1Q22: Group PAT from continuing operations at €208m; COP at €125m
1Q22 COP up by 32% yoy, reflecting impressive fee income recovery, cost containment and normalizing CoR
o Following Frontier deconsolidation, lower NPE NII accruals partly offset by the sustained expansion of the PE book (+€1.5b yoy). Overall, NII just 3% lower yoy
o Reflecting our successful transformation initiatives, fee income surged by 25% yoy, supported by increasing retail and corporate loan origination, with card and intermediation fees driving the sharp upswing
o Operating expenses were further contained on the back of sustained personnel cost reduction (-3% yoy), absorbing accelerating inflationary pressures and the depreciation charges from the roll out of our strategic IT investment plan; C:CI improves further by 160bps yoy to 51.5% in 1Q22
o CoR remains on a gradual normalizing path, reaching 73bps in 1Q22, down by c40bps yoy
o Αttributable net profit reached €360m, including trading gains of €139m
Domestic NPE stock declined further to €2.0b or €0.4b net of provisions; domestic NPE ratio at 6.5%
o NPE reduction continues (-€127m qoq), with organic NPE flows remaining negative
o NPE ratio of 6.5% in Greece (6.7% at the Group level), down by c40bps qoq and c670bps yoy
o Domestic NPE coverage keeps rising, reaching 81.8% in 1Q22 (+c430bps qoq), despite CoR normalization
o Despite uncertainty and inflationary pressures, the payment performance of clients receiving State and Bank sponsored programs remains reassuring, with default rate in low single digits. Additionally, there is no sign of delinquencies from the recent surge in inflation
Domestic PE loan book expansion at €1.5b yoy
o Despite uncertainty, loan disbursements1 increased by c50% yoy on strong retail (+41% yoy) and corporate credit extension (+52% yoy), pushing domestic PEs higher yoy by €1.5b
o €0.8b of disbursements1 in 2Q22 to mid-May
CET1 FL and total capital ratio FL reach 15.1%2 and 16.2%2 respectively
o CET1 FL and total capital ratio FL increase by +c20bps and +c70bps qoq, supported by organic profitability and the closure of the Ethniki Insurance transaction, and stand at sector-high levels of 15,1%2 and 16,2%2, respectively
o The closing of the agreement with EVO Payments, expected in 4Q22, will add c65bps to capital ratios
Our successful Transformation Program creates strong momentum for change
o Our Transformation Program continues to provide NBG with a competitive edge, as our mechanism to drive and sustain change; we are moving decisively towards a more agile business model, leveraging new technologies, data analytics and partnerships to enhance client experience
o Our digital transformation continues to demonstrate impressive results, with digital subscribers reaching 3.5m (+11% yoy) and active users reaching 2.5m (+16% yoy); only 3% of transactions remain in branches, allowing us to capture efficiencies in our operating model
o On ESG we are implementing initiatives to lead the market in terms of sustainable energy financing and materially support the green transition of businesses and households; at the same time, we continue to invest in environmentally responsible practices at NBG and across Greece