FY23 Financial Results

Key financial highlights 

FY23 Group core PAT at €1.2b, up by 2.5x yoy; core RoTE at 18.3%, before adjusting for excess capital

o Sustained NII momentum, up by +6% qoq, reflecting continuing loan repricing following ECB’s base rate hikes, offsetting slightly higher funding costs; As a result, NIM continued to rise, up by +15bps qoq to 337bps in 4Q23

o Fee income picked up sharply, at +15% qoq and +10% yoy for FY23, on the back of solid growth across segments, led by business lending, trade finance and increased cross selling of investment and insurance products; excluding the merchant acquiring deconsolidation, FY23 fees were up by +17% yoy

o Discipline on operating expenses continued, with FY23 personnel and G&A expense growth well below inflation (+c2% yoy), despite collectively agreed wage increases and variable pay; higher depreciation charges reflect the roll out of our strategic IT CapEx plan, spearheaded by the replacement of our Core Banking System (CBS); FY23 C:CI at 31.6% 

o FY23 CoR at 64bps1, well inside our c80bps guidance, reflecting low NPE formation 

Disbursements2 accelerate to €2.6b in 4Q23, driving Group PEs +€1.3b higher yoy, in line with guidance

o Strong disbursements2 in 4Q23 leading FY23 to €7.0b compared to €6.7b in FY22

o PE loan expansion of +€1.3b yoy to €30.5b at the Group level, driven by SMEs, Project Finance and Shipping; FY23 retail disbursements2 accelerate to €1.2b  

o Fixed-rate securities expansion provides protection against future ECB rate normalization 

o Domestic deposit growth continued strong, up +€1.7b yoy, driven by retail customer dynamics, as corporate deposit drawdowns affected both liquidity and net PE expansion during FY23

o Netting off residual TLTRO exposure (€1.85b) and factoring in our net lender interbank position, net cash increased further to €8.0b in 4Q23, steadily at the high-end of the sector

Group NPE ratio at 3.7%, coverage at sector high levels of 87.5% 

o Group NPE stock at €1.3b in 4Q23, or €0.2b net of provisions

o 4Q23 NPE flows of just +c€50m, with FY23 NPE reduction at -€0.5b

CET1 at 17.8%, total capital ratio at 20.2%

o CET1 ratio increased by an impressive +c220bps yoy to 17.8%, including a provision of 90bps for a 30% dividend payout, reflecting the strong profitability; total capital ratio at 20.2%, up by +c350bps yoy 

o Pro-forma for our Jan24 €600m senior preferred issuance, MREL ratio at 25.4%, already ahead of the Jan25 requirement of 25.3%

Our successful Transformation Program continues to provide NBG with a competitive edge, as a powerful delivery engine for rapid and sustainable change 

o Moving decisively towards a more agile business model, enhancing our commercial effectiveness and operational efficiency through centralization and automation of processes, while upgrading technology, including the all-important replacement of our CBS, the roll-out of which will be completed by YE25

o Wide recognition for our digital offering, with leading market shares in monthly active users (mobile: 32%, internet: 25%) and digital sales (cards: 41%, consumer: 32%, insurance: 55%); our digital sales increased to 1.2m units in FY23 from 0.8m in FY22

o Ambitious Net-Zero targets for financed emissions are underpinned by our business strategy for Climate & Environment. Effective oversight and steering through strengthened ESG governance across hierarchy levels and lines of defense. Notable improvements in our ESG ratings


“Economic activity in Greece remained on a healthy upward trend in 2023, despite the unfavorable external economic environment and tight monetary conditions. Strong policy credibility, a competitive economy - -attracting sizeable domestic and foreign investments- - and α business cycle still in its maturing phase, support Greece’s superior growth path. Moreover, the return to investment grade has led to improving financial conditions and higher asset valuations.

The recent positive developments that have taken place in the country foreshadowed the success of the placement of 22% of our share capital by the HFSF in November, but also is an acknowledgement by our shareholders of our credibility, attained through consistent and precise execution, through our Transformation Program, of a series of ambitious business plans over the past five years.

Indeed, we delivered an impressive performance for 2023, leveraging Greece’s growth momentum, the distinct strengths of our balance sheet and our successful digital and operational transformation. Specifically, our FY23 core PAT reached €1.2b, yielding a core RoTE of >18%, outperforming comfortably our FY23 guidance. The overperformance was evident in all lines of the P/L. Regarding loan growth, loan disbursements exceeded €7.5b at the Group level, resulting in a healthy performing loan expansion of €1.3b, despite significant repayments in 2023.

Our strong profitability further enhanced our capital buffers, providing us with significant strategic flexibility going forward. Our CET1 ratio increased by a notable +c220bps yoy (post dividend provision), to a sector leading 17.8%, with the total capital ratio reaching 20.2%, up by +c350bps yoy. 

Growth catalysts and reforms bolster growth prospects for 2024 and beyond, and the Bank remains focused on supporting the economy’s continued strong growth. Our strategy leverages (i) our investment in technology - -so as to rapidly distinguish ourselves for our agile and expeditious operations and superior customer experience- - and (ii) our people, who continue to earn the trust of our clients by providing service excellence, thus, being acknowledged as the Bank of First Choice.”

Pavlos Mylonas
Chief Executive Officer, NBG