The following is a summary of the National Bank of Greece S.A. (NBGIF) Q4 2023 Earnings Call Transcript:
Financial Performance:
National Bank of Greece reported a full-year 2023 core profit after tax (PAT) of €1.2 billion, delivering a core return on tangible equity of over 18%.
The bank produced an earnings per share of over €1.2 for the full year, higher than the guidance.
Net credit growth was €1.3 billion for the year.
The bank showed strong fee income growth, increasing by 17% year-on-year due to increased customer activity and cross-sales.
The cost of risk was within the 80 basis points guidance.
The capital buffer increased by 220 basis points to 17.8% following a provision for a dividend payout.
Q4 2023 saw a core profit after tax of €345 million.
Net Interest Income increased by 65% YoY due to higher base rates and healthy loan expansion, and the net interest margin increased to 303 basis points for the full year.
CET1 ratio increased by an intense 220 basis points YoY to 17.8% in 2023, with a total capital ratio settling at 20.2%.
Business Progress:
The bank is benefiting from Greece's robust economic growth, driving corporate lending and residential real estate demand.
The bank's IT and digital transformation has improved efficiency and customer service.
NBG is focusing on maintaining high profitability levels and targets a core return on tangible equity of over 18% for 2026.
Its growth strategy includes doubling assets under management and maintaining strong cost containment and fee growth.
The bank expects its cost of risk to normalize to below 50 basis points by 2026 and foresees the NPE ratio to be less than 3% in 2026.
There's been an improvement in asset quality with NPE stock declining to €1.3 billion.
The bank's liquidity profile is strong, with a loan-to-deposit ratio of 58% and a liquidity coverage ratio of 262%.
The MREL ratio is already ahead of the January 2025 requirement, standing at 25.4%.
Continuing their ESG governance, the bank has committed to ambitious climate emissions targets for 2030.
More details: NATIONAL BANK OF GREECE IR
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