completion expected in 3Q22 Timeline & key milestones ✓ Rating process launch ➢ Transaction signing ✓ Sale process launch (1-stage) & closing Apr22 May22 Jun22 Q3 22 ✓ Business Plan ➢ HAPS application ➢ HAPS guarantee comes into force ➢ Migration ➢ Binding
Slide 25: Performance of clients previously under support remains good
Despite uncertainty and inflationary pressures, performance of clients previously under support remains good Support measures Ex-moratoria clients (€ b) Defaulted/ 7% nm 8% 1% nm 4% Re-defaulted as • State subsidy programs (all clients exited YE21): of mid May22 3.0 Original PE perimeter - Gefyra I
Slide 26: Funding cost marginally negative aided by ECB measures and systemic liquidity abundance
Funding cost marginally negative aided by ECB measures and systemic liquidity abundance Eurosystem funding (€ b) NBG Funding Cost (bps) LCR: 255% Repo funding : €0.5b 31 19 12 7 2 1 0 -2 -2 Blended -17 11.6 11.6 10.5 -50 -67 -67 -65 -65 -64 -64 -64 ECB¹ ECB 2.2 2.2 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21
Slide 27: Domestic deposit stock and private cash buffers remain robust in 1Q22
Domestic deposit stock and private cash buffers remain robust in 1Q22 Deposit evolution by geography (€ b) NBG domestic deposit flows (€ b) YoY Group 48.7 51.6 51.6 53.5 53.1 +8.9% 4.7 4.6 3.4 1.5 1.1 0.2 0.5 2.1 2.0 1.8 -15.7% SEE & 2.1 1.9 Other -0.3 51.5 51.3 +10.0% -2.2 49.6 49.6 46.6 -3.6 -€10.
Slide 28: Macro
NATIONAL BANK OF GREECE 3| Macro
Slide 29: Robust economic activity in 1Q22 despite increased inflation and geopolitical uncertainty
Robust economic activity in 1Q22 despite increased inflation and geopolitical uncertainty Business turnover: 30% above its pre-pandemic level and Key indicators point to resilient growth in 1Q22 +38% y-o-y in 1Q22 40 y-o-y 40 35 €bn 35 30 30 30 30 20 20 10 10 25 25 0 0 -10 -10 20 20 -20 -20 15 15 Ma
Slide 30: Inflation at a 27-year high with the crisis in Ukraine amplifying supply-side stress
Inflation at a 27-year high with the crisis in Ukraine amplifying supply-side stress Surging energy prices will keep inflation at high levels Energy markets tend to discount a faster and possibly through 3Q22 costly disengagement from Russia 12 12 240 €/MWh 140 pps $/barrel 10 10 200 120 8 8 100 160
Slide 31: Supportive labor market conditions and fiscal measures cushion pressure on disposable income
Supportive labor market conditions, including a 10% increase in minimum wage, new fiscal measures and strong liquidity buffers help cushion the pressure on disposable income Resilient sentiment in the business sector until April but Labor market adjustment & fiscal support, cushion part of increased
Slide 32: ESG Update
NATIONAL BANK OF GREECE 4| ESG Update
Slide 33: We are pushing forward with our environment and climate strategy
We are pushing forward with our environment and climate strategy Environment strategic themes and recent efforts Examples of impact achieved to-date 1 Lead the market in sustainable energy financing Allocation of Green Bond proceeds 5 hydro ▪ Continued utilization of proceeds from Green Bond issued
Slide 34: Transformation Program Update
5 Transformation Program Update
Slide 35: Our Transformation priorities underpin a new business and operating model
Our Transformation priorities underpin a new business and operating model BEST BANK FOR EFFICIENCY & HEALTHY BALANCE OUR CLIENTS (BBC) AGILITY (ENA) SHEET (HBS) • Dedicated processes for RRF • Implementation of actions to optimise • Completion of Frontier portfolio opportunities; 1st Greek bank to c
Slide 36: Our digital strategy demonstrates impressive results driven by new offerings
Our digital strategy demonstrates impressive results driven by new offerings ENGAGE CROSS-SELL ONBOARD ONBOAR D Digital subscribers (m) Digital active users (m) Digital sales (000s, cumulative) Registered subscribers YoY (%) 3.5 3.5 +11% 3.3 3.2 561 3.1 3.1 3.0 Active 500 2.9 +28% YoY (%) 2.9 users
Slide 37: Appendix
NATIONAL BANK OF GREECE 6| Appendix
Slide 38: Group Balance Sheet & P&L
Group Balance Sheet & P&L Balance Sheet¹ | Group P&L¹ | Group €m 1Q22 4Q21 3Q21 2Q21 1Q21 €m 1Q22 4Q21 3Q21 2Q21 1Q21 Cash & Reserves 14,530 15,827 11,587 11,001 10,587 NII 288 308 308 300 296 Interbank placements 3,715 3,639 3,152 2,906 3,037 Net fees & commissions 85 74 74 70 68 Securities 14,708
Slide 39: Geographical segment P&L: Greece & International
Geographical segment P&L: Greece & International Greece International¹ €m 1Q22 4Q21 3Q21 2Q21 1Q21 €m 1Q22 4Q21 3Q21 2Q21 1Q21 NII 270 292 291 283 280 NII 18 16 18 17 16 Net fees & commissions 80 70 69 66 64 Net fees & commissions 5 4 5 4 4 Core Income 350 362 360 349 343 Core Income 23 20 22 21 21
Slide 40: ESMA Alternative Performance Measures (APMs), definition of financial data and ratios used
ESMA Alternative Performance Measures (APMs), definition of financial data and ratios used The 1Q22 Financial Results Press Release contains financial information and measures as derived from the Group financial statements for the period ended 31 March 2022 and for the year ended 31 December 2021, w
Slide 41: 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 42: 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, excludin
Slide 43: Important Notice – Disclaimer
Important Notice – Disclaimer The information, statements and opinions set out in the 1Q22 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 44: 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 45: 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
National Bank of Greece — Q1 2022 Earnings Presentation on 6ix