1Q24 Financial Results

Key financial highlights

Core PAT +45% yoy drives 1Q24 attributable PAT to €358m, up by +38% yoy and +14% qoq

o NII above €600m off the 4Q23 peak, (-2.8% qoq), reflecting the impact from the hedging cost of carry and higher funding costs, partially absorbed by positive loan volume effects driving our PE loan NII higher qoq; NIM at 326bps, well above our FY24 guidance of <290bps 

o Sustained fee income momentum (+15% yoy) following a seasonally strong 4Q23, driven by double-digit growth across retail products, especially in investment products and origination fees (>30% higher yoy); the number of customer transactions grew +13% yoy, on the back of e-banking channels up +26% yoy

o Continued cost discipline, with 1Q24 recurring operating expenses up by 3% yoy (like-for-like), reflecting the collectively agreed wage rises in December and normalized1 variable pay accruals, as well as abating inflationary pressures; 1Q24 C:CI below 30% against an FY24 target of <35%

o CoR at 55bps, well inside our <65bps guidance for FY24, with class leading coverage levels across Stages

o Core RoTE at 17.6% in 1Q24 and 19.7% on attributable PAT, before adjusting for excess capital 

NBG is the first Greek Bank to regain IG status since the Greek crisis outbreak of 2010

o MDBRS assigned an IG rating on NBG highlighting our strengthened balance sheet, core earnings power, sustained organic capital buildup, as well as strong funding and liquidity position

o PE loan expansion of +€1.1b yoy to €30.2b at the Group level; retail disbursements have gathered pace in 1Q24 reaching €0.4b, driven by SBs and consumer loans, offsetting repayments across the retail book (flat PEs qoq for the first time in many years)

o The approved not yet disbursed corporate pipeline post April currently stands at €2.9b, while April disbursements of €0.85b are already bouncing back from a seasonally weak 1Q24, boding well for our FY24 credit expansion target 

o Exposure on fixed rate assets provides a natural hedge against the imminent ECB rate normalization 

o Domestic deposits display seasonality as well as cash management optimization by corporates and the turn to asset management products; on a yoy basis, domestic deposits are up +€0.6b reflecting inflows from retail customers 

o NBG is the first Bank to have repaid TLTRO exposure in 1Q24; net cash increased further to over €9b in 1Q24, mainly due to MREL issuances 

Group NPE ratio at 3.7%, net NPEs at €0.2b 

o Group NPE stock at €1.3b; NPE coverage at 86%, with Stage 2 coverage at 8% and Stage 3 coverage at 52%

o Non-significant NPE flows in 1Q24 are well inside our FY24 guidance

CET12 at 18.6%, total capital ratio2 at 21.3%

o Strong profitability pushed CET1 ratio2 +c80bps higher qoq to 18.6%; total capital ratio2 at 21.3%, up by +c110bps qoq 

o MREL ratio2 at 26.5%, 120bps above the Jan25 requirement of 25.3% 

Our Transformation Program provides us with a competitive edge, supporting the rapid achievement of change 

o We continue to enhance our revenue generation capacity through service model improvements, cross-selling, strategic partnerships, new business offerings, as well as significant changes to our technology infrastructure and our operating model, including the replacement of our Core Banking System

o Our continued efforts on digital upgrades keep delivering impressive results, with leading market shares in monthly active users (mobile: 32%, internet: 25%) and digital sales (cards: 41%, consumer: 32%, insurance: 55%), while digital sales surged to 1.3m units in 1Q24 from 0.9m units in 1Q23

o We further embed Climate & Environment considerations into targets, business strategy and risk management processes, further automating internal and external ESG reporting and launching flagship social initiatives, including on financial literacy and inclusion


“Economic activity in Greece is gathering pace in the first months of 2024, displaying dynamism and resilience to geopolitical risks, with most key leading indicators on the rise; notably, labor market conditions are improving further, fixed capital investments show signs of strengthening, and credit demand is increasing. 

Capitalizing on Greece’s growth dynamics, NBG had a strong start to the year, demonstrating solid financial results across all key performance indicators, leveraging our strong balance sheet and decisive transformation. With a noteworthy resilience of core income, we generated an attributable PAT of c€360m in 1Q24, +38% higher yoy and +14% qoq, with the return on tangible equity reaching nearly 20% for the quarter (c18% on core PAT). 

Our capital buffers were further enhanced, with CET1 and Total Capital ratios reaching 18.6% and 21.3%, up + 80bps qoq and +110bps qoq respectively -- after accumulating for dividend distribution-- demonstrating our continued strong organic capital generation. Our liquidity profile, deriving from the Bank’s strong and stable core deposit base, remains robust, with 1Q24 excess cash increasing further to €9.1b, after fully repaying our TLTRO. Our asset quality remains solid, with non-significant NPE flows in 1Q24. 

Our compelling financial performance, underpinned by sustained core profitability, coupled with our solid capital and liquidity profile, have allowed us to become the first Greek Bank to regain investment grade status. 

Looking ahead, we remain steadfast in our commitment to foster the economy’s expansion, supporting the growth initiatives of our customers, whilst delivering value to our shareholders. With a strategic focus on our technological transformation and with the loyal support of our people, we are continuing to work towards enhancing our customers’ experience and future, as the Bank of First Choice.” 

Pavlos Mylonas
Chief Executive Officer, NBG