NBG Group FY22 Financial Results

FY22: Attributable PAT at €1.1b, up by 29% yoy

  Accelerating core profitability of €0.7b far exceeds FY22 COP guidance of c€0.5b

o FY22 NII picks up sharply by +13% yoy, despite a significant reduction of NPE NII from our NPE clean up as well as lower TLTRO NII, reflecting positive loan volume effects complemented by base rate repricing in 2H22

o Solid fee income growth sustained at +21% yoy, reflecting robust growth from all business areas, driven by higher transaction demand

o Operating expenses remained contained (+3% yoy) despite high inflation in 2022 and increased depreciation charges reflecting our ongoing strategic IT investment plan; strong and sustainable core income recovery pushes C:CI down to 46.9% in FY22 from 52.3% in FY21, with the 4Q22 level down to a record low of 43.5%

o CoR conservatively remained in the 70bps area throughout 2022 and in line with FY22 guidance, despite consistently negative organic formation, leading to increased coverage levels

o Marked core income expansion (+15% yoy) coupled with contained costs and credit risk charges drove COP 57% higher yoy to €695m

o Attributable PAT reached €1,120m, up by 29% yoy, including trading gains and the gain from the EVO JV

  Strong performing loan expansion of +€2.5b yoy, driven by healthy corporate disbursements 

o Factoring in very strong 4Q22 disbursements amounting to €2.7b, domestic performing loans reached €27.7b, up by a solid €1.2b qoq and €2.5b yoy 

o FY22 loan disbursements reached €6.7b, up by nearly 40% yoy, driven by corporates (c83% of total), while retail new production also picked up sharply to €1.2b, up by almost 30% yoy

o NBG has c€0.3b in RRF loans contracted (29% market share), of which c1/3rd under the Green Pillar

  Domestic NPE stock at €1.6b or just €0.2b net of provisions  

o Consistently negative organic NPE flows of -€0.3b were aided by low rates of defaults and redefaults; including inorganic actions and write offs, NPE reduction reached -€0.5b yoy 

o The NPE ratio dropped by c80bps qoq and c180bps yoy to 5.1% in Greece (5.2% at the Group level) 

o Domestic NPE coverage kept rising on a FY22 CoR of 70bps to a high of c88% (Group Stage 3 coverage at 58%) 

  CET1 FL at 15.7%, up by >80bps yoy, with total capital ratio FL at 16.8%

o CET1 FL settled >80bps higher yoy (+c50bps qoq) at 15.7% in FY22, with total capital ratio FL reaching 16.8% (+120bps yoy)

o Strong FY22 profitability (+190bps) comfortably covers the sharp RWA expansion (-100bps) 

  Our Transformation Program is a competitive advantage, supporting rapid change and target achievement, most notably:

 o Visible enhancement of our commercial effectiveness, increased migration to digital channels and continuing efforts on operational efficiency through streamlining and automation of processes and upgrading technology, including the ongoing replacement of our Core Banking System

o Widely recognized for our digital offering, ranking among the top 10% of digital champions in Deloitte’s Global Digital Banking Maturity Survey for 2022, out of a global sample of more than 300 incumbent and challenger banks; our rich offering continues to deliver impressive results, with digital subscribers and active users reaching 3.7m (+7% yoy) and 2.7m (+10% yoy) in 4Q22, while digital sales surged by 34% yoy to almost 1m units 

o Environment and climate strategy within our broader ESG agenda leads the market in sustainable energy financing and aims to apply best practices in supporting our clients’ shift to environmentally responsible practices

o Upgrade of NBG’s credit ratings since YE21 by all rating agencies, reflecting the structural improvements in our asset quality, capital adequacy and core profitability; NBG maintains the highest credit rating in Greece, at ‘BB-’ 


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