NBG Group 1Q23 Financial Results
Increasing core income and contained operating costs push core RoTE to c15% vs a FY23 target of c11%
- Sustained NII recovery, at +18% qoq in 1Q23, is driven by PE loan growth (+€2.1bn or 8% yoy) and ECB base rate repricing offsetting higher deposit and MREL-related costs; NIM up by nearly 50bps qoq
- Fee income growth at +11%yoy (adjusted for the deconsolidation of the merchant acquiring business), reflects double-digit growth in retail and corporate businesses, with growth spearheaded by cards, deposit product bundles, and trade finance related fees
- Operating expenses remain relatively contained, with personnel and G&As up by +3% yoy, reflecting the agreed-upon sectoral wage increases and inflation, respectively, while increased depreciation charges (+11% yoy) derive from our strategic IT investment plan; strong core income growth leads our Group C:CI lower by c17ppts yoy to a historic low of 34% in 1Q23
- CoR at 70bps on the back of zero organic formation, comparing favorably to the FY23 guidance of c80bps