National Bank Of Greece S.a. · ATHEX:ETE
National Bank Of Greece — Q3 2021 Earnings Presentation
43 slides from National Bank Of Greece's earnings presentation, Nov 26, 2021
Slide 1: 3Q21 Financial Results
3Q21 Financial Results 26 November 2021
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: 1 Key Highlights
NATIONAL BANK OF GREECE 1 | Key Highlights
Slide 4: NBG 9M21 Group financial highlights
NBG 9M21 Group financial highlights 9M21 PAT cont. ops 9M21 COP 9M21 CoR €714m €341m €209m up by +19% yoy up by 49% yoy, reflecting rigorous growth across all core operating lines 104bps (94bps in 3Q21) NPEs €3.8b 3 Personnel Costs 1 CET1 -14.8%yoy 17.8% (FL at 15.4%) Net NPEs at €1.2b NPE ratio 11.
Slide 5: On track to deliver our guidance, with significant outperformance in capital
On track to deliver our guidance, with significant outperformance in capital Core Operating Profitability | €m Asset quality¹ | €b Capital Coverage% 53.2% 62.8% 70.1% >70% 12.8% 14.2% 15.2% CET1 FL % c9% Excluding the RWA relief Room for additional NPE% 32.2% upon Frontier & Ethinki 200bps T2 and AT
Slide 6: Greece's recovery exceeds expectations
Greece’s recovery exceeds expectations Total turnover of enterprises, retail Strong and Greece’s GDP grew by an impressive 16.2% yoy in 2Q21 and reached the 2Q19 level trade volume, goods exports & manufacturing production broad-based 50 y-o-y 50 improvement High-frequency indicators show a continua
Slide 7: Digital banking continues to demonstrate impressive results
Digital banking continues to demonstrate impressive results ONBOARD ENGAGE CROSS-SELL ONBOAR D Digital subscribers (m) Digital active users* (m) Digital sales (000s, cumulative) YoY (%) YoY (%) Registered Active Individuals subscribers users 12M 2.4 +24% 2.3 442 3.3 278 337 391 3.2 +17% 2.2 169 218
Slide 8: 2 Financial Results
NATIONAL BANK OF GREECE 2.| Financial Results
Slide 9: 9M21 COP reaches €341m, up by 49% while 9M21 PAT (cont. ops.) reaches €714m
9M21 COP reaches €341m, up by 49% while 9M21 PAT (cont. ops.) reaches €714m P&L Highlights P&L | Group 9M21 Group PAT (cont. ops.) reaches €714m, up by 19% yoy, €m 9M21 9M20 YoY 3Q21 QoQ NII 897 855 +5% 306 +3% driven by solid core operating trends across the P&L. 9M21 Group Net Fees & Commissions 2
Slide 10: Strong organic NPE reduction; best in class capital levels
Strong organic NPE reduction; best in class capital levels Asset Quality, Liquidity & Capital Highlights Key P&L Ratios | Group 3Q21 domestic NPE stock at €3.7b; coverage at 70% 3Q21 2Q21 1Q21 4Q20 3Q20 • Organic NPE formation at -€215m in 3Q21, leading the qoq NPE NIM (bps) 215 212 212 228 222 bala
Slide 11: CET1 and Total capital at 16.4% and 17.0%; total CAD at c19% including Frontier
CET1 and Total capital at 16.4% and 17.0%; total CAD at c19% including Frontier & Ethniki Insurance completion 9M21 Capital movement +1.7% 17.0% c19% 16.7% -0.3% -0.7% Total capital post Frontier and Ethniki Insurance closing CAD 11.5% CAD FL: 14.8% 16.4% 15.7% CAD FL: 13.8% CET1 FL: 12.8% CET1 FL:
Slide 12: 9M21 group COP reaches €341m, up by +49% yoy driven by all core operating lines
9Μ21 group COP reaches €341m, up by +49% yoy driven by all core operating lines Group core operating profit bridge 9M21 (€ m) Group operating profit decomposition 9M21 (€ b) COP (€m) 228 341 +49% yoy OpEx +49% yoy COP margin (bps) 105 170 +65bps yoy -8% yoy Operating profit(€) 629 754 +20% yoy +52 +
Slide 13: Sustained NII resilience (+5% up yoy), benefits from the expansion of the PE loan book
Sustained NII resilience (+5% up yoy), benefits from the expansion of the PE loan book and lower funding costs Domestic NIM (€ m) & CoR (bps) Domestic NII breakdown (€ m) €811m €853m +5% yoy NIM 232 223 214 220 210 209 213 NII 262 259 290 296 280 283 291 250 244 97 104 118 109 92 CoR Incl. Frontier
Slide 14: Domestic sector-high PE loan additions continue, driven by net loan disbursements of €2.8b
Domestic sector-high PE loan additions continue (+€0.8b yoy), driven by net loan disbursements of €2.8b Greek loan evolution | performing loans (€ b) Net loan disbursements (€ b) 28.0 25.5 25.6 25.7 25.5 Net loans Mortgages Consumer SBL Corporate Total +18% yoy excl Covid-19 programs 24.2 24.2 €2.2b
Slide 15: PE lending yields remain well above the 300bps mark
PE lending yields remain well above the 300bps mark despite dilution from lower yield – lower risk Covid-19 loans Greek PE lending yields (bps) Greek forborne & PE yields, NPE NII % 5.1% 5.0% Dom. NPE NII net of 4.6% 4.4% 4.4% Total 327 324 318 312 308 Performing cash collected and provisions / Dom.
Slide 16: Deposit yields near zero levels driven by abundant system liquidity and negative rates
Deposit yields near zero levels driven by abundant system liquidity and negative rates Greek deposit yields (bps) Greek deposit evolution (€ b) 32 76% 84% Core deposits/total +€5.9b 49.6 49.6 +13.5% yoy 31 47.0 46.6 Time 43.7 8.8 8.0 -€2.4b 23 9.6 9.3 -23.3% yoy 10.5 18 21 14.2 14.5 Sight & New othe
Slide 17: 9M21 Fees grow by 11% yoy as retail, corporate and non core banking fees maintain a recovery trend
9Μ21 Fees grow by 11% yoy as retail, corporate and non core banking fees maintain a recovery trend Domestic fees (€ m) Domestic retail fees decomposition (€ m) Fees/Assets 34bps 35bps 35bps 34bps YoY YoY 199 +11% 111 +8% 179 103 26 +35% 19 Intermediation & other 36 +12% 33 62 +9% Bancassurance 57 10
Slide 18: Domestic C:CI drops to 50% in 9M21, nearly 8 ppts lower yoy
Domestic C:CI drops drops to 50% in 9M21, nearly 8 ppts lower yoy OpEx by category (€ m) Domestic Branch evolution (#) Domestic Group 527 -48 510 9M21 9M20 Yoy 2y± 9M21 9M20 Yoy 2y± branches 486 Personnel 289 339 -14.8% -22% 306 358 -14.5% -21% 461 G&As 123 123 +0.0% -10% 133 133 +0.1% -10% 389 Depr
Slide 19: Formation remains negative, supporting our 2021-22 guidance for organic NPE reduction of €0.8b
Formation remains negative, supporting our 2021-22 guidance for cumulative organic NPE reduction of €0.8b Domestic NPE stock per category – 3Q21 (€ b) NPE balance change (€ m, Bank) FNPE & other o/w: €0.6b or 82% impaired <90dpd <30dpd o/w: €0.5b or 91% 90+dpd <30dpd 2.0 1.9 1.2 NPE inflows (+) 264
Slide 20: Net formation across lines of business remains consistently negative
Net formation across lines of business – mostly via organic means - remains consistently negative Mortgages (€ m) Consumer (€ m) NPE change1 (€ m) 16 8 2 8 -52 -99 -3 -7 -24 -70 -127 -96 Organic -173 -184 -197 -26 -132 -205 -161 -158 -316 -215 Organic -242 -33 -4,326 Inorganic -2 -15 -46 1Q20 2Q20 3
Slide 21: Domestic NPEs drop further to €3.7b in 3Q21; coverage exceeds 70%
Domestic NPEs drop further to €3.7b in 3Q21, with nearly 1/3 being FNPEs <30dpd; coverage exceeds 70% Domestic 90dpd ratios and coverage | 3Q21 Domestic 90dpd – NPE bridge (€ b) | 3Q21 Collateral 79% 14% 73% 58% 60% coverage1 23% 15% 104% 90dpd ratio 3 3 112% 6% 7.2% 7.2% +1.2 3.7 6% 2.2 +0.1 +0.2 9
Slide 22: S3 loans continue on a declining trend with their coverage increasing to 59%
S3 loans continue on a declining trend with their coverage increasing to 59% Group gross loan stage evolution (€ b) Group S2 ratio and coverage (%) Group S3 ratio and coverage (%) Δ yoy 10.2 Stage 3 4.4 4.1 3.8 -6.4 o/w: €2.6b FPEs €1.8b SICR €0.2b +30dpd 29.2% Stage 2 4.9 4.5 4.4 4.6 -0.3 ¹ Ratio 1
Slide 23: Ex moratoria client performance remains far better than expected and provided for
Ex moratoria client performance remains far better than expected and provided for Support measures Ex-moratoria client breakdown (€ b) Defaulted/ 5% nm 6% 1% nm <4% • State subsidy program take up: Redefaulted 3.0 as of Nov.21 - Gefyra I to primary residence mortgages at c€1.4b; nearly 40% previousl
Slide 24: Funding cost at zero levels reflects all time low deposit rates and ECB's TLTRO facility
Funding cost at zero levels reflects all time low deposit rates and ECB’s TLTRO facility Eurosystem funding (€ b) NBG Funding Cost (bps) 41 31 19 12 LCR: 266% 7 0 2 1 0 Repo position : -€2.5b Blended -17 -50 -67 -67 -65 -65 -64 ECB¹ 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 Funding structure (%) 11.6
Slide 25: Domestic deposits are up by 13% yoy with rates converging to near zero levels
Domestic deposits are up by 13% yoy with rates converging to near zero levels Deposit evolution by geography (€ b) NBG domestic deposit flows (€ b) YoY Group 45.2 48.5 48.2 51.1 51.1 +13.0% 4.7 3.4 2.6 1.5 1.1 0.2 0.5 SEE & 1.5 1.5 1.5 1.5 1.5 -1.0% Other 49.6 49.6 +13.5% -2.2 47.0 46.6 -3.6 -€10.6b
Slide 26: 3 Macro
NATIONAL BANK OF GREECE 3| Macro
Slide 27: The turnaround in economic activity is so strong that it surpasses the 2019 activity in some metrics
The turnaround in economic activity is so strong that it surpasses the 2019 activity in some metrics Real GDP: Heading to a V-shaped recovery Several activity metrics exceeded their 2Q19 level in 2Q21 48000 € mn y-o-y, % 20 15 Investments 17.0 46000 10 44000 5 Goods exports 13.3 42000 0 -5 40000 Gro
Slide 28: Continued 3Q21 rebound, with strong domestic demand, reviving tourism and robust goods exports
Continued 3Q21 rebound, with strong domestic demand compounded by reviving tourism and robust goods exports Real GDP: NBG monthly indicator & actual data Concerted improvement in July-October 2021 25 y-o-y, constant prices €bn 48 Economic Indicators 10yr avg 2019 2020 2021 Most recent 20 46 Economic
Slide 29: Strong 9M21 growth momentum and liquidity help the economy cope with Covid-19 pressures
Strong 9M21 growth momentum and liquidity help the economy cope with Covid-19 pressures and the temporary surge in inflation | Tax revenue rebound in tandem with economic activity pick-up Covid-19 pressure builds up again A sharp but temporary surge in inflation 100 number of number of 1,000 4 pps y
Slide 30: 4 ESG Framework
NATIONAL BANK OF GREECE 4| ESG Framework
Slide 31: NBG continues to strengthen its practices across all ESG pillars
NBG continues to strengthen its practices across all ESG pillars ESG ratings ESG recent actions and achievements Latest • NBG’s Climate & Environmental Risk Action Plans ranked among ESG index best in Europe in terms of adequacy by the ECB; implementation rating of action plans is on track ESG ratin
Slide 32: 5 Transformation Program Update
5 Transformation Program Update
Slide 33: Our Transformation Program underpins a new business and operating model
Our Transformation Program underpins a new business and operating model HEALTHY BALANCE EFFICIENCY & BEST BANK FOR SHEET (HBS) AGILITY (ENA) OUR CLIENTS (BBC) • Migration of Frontier portfolio and • Further reduction of staff costs through • Operational setup to support Corporate definition of post-
Slide 34: Pipeline of new digital functionalities creating a new competitive advantage
Pipeline of new digital functionalities creating a new competitive advantage ONBOARD ENGAGE CROSS-SELL ONBOAR D • Existing customers digital • Account aggregation • Cards (debit/ virtual prepaid/ credit) onboarding • Personal Financial Management (PFM) • Accounts & time deposits • New customers’ dig
Slide 35: 6 Appendix
NATIONAL BANK OF GREECE 6| Appendix
Slide 36: Group Balance Sheet & P&L
Group Balance Sheet & P&L Balance Sheet | Group P&L | Group €m 3Q21 2Q21 1Q21 4Q20 3Q20 €m 3Q21 2Q21 1Q21 4Q20 3Q20 Cash & Reserves 11,464 10,802 10,461 9,175 6,750 NII 306 297 294 314 304 Interbank placements 3,114 2,875 2,990 3,440 3,899 Net fees & commissions 73 69 67 68 65 Securities 15,976 16,0
Slide 37: Geographical segment P&L: Greece & International
Geographical segment P&L: Greece & International Greece International €m 3Q21 2Q21 1Q21 4Q20 3Q20 €m 3Q21 2Q21 1Q21 4Q20 3Q20 NII 291 283 280 296 290 NII 15 15 14 18 15 Net fees & commissions 69 66 64 65 61 Net fees & commissions 4 3 3 3 3 Core Income 360 349 343 360 351 Core Income 19 18 17 21 18 T
Slide 38: 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 3Q21 Financial Results Press Release contains financial information and measures as derived from the Group and the Bank financial statements for the period ended 30 September 2021 and for the year ended 31
Slide 39: 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 40: Definition of financial data, ratios used and alternative performance measures
Definition of financial data, ratios used and alternative performance measures Net interest income over average interest earning assets. Net Interest Margin equals net interest income divided by the average of interest earning assets (the average of interest Net Interest Margin NIM earning assets at
Slide 41: Important Notice – Disclaimer
Important Notice – Disclaimer The information, statements and opinions set out in the 3Q21 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 42: 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 43: 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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