9M22: Group PAT (cont. operations) at €652m; COP at €464m
Accelerating core income growth and contained costs and credit risk charges drive up 9M22 COP by 41% yoy
o PEs drive up NII by +5% yoy in 9M22, despite the significant reduction in NPE NII by €78m yoy and the lower TLTRO benefit by €28m yoy in 9M22; 3Q22 NII surged by 11% qoq
o Impressive fee income growth sustained at +22% yoy, driven by cards, payments and trade finance, as well as by a pick-up in fees from investment products
o Operating expenses are contained (+2% yoy) on the back of demand management, process automation and centralization, despite mounting inflation pressures and higher depreciation charges arising from the roll out of the Bank’s ambitious IT investment plan; core income growth pushes C:CI down further to 45.2% in 3Q22
o CoR remains low, at 69bps in 9M22, in line with FY22 guidance
o As a result, 9M22 COP of €464m already nears the levels guided for the FY22 of c€490m
o Including non-core and non-recurring items, attributable net profit reached €680m
Healthy PE expansion of €1.3b ytd is driven by domestic disbursements1 of €4.0b in 9M22 (+45% yoy)
o Domestic PE expansion stood at €1.3b ytd, despite high 3Q22 repayments and adverse seasonality
o With a strong 4Q22 corporate pipeline, YE22 domestic PEs are expected near €27b, up by >€1.5b yoy, in line with our guidance
Domestic NPE stock at €0.3b net of provisions; domestic NPE ratio at 5.9% with coverage reaching 83%
o Sustained negative organic NPE flows drive domestic NPEs further down to €1.8b in 3Q22
o NPE ratio settles below the FY22 target, at 5.9% in Greece (6.1% at the Group level), down by c20bps qoq and c600bps yoy
o Domestic NPE coverage rises, remaining well above sector levels, at 83% in 3Q22 (+c200bps qoq)
o No signs of early delinquencies, despite inflationary headwinds and uncertainty
CET1 FL and total capital ratio FL at 15.2%2 and 16.32 respectively
o CET1 FL and total capital ratio FL edged 20bps higher qoq, at 15.2%2 and 16.3%2 respectively, reflecting strong 3Q22 profitability (+c40bps)
o The closing of the agreement with EVO Payments in 4Q22 will raise CET1 FL and CAD FL ratios to 15.8% and 16.9%, respectively
o Moody's upgraded NBGs’ senior unsecured debt rating to BB-, maintaining a positive outlook, reflecting structural improvements in the Greek economy, as well as the rigorous balance sheet restructuring and sharp improvement in NBG’s core profitability
Key achievements across the Bank underpin the transformation of our business and operating model
o Leveraging our successful Transformation Program, we have enhanced our commercial effectiveness in Corporate, continued to boost our market share in retail disbursements, increased sales in investment products and cards as well as enhanced partnerships Operationally, we apply new technologies and continue to increase centralization for Corporate and Small Business operations. The all-important replacement of our Core Banking System continues on track
o Our digital strategy delivers impressive results, with digital subscribers reaching 3.6m (+9% yoy) and active users reaching 2.7m (+13% yoy) in 3Q22. NBG is widely recognized for its digital offering, ranking among the top 10% 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
o We are pushing forward with our environment and climate strategy and broader ESG agenda, leading the market in sustainable energy financing, monitoring clients carbon footprint, and applying role-model environmentally responsible practices