Key financial highlights
• 1Q25 Group PAT1 at €381m reflects top line resilience and sustained CoR normalization
o 1Q25 NII -9% lower yoy, in line with our FY25 guidance, reflecting sharply lower interest rates (-c100bps cumulatively in 4Q24 and 1Q25), partially offset by healthy credit extension, deposit hedges and further optimization in our deposit mix
o Fees up +13% yoy on a l-f-l2 basis in 1Q25, underpinned by strong performance in both retail (+15%2 yoy) and corporate businesses (+35% yoy). The cross sell of investment products continues to be strong (investment fees +60% yoy), with the impressive FY24 mutual fund market share gains sustained in 1Q25
o Recurring OpEx up +5%3 yoy in 1Q25 on the back of higher personnel expenses due to increased wages and variable remuneration, as well as investment in human capital including onboarding new talent and skills through hires. The benefit of the 4Q24 VES will fully materialize in 2H25 onwards, due to delayed exits
o CoR at 46bps in 1Q25 (49bps in 4Q24) reflecting favorable asset quality trends
o RoTE1 at 19.1% or 16.5% normalizing for strong 1Q25 trading gains (before adjusting for excess capital), well above our FY25 guidance of >13%
• Our well-capitalized and highly-liquid balance sheet continues to stand out
o Performing loan growth of +12%4 yoy in 1Q25 compares favorably with our 3yr CAGR guidance of c8%, driven by net credit expansion of +€0.3b4
o Loan disbursements at €1.6b in 1Q25, up +41% yoy, driven by corporates
o The corporate clients balance sheet optimization experienced in 1Q25 reverses in Apr25, as corporate deposits were up by +€0.4b
o Fixed income securities exposure of €20.4b in 1Q25 (+€2.9b yoy) provides a natural hedge to our NII against normalizing interest rates
o Our strong net cash position constitutes a key comparative advantage, funding loan expansion and a high-margin fixed-income securities book
o NPE ratio at 2.6%, with the absence of NPE flows allowing CoR normalization below 50bps in 2025 as guided
o NPE and S3 coverages of 97% and 54%, at the high end of the European spectrum, provide resilience in times of uncertainty, highlighting NBG’s balance sheet strength
• CET1 at 18.7%, total capital ratio at 21.5%
o CET1 at 18.7%, c40bps higher ytd, comfortably absorbs increased payout accruals to 60%5 from 50% in FY24; total capital ratio at 21.5%
o MREL ratio at 28.4% fulfils the final MREL target of 26.8%
• Our Transformation Program supports the delivery of sustainable results
o In Corporate, we further strengthened our coverage and service model, introducing innovative fee-generating offerings, including in cash management and digital solutions, enhancing our operational set up to accelerate growth of international syndicated loans and project finance
o In Retail, we further elevated our service and operating model for individuals, including with regards to relationship managers for high-potential customers and the launch of a new remote channel, whilst strengthening our offering for Wealth customers through the launch of new products and the gradual migration to a modern wealth platform
o We are fortifying our leading position in digital banking, with digital active users exceeding the 3.1m mark as of 1Q25 (market shares6 mobile: 31%, internet: 25%) and cumulative digital sales reaching 1.8m units
o Our strategy on new partnerships provides a strong foundation for growth in niche markets, most recently with the commercial launch of Uniko, a joint venture company with Qualco for a digital platform in the real estate ecosystem
o We are entering the final year of migration to our new Core Banking System, upgrading our workflow systems and introducing GenAI use cases
o In ESG, we focus on the roll-out of the new Sustainable Finance Framework (SFF) in line with the EU Taxonomy, as well as the scale-up of NBG’s social strategy efforts, including a financial education platform
“The global economy is navigating a period of heightened uncertainty, underpinned by escalating trade tensions, stubborn inflation, and slower growth, with growth forecasts for major economies moderating. Amid this uncertain global backdrop, the Greek economy continues to demonstrate remarkable resilience, expected to grow by c2.5% this year, led by rising employment, real wage increases, and solid tourism activity, and with lower direct exposure to global supply chains and to anticipated US tariffs on EU products (exports to US represent <5% of Greece’s total exports). Moreover, the economy will be supported by significantly looser monetary and fiscal policy as well as lower oil prices -- the main risk to the outlook is the degree of slowdown in the euro area, its main trading partner.Building on a strong foundation from 2024, and leveraging Greece’s growth dynamics and the concomitant expansion in credit and activities more generally, we maintained our strong profitability and a solid capital base in the first quarter of 2025 on the back of income resilience. PAT amounted to €0.4b1, translating into €1.442 per share, with RoTE standing at 16.5%2, well above our full year guidance of >13%. Our solid performance reflects the disciplined execution of our strategic priorities though our transformation and growth programme.
Our capital position was further strengthened, maintaining our strategic optionality. CET1 and total capital ratios increased by c40bps ytd to 18.7% and 21.5%, respectively, far above internal targets, accelerating accruals to a 60%, pace, as well as the corresponding pace of DTC amortization.
Against an uncertain global environment, NBG demonstrates the strength, resilience, and adaptability of its business model. Our continuous investments in technology, especially digital banking, and the experience and engagement of our people have been instrumental in driving sustainable growth, superior customer experience, and building a resilient and future-ready organization. As we move forward, we remain fully committed to supporting Greece’s growth trajectory -- which is based on strong fundamentals -- delivering sustainable value for our shareholders, and building an even stronger and more dynamic Bank for the future".
Pavlos Mylonas
Chief Executive Officer, NBG