Key financial highlights
• FY24 Group Core PAT1 at c€1.3b (+10% yoy), with better-than-expected top line resilience
o FY24 NII up by +4% yoy, reflects part of the impressive credit extension of 2024 (PEs >€3b yoy) and resilience to lower Euribor rates (-c100bps YE24 vs YE23). 4Q24 NII came -2% lower qoq, as rates impact precedes that of the pick-up in loan volumes towards the end of 4Q24
o Sustained fee income momentum (+12% yoy), spearheaded by the cross sell of investment products (+47% yoy), following notable mutual fund market share gains (bond MFs: +6ppts, total: +4ppts) and strong lending fee growth especially in corporates (+14% yoy)
o Recurring OpEx up +5%2 yoy in FY24 reflecting class leading investments in IT and increasing wages. C:CI ratio at 32%, well inside our FY24 target of <33%
o FY24 CoR declined steadily to 53bps (49bps in 4Q24) reflecting favorable asset quality trends
o Core RoTE1 at 17.5% in FY24 before adjusting for excess capital
• Strong and highly liquid Balance Sheet, with large share of core deposits funding
o FY24 performing loans up by a record-breaking €3.1b yoy, outperform by far our upgraded guidance
o Loan disbursements exceeded €9b in FY24, up +31% yoy, driven by strong growth across SMEs, project finance, large corporates, and shipping. Retail disbursements increased by +30% yoy to €1.5b in FY24, with leading market share in new production (mortgages: c32%, consumer: c25%, SBLs: c26% in FY24)
o Despite lower average rates in 4Q24 (-57bps in avg 3M Euribor), loan-deposit impact on NII was fully offset by hedges and a better deposit mix
o Use strong net cash position to increase exposure in fixed-income securities (+c€3.2b in 2024) as ECB rates decline
• Group NPE ratio at 2.6%, -1.2ppts lower yoy; NPE coverage at nearly 100%
o Lack of net new NPE flows allowed further CoR normalization at just over 50bps
o NPE stock drops below the €1b mark; NPE and S3 coverage at 98% and 56%
• CET1 at 18.3%, total capital ratio at 21.1%
o CET1 at 18.3%, up by +0.5ppt yoy, despite absorbing payout accruals raised to 50%3 from 40% in 9M24 and the sharp increase of credit RWAs, most of which in 4Q24; total capital ratio at 21.1%, up by +1ppt yoy
o MREL ratio at 28.0% fulfils the final MREL target of 26.8% ahead of schedule
• Our Transformation Program supports the delivery of sustainable results
o In Corporate, we have rebuilt our service model with expert front-line teams, a centralized middle-office Corporate Service Unit, and streamlined back-office operations. We continue expanding our offering with innovative products and services, such as Energy Baseload Swaps and digital solutions
o In Retail, we have resegmented our service model, with dedicated Relationship Managers for Business Banking, Premium, and high-potential Mass customers. Combined with a competitive product offering, these enhancements underpin market share gains in all retail lending categories, credit cards, and investment products
o We solidified our leading position in digital banking, with dedicated apps for Business and Corporate clients, as well as for the youth segment (Next). Digital active users exceeded the 3m mark as of 4Q24 (market shares mobile: 31%, internet: 26%) and cumulative digital sales reached 1.7m units for the year
o We continued the successful roll-out of our new Core Banking System, with the majority of our lending portfolio (incl. Corporate, Small Business and Consumer credit) already migrated. Additional technological investments (incl. workflow systems, paperless, and GenAI use cases) further boost the efficiency of our operating model
o In ESG, we issued our second green senior preferred bond (€650m), and further strengthened our renewable energy and transition finance portfolio, in line with our Sustainable Financing Framework and sector-specific transition plans to meet our net-zero financed emissions targets for 2030
1 Excluding trading, other income and one-off items | 2 Adjusting for one-off tax & duty benefit in 2023 G&As | 3 Subject to AGM and regulatory approvals
“Greece’s economy continued to show resilience in the face of a stagnant Europe, growing by a robust c2.5%, led by fixed investments and tourism and despite a strong fiscal performance. Importantly, consensus projections indicate a continued strong performance going forward.
Our FY24 financial results exhibit sustained strength across business lines, leveraging Greece’s growth dynamics, our strong balance sheet, and our successful digital and operational transformation. Indeed, we exceeded our guidance for FY24 – which was revised up in August – on all metrics. Notably, our FY24 core PAT amounted to €1.3b, with core RoTE standing at 17.5%, well above our full year guidance of >16%.
Key contributor to these solid results was the resilience of our NII to lower market rates, benefitting from the strong expansion of our PE loan book, up by +€3.1b yoy and an impressive +€2.2b in 4Q24. Furthermore, fee income increased in the double digits, led by accelerating activity and the cross sell of investment products. OpEx growth was contained despite higher wages and significant IT investments, while CoR normalized to levels close to 50bps compared with our FY24 guidance of <60bps, reflecting strong asset quality.
Our capital ratios remain far above target, with CET1 and total capital ratios reaching 18.3% and 21.1%, respectively, including a payout accrual of 50% out of 2024 earnings, compared with 30% paid out last year. Our intention is that remuneration to shareholders in 2025 comprises an increased dividend (35%), with the remaining 15% comprising share buybacks.
Our revised guidance, based on our new business plan for 2025-2027, targets resilience in NII despite the sharp drop in central bank rates, with loan growth at c8% per year, on average, for the period, resulting in strong and sustainable profitability (RoTE >18% in 2027, based on internal CET1 targets) and continued organic capital generation, even after further increases in our payout ratios from the 2025 level.
Our operating model will continue to leverage on our first mover advantage in making significant investments in technology – projects which are now near fruition – and which will deliver secure end efficient banking solutions. Combined with the investment in our people, our aim is to offer superior customer experience through personalized services that cater to the evolving needs of our clients, thus shaping the future of banking in Greece".
Pavlos Mylonas
Chief Executive Officer, NBG
