Post on 07-Jul-2020
Corporate Presentation
December 2019
Table of Contents
1 Overview
2 Financial Highlights
3 Profitability
4 Asset Quality
5 Liquidity
6 Capital
7 Macro
8 Appendix
Overview
1
3 Corporate Presentation – December 2019
NBG has a large and stable client base and is a highly trusted bank in Greece
36% savings deposits market
share in a total market of
~€55b2
Well-established,
long lasting
Corporate relationships
5.3MM active retail
customers in a Greek bankable
population of ~8.3M1
Trusted brand, testified by
client loyalty and marketing
surveys
1. NBG Customer Analytics (Greek population >20 years old, based on Hellenic Statistical Authority census, 2018) | 2. Bank of Greece – statistics of monetary deposits
Overview
4 Corporate Presentation – December 2019
Cash coverage and low cost liquidity are our key strengths
Highest NPE coverage in the market Strongest liquidity position
Core deposits2
€b
21.9
Greek peers averageNBG
30.2
Loan to deposit ratio
%
68
90
Greek peers averageNBG
Gross NPE
Group, €b
5.5
10.9
6.6
9.712.2
NBG Greek peers average
21.7
Unprovided
Provided
47%55%Total provision
coverage
1
Yield3 3bps
Market
share231%
LCR
NSFR
198%
116%
Note: Group level 9Μ19 figures
1. Average of NPE stock for Greek systemic banks (excluding NBG group). Source: 9Μ19 financial reports | 2. Core deposits includes savings, sights & other on the domestic market – market share based on the sum of the four systemic banks | 3.
Average funding cost on savings deposits
Overview
5 Corporate Presentation – December 2019
Our six strategic priorities for 2019-2022
CLEAN-UP
THE BALANCE
SHEET
MOBILISE OUR
PEOPLE
Front-load NPE clean-up delivering a
~5% NPE ratio
Reward performance and motivate our
people aligning individual objectives to
strategic goalsA D
IMPROVE
VISIBILITY &
CONTROL
ENHANCE
EFFICIENCY
& AGILITY
Complete FTE reductions and G&A
rationalisation supporting C:I drop to
~45%
Enhance client planning and steering tools
enabling value and risk-based decisionsB E
UPGRADE
TECHNOLOGY
INFRASTRUCTURE
BOOST
REVENUE
GENERATION
Improve sales and service orientation
growing non-risk income and shifting
transactions to digital channels
Invest to modernize the technology
infrastructure improving efficiency and
service levels
C F
Overview
6 Corporate Presentation – December 2019
NPE stock and coverage
2018YE, Group, €b
A clean bank with an NPE ratio of ~5% in 2022
Strategic directions
• Material NPE reduction by 2020,
driven by sales in the consumer, SBL
and corporate portfolios
• More concessionary restructurings
and friendlier legal framework to
increase recoverable value in the
mortgages portfolio
• Large mortgage securitisations
in 2021–22, when market conditions
have further improved and
restructuring efforts have been
explored
• Internal REO platform to cover the
entire value chain from onboarding
to commercialisation, supporting
liquidation targets
NPE evolution targets
Group, €b
~1.7
~4.7
~2.3
2018
~2.9
~4.4
2019 2020 2021 2022 2022YE
~16.3
~5%
>50%
NPE Ratio
S3 Coverage
FNPEs <90dpd ~€1BN
~50% inorganic reduction 2019-2022
78%
Mortgages
42%89%
Corporate, SME & ShippingConsumer
66%
SBL
60%
Subsidiaries
Total Provisions
~7.0
~1.4~1.9
~4.9
~0.9
Overview
7 Corporate Presentation – December 2019
Efficient and more agile operations, with fewer people and a lower cost base
Strategic directions
• Focused exit solutions to release FTE
capacity and increase average employee
productivity
• Efficiency improvement via
back-office centralisation and process
automation (e.g. mortgage lending,
retail restructuring) and alternative
channels
• Branch footprint rationalisation
• Central functions real estate
optimisation
• G&A reduction through the
introduction of a cost control function
and a stronger procurement function
Staff cost1 targets
Group, €m
FTE targets
Bank, #
Branch2 targets
Bank, #
20222017 2018
~9,500 ~8,850~7,150
-20%
~1,500 net
reduction by
2020YE
~485 ~460~390
20192017 2018
-15%
560
2018 2022
~450
-20%
230~180
2018 2022
-20%
G&A expenses targets
Group, €m
1. Excludes LEPETE (Auxiliary fund) charges | 2. Excluding transaction centres & i-Stores, i.e. satellite units with limited commercial purpose
Overview
8 Corporate Presentation – December 2019
9M19
A clean and profitable bank in 2022 – the Greek bank of choice
2018 2022 targets
CET1
Cost : Income2
NPE ratio
ROE <0% ~11%
41% ~5%
75% ~45%
16.1% ~15%
Note: Group level figures
1. ROE for 9M19 calculated as PAT (Cont. Operations) excluding non-recurring items, as well as trading and other income; 9M19 reported ROE (Cont. Operations) at 10.3%, excluding non-recurring items, 2. Excluding VES & restructuring costs,
3. Cost to Core Income (excluding trading & other income of €257m in 9M19), 4. Including 9M19 PAT and the impact of agreed divestments in Romania, Egypt and Cyprus
Overview
4.1%1
34%
57%3
16.8%4
9 Corporate Presentation – December 2019
Transformation Program is picking up pace, supporting the delivery of our targets – NPEs and Cost
Achievements to date Key metrics 6M19 9M19
NPEs
Healthy
Balance
Sheet
• Frontloaded NPE portfolio sales (Symbol, Mirror,
Leo, Icon, Romania, Cyprus)
• Branch restructuring capacity increase (c230
dedicated officers, c40 specialised hubs), new Split
& Settle product and streamlined process for retail
restructurings
• REO unit for end-to-end management of
repossessed assets
NPE sales ytd (€ bn) c.1.7 c.2.9
Split & Settle
restructurings, 3m average
(€ m)
c.61 c.74
COST
Efficiency &
Agility
• Additional waves of open and targeted VES
• 3rd party personnel review program
• Branch network consolidation
• Central functions real estate optimisation
• G&A crash program and enhanced cost
management (new demand management unit,
increased procurement centralisation)
VES acceptance ytd (FTEs) c.530 c.580
3rd party personnel release
ytd (FTEs)c.65 c.105
Branches consolidated ytd
(#)59 64
G&A reduction yoy (%) -9% -13%
Sep 2019 at
c.€97m
c.700 ytd
10 Corporate Presentation – December 2019
Transformation Program is picking up pace, supporting the delivery of our targets – Core Income
Achievements to date Key metrics 6M19 9M19
CORE
INCOME>
Best Bank for
our Clients
(Corporate)
• Revamped Structured Finance team and
strengthened RM workforce for SME and Mid-
Caps (+20 new RMs)
• Rollout of 27 Corporate Branches across Greece
• New cross-selling platform setup ongoing
• New “fast-track” credit process
Fees growth yoy -3% -2%
Disbursements growth yoy +48% +34%
Clients/RM (#) c.100 c.100
CORE
INCOME>
Best Bank for
our Clients
(Retail)
• Strengthened RM workforce for Premium
(c.340) and SB (c.520) segments
• ‘Pockets of value’ program for Mass segment
in-place (e.g., credit cards)
• New product bundles and cross-selling of
fee-generating products
• Digital migration program to increase digital
subscribers, usage and sales (incl. re-launched
internet and mobile banking and upcoming
innovations by year-end)
Fees growth yoy +9% +12%
Disbursements growth yoy +37% +38%
Merchant turnover growth
yoy+18% +18%
Digital transactions
(% of total)84.6% 85.0%
Digital monthly active
users (thousands)936 957
at c.130 at
end-2018
11 Corporate Presentation – December 2019
Enablers continue to advance at a good pace
Achievements to date
Technology &
Processes• Reengineered lending processes (e.g., retail restructuring, mortgage, SB lending, Corporate back-office) leading to
reduced process time (40-55%) and freed-up capacity (c.130 FTEs ytd)
• Preparation for Core Branding System (CBS) renewal
• Migration to new Card Management System (CMS) and full deployment of Enterprise Data Warehouse (EDW)
• Renewed internet and mobile banking platforms with enhanced capabilities
People,
Organisation
& Governance
• Top-level organization and new management team in place to effect change
• New HR management framework/ labor code revision in progress
• New performance management system and executive balanced score cards in place
• Culture/change management program in-train
Visibility,
Compliance &
Controls• Enhanced VBM framework, planning/stress testing tools and management reporting
• New Internal Controls, Operational Risk and Strategic Risk Management units in place
• Data governance and data quality program ongoing
Financial Highlights
2
13 Corporate Presentation – December 2019
€ m 9M19 9M18 YoY 3Q19 2Q19 QoQ
NII 898 840 +7% 300 309 -3%
Net Fees & Commissions 184 175 +5% 64 61 +5%
Core Income 1 082 1 015 +7% 364 370 -2%
Trading & other income 2571 (24) n/m 106 51 >100%
Income 1 339 991 +35% 470 421 +12%
Operating Expenses (621) (664) -7% (213) (204) +4%2
Core PPI 461 351 +32% 151 165 -9%
PPI 719 326 >100% 257 217 +19%
Loan Impairments (303) (238)3 +27% (99) (101) -2%
Operating Profit 416 88 >100% 158 116 +37%
Core Operating Profit 158 113 +41% 52 64 -20%
Other impairments 19 (9) n/m 16 11 +44%
PBT 434 79 >100% 173 126 +37%
Taxes (11) (18) -38% (3) (5) -43%
PAT (cont. ops) 423 61 >100% 171 122 +40%
PAT (discont. ops) 119 43 >100% 16 82 -80%
LEPETE (36) - n/m (36) - n/m
VES & other restr. costs4 (110) (40) >100% (5) (4) 25%
Minorities (18) (27) -34% (1) (8) -94%
PAT 379 36 >100% 146 192 -24%
P&L Highlights
9M19 PAT from continuing operations reaches €423m against PAT of €61m in 9M18
Highlights
P&L | Group
9M19 Group PAT from continuing operations at €423m (7x up yoy), driven by
the following key P&L movements:
• 9M19 NII up by 7% yoy to €898m, driven by securities interest income and
supported by stabilizing lending NII on total disbursements of €2.2b in the 9m;
3Q19 NII absorbs the cost of the €400m Tier 2 facility issued in July 2019
• Net Fees and Commissions are up by 5% yoy, driven by retail banking fees
(+12% yoy), while corporate banking fees remained subdued (-2% yoy)
• Trading and other income benefits from one off gains relating mainly to the
swap arrangement, a hotel disposal and sovereign bond portfolio sales
• OpEx reduced by 7% yoy reflecting sharply lower domestic personnel costs,
(-8.4% yoy) as VES reductions begin to bear fruit; ytd c700 employees have
accepted the VES offering. Excluding the impact of IFRS16, following tight G&A
cost control, G&As were reduced by 13% yoy in the 9M2. As a result, 9M19 C:CI
dropped to 57% vs 65% a year ago, despite the adverse impact from the
implementation of IFRS16 (1ppt)
• CoR remains within guidance at 136bps in 9M19 relative to 124bps5 in 9M18,
including additional provisions related to the sale of international loan portfolios
Core income expansion, cost containment and low CoR, despite the aggressive clean
up of the NPE book, lead core operating profit higher by 41% yoy to €158m;
including trading & other income, operating profit reaches €416m (+4.5x up yoy)
9M19 PAT from discontinued operations of €119m, aided by the capital gain from
the Pangaea sale (€60m), absorbing VES, one offs and other restructuring costs
1. Includes €65m of trading gain from the GGB swap, a €30m capital gain from Grand Hotel disposal and a €118m gain from the sale of sovereign bonds, 2. 3Q19 OpEx (+4% qoq) is due to higher depreciation charges
reflecting the full IFRS16 impact post Pangaea deconsolidation, 3. Includes recoveries of €42m from NPL sales, 4. VES costs of €94m in 1Q19 and other restructuring costs of €7m in 1Q19, €4m in 2Q19 & €5m in 3Q19,
5. 9Μ19 CoR of 124bps excludes recoveries of €42m from the sale of an unsecured 90dpd portfolio (Project Earth); reported CoR at 104bps
14 Corporate Presentation – December 2019
NPE reduction accelerates (-€1.5b in 3Q19 / -€4.0b in 9M19); CET1 ratio continues to increase to 16.8%1 (+80bps qoq)
Asset Quality, Liquidity & Capital Highlights Key Ratios | Group
3Q19 2Q19 1Q19 4Q18 3Q18
Liquidity
Loans-to-Deposits 68% 70% 71% 70% 72%
LCR 198% 171% 151% 144% 103%
NSFR 116% 113% 113% 108% 124%
Profitability
NIM (bps) 270 276 263 260 268
Cost-to-Core Income 58% 55% 58% 64% 68%
Cost of Risk (bps) 135 135 136 81 108
Risk Adjusted NIM 135 141 127 179 160
Asset quality
NPE ratio 34.2% 36.5% 38.9% 40.9% 42.2%
NPE coverage 54.8% 56.0% 58.6% 59.1% 59.9%
Capital
CET1 16.8%1 16.0%1 15.7% 16.1% 16.4%
CET1 FL 13.4%1 12.6%1 12.7% 12.8% 13.0%
RWAs (€ bn) 37.01 37.41 35.1 35.0 35.0
Highlights
Domestic NPE reduction picks up in 3Q19
• NPE reduction accelerates in 3Q19, driven by the corporate and shipping
portfolio sales (-€1.2b), as well as organic means, mainly debt forgiveness and
liquidations
• As Bank NPEs have been reduced by €4.0b ytd, the Bank is already close to
fulfilling the FY19 SSM NPE reduction target of €4.3b
• High NPE coverage levels and a favourable conjuncture including the bond and
real estate markets, allow for a quicker clean up of the NPE book
Domestic deposits up 3.5% yoy
• Domestic deposits stabilize in 3Q19, despite State deposit outflows; LCR & NSFR
ratios are kept at levels well above 100%, exceeding regulatory thresholds
• Despite negative seasonality in 3Q, 9M19 NBG domestic credit disbursements
reach €2.2b up by almost 40% yoy, driven by corporates
CET1 ratio at 16.8%3 , CET1 FL ratio at 13.4%3
• 3Q19 CET1 of 16.8%3, up by 80bps qoq on the back of strong 9M19 PAT and
FVTOCI bond valuation gains. Excluding the impact of agreed divestments, CET1
stood at 16.4% comfortably above the 2019 and 2020 SREP levels .The sale of
Ethniki Insurance in early 2020 is expected to push up capital ratios substantially
• Total Capital ratio settles at 17.7%3, up by 80bps qoq
1. Pro forma for period PAT and the impact of agreed divestments in Romania, Egypt and Cyprus
Profitability
3
16 Corporate Presentation – December 2019
Group operating profit bridge 9M19 (€ m)
1. Includes €65m trading gain from the GGB swap arrangement, €30m capital gain from Grand Hotel disposal and €118m gain from the sale of sovereign bonds
2. 9M18 loan impairments benefit from €42m of recoveries from the sale of an unsecured 90dpd portfolio (Project Earth)
3. All margins calculated over net loans
4. Excludes the €42m recoveries from the NPL sale; underlying CoR at 124bps
9M19 Group operating profit reaches €416m driven by strong operating performance and trading gains
Profitability
Group operating margin decomposition3 9M19 (bps)
88
+57
+44 +10
+281
-65
416
9M18 ΔNII ΔOpEx ΔFees ΔNon Core
Income
ΔLoan
Impairments
9M19
€213m due
to one off
capital gains
145
322 349
-104-136 -135
9M18 9M19 3Q19
41 186
41688
Group PPI
margin (bps)
Group
CoR (bps)
Group operating
margin (bps)
Group operating
profit (€m)
214
158
+€111m Core PPI yoy
1
2
4
17 Corporate Presentation – December 2019
Domestic lending income decomposition (€ m)
Domestic NIM & CoR (bps)
1. NIM calculated on a daily average basis
9M19 NII up by 7% yoy to €898m; 3Q19 NII remains strong, incorporating Tier 2 issuance in July
Profitability
Domestic risk adj NII (€ m)
Domestic NII breakdown (€ m)
3Q18 4Q18 1Q19 2Q19 3Q19
Loans 283 290 285 280 282
Deposits -38 -40 -40 -41 -37
Securities 26 28 40 63 56
Eurosystem &
wholesale-14 -17 -14 -12 -19
Subs & other 0 -2 3 3 2
Total 258 259 274 293 284
265 257 262275
269
109
83
139140
32
3Q18 4Q18 1Q19 2Q19 3Q19
NIM1
CoR
209
628
74
219
3Q19 9M19
Lending interest
income (€m)
PE interest
income €m)
274293 284
-100 -100
-23
1Q19 2Q19 3Q19
Domestic
risk adj NIΙ
(€m)
Loan
impairment
(€m)
NII (€m)
NPE interest
income (€m)
o/w in 9M19:
c41% cash
c31% provided
Down qoq
due to bond
sales
Due to the
€400m T2
issue in July
Factoring in
positive house
price movement
Factoring in
positive house
price movement
282 847174 193 261
18 Corporate Presentation – December 2019
18.9 19.3 19.3 19.9 20.3
8.49.5 9.7 9.8 9.8
12.813.0 12.2 11.9 11.2
40.041.7 41.2 41.6 41.4
3Q18 4Q18 1Q19 2Q19 3Q19
Time
Sight &
other
Savings
+3.5% yoy
Greek deposit yields (bps)
3 3 3 3 3
79
83
79 80 79
3840 40
37 37
58
52
64
5552
3Q18 4Q18 1Q19 2Q19 3Q19
Ongoing repricing of time deposits and positive mix effect will push blended deposit cost to much lower levels
Profitability
Greek deposits evolution (€ b)
Term
Total
68% 73% Core deposits/total
Savings
+€1.4 b yoy
Sight
Due to
one key
account
Due to State
outflows of
€0.5b qoq and
€1.8b ytd
New
production
at 42bps
Market
share
at 36%
19 Corporate Presentation – December 2019
Greek lending yields3 (bps)
Greek loan evolution (€ b)Greek forborne, PE & total lending yields
217 216 219 217 215
882 877 855 871 867
653 665 655 635 649
398 398 384 375 372
3Q18 4Q18 1Q19 2Q19 3Q19
8.7 8.5 8.4 8.2 8.0
1.7 1.7 1.7 1.6 1.6
1.0 1.0 1.0 1.0 0.9
10.4 11.0 11.5 11.9 11.8
21.822.3 22.6 22.7
22.3
3Q18 4Q18 1Q19 2Q19 3Q19
Corporate
SBL
Consumer
Mortgages
1. Includes NPEs
2. Includes FPEs & FNPEs
3. Calculated on performing loans
4. Performing loans = Gross loans – NPEs
Corporate performing loans expand by €1.4b yoy, driven by disbursements of €3.0b over the same period
Profitability
Consumer
SBLs
Corporate
Mortgages
+2.3% yoy
28.4 28.8 28.7 28.6 27.7 Net loans
Performing loans4
at 374bps
at 376bps
at 665bps
new
production
at 987bps
3.8% 3.8% 3.7% 3.7% 3.7%
2.6% 2.5%2.6%
2.5%2.4%
3Q18 4Q18 1Q19 2Q19 3Q19
Performing
Forborne2
Total Book
3.6%
3.7% 3.6%3.6% 3.5%
Total1
+12.9% yoy
378 378 373 368 366
20 Corporate Presentation – December 2019
Domestic retail fees decomposition (€ m)Domestic fees (€ m)
30 32
8089
21 21
65
64
8 8
20
21
58 60
165
174
2Q19 3Q19 Column2 9M18 9M19
Retail Fees Wholesale Fees Fund mgm, Brokerage & other
14 14
44 43
7 6
65 64
9M18 9M19
Investment banking
& other
Non lending fees
Lending fees
12 14
1721
1517
910
27
27
80
89
9M18 9M19
Intermediation &
otherBancassurance
Digital channels
Cards
Lending fees
1: Domestic, excluding assets held for sale
9M19 retail fees, up by 12% yoy, driven by card, digital channel and lending related fees
YoY
+1.4%
YoY
-2.2%
+5.8%
+5.4%
0.41% 0.42% 0.40% 0.41% Fees/Assets1
Domestic wholesale fees decomposition (€ m)
-14.5%
-1.3%
-2.2%
YoY
+17.2%
+21.4%
+14.8%
+13.4%
+1.0%
+11.7%
+11.7%
21 Corporate Presentation – December 2019
Domestic Branch evolution (#)
Group OpEx by category (€ m)
Ongoing cost reduction initiatives successful: 9M19 domestic personnel costs down by 8% yoy, G&As down by 13%1
Profitability
Group headcount evolution (‘000)
Domestic OpEx evolution (€ m)
Greece Group
9M19 9M18 YoY 9M19 9M18 YoY
Personnel 371 405 -8.4% 387 422 -8.4%
G&As 137 174 -21.3% 147 187 -21.4%
Depreciation 84 53 +59.7% 87 55 +58.2%
Total 592 631 -6.3% 621 664 -6.6%
C:CI 58% 66% -8ppts 57% 65% -8ppts
528 527
510
486461
438
402397 391
FY14 FY15 FY16 FY17 FY18 1Q19 2Q19 3Q19 Nov-19
15.012.2 12.0
9.9 9.8 9.2 9.1 8.7 8.6
10.1
7.9 7.8
1.6 1.2 1.1 1.1 1.1 1.1
25.1
20.1 19.8
11.5 11.0 10.3 10.2 9.8 9.7
FY09 1 FY14 FY15 FY16 FY17 FY18 1Q19 2Q19 3Q19
SEE &
Other
Greece
1. Adjusted for IFRS16 impact on depreciation due to Pangaea deconsolidation
2. Excludes employees at discontinued operations
136 131 127 124 120
79 74 68 70 85
215205
195 194204
3Q18 4Q18 1Q19 2Q19 3Q19
2
c700 FTEs
less ytd
-70 branches
ytd
Reflects IFRS16
G&A / Depr.
reclassifications
-13% yoy net
of IFRS16
impact
Up qoq due to incorporation
of the full IFRS16 impact on
depreciation in 3Q19 upon
Pangaea deconsolidation
G&As / other
Personnel
Asset quality
4
23 Corporate Presentation – December 2019
Bank NPE reduction channels & target (€ b)
NPE operational performance Bank NPE reduction targets (€ b)
11.4
-3.7
-2.2
-3.6 -0.3
1.6
9M19 Sales &
securitizations
Liquidations Formation,
recov & debt
fgv.
Write offs &
other
FY22
NPE reduction reaches €4.0b ytd, near the FY19 target; developments bode well for further acceleration in 2020
Asset Quality
• NPEs reduced by €4.0b ytd, of which €1.5b in 3Q19
• Remaining effort of just €0.3b to reach the FY19 target
• The envisaged NPE reduction is accelerated by positive
developments in the APS securitization scheme, the new
law on primary residence protection, favorable real estate
price developments and the tightening of sovereign bond
yields
15.2
14.0
12.7
11.1
10.2
9.1
8.07.6
5.7
2.4
0.9
6.4
-2.8 4
-1.4 4.6
-2.0
-1.1 4.1
-1.4 3
-1.5 -0.3
-2.2
-4.6
-2.8
21.5
18.7
17.3
15.4
14.3
12.9
11.4 11.1
8.9
4.3
1.6
+90dpd
NPEs
-9.8
Remaining
effort:
€9.8b
Achieved:
€10.1b
24 Corporate Presentation – December 2019
Domestic NPE stock evolution (€ b)
NPE balance change (€ m, Bank)Domestic NPE stock per category – 3Q19 (€ b)
1. Before write-offs
NPE stock reduction of €1.5b in 3Q19, reflects sales (-€1.2b) and sustained negative organic formation1
Asset Quality
11.6
8.1
5.1
0.5 0.81.6
1.6
0.10.2
1.5
6.7
0.71.0
3.1
Mortgages Consumer SBL Corporate
FNPE & other
impaired
90dpd
11.5 11.2 10.3 9.3 8.1
4.6 4.34.1
3.83.5
16.1 15.614.5
13.111.6
3Q18 4Q18 1Q19 2Q19 3Q19
FNPEs & other
impaired
90dpd
42.5% 41.1% 39.0% 36.5% 34.1%NPE ratio -337 -985 -1.350 -1.423-2NPE reduction
before w.o.
383 351 406 395 332
-385
-688 -664-781
-592
-727-963
-1,163
-68 -226 -94 -58 -41
3Q18 4Q18 1Q19 2Q19 3Q19
NPE inflows
Curings
Sales/securit. Symbol sale
Mirror sale
Write-offs
o/w: debt
forgiveness
€0.2b
-299
-294
Debt fgv, recoveries
liquidations -431
-350
-221
-443
-364
-324-36
-349
NPE outflows
Icon & Leo
sales
25 Corporate Presentation – December 2019
Mortgages (€ m)
1. Bank perimeter, excluding write offs
Asset Quality
Bank NPE1 reduction across all lines of business is sustained throughout the year, driven by multiple sales
Consumer (€ m) NPE change* (€ m)
SBLs (€ m) Corporate (€ m)
42
-53-40
-179-149
3Q18 4Q18 1Q19 2Q19 3Q19
24
-47 -8
-701
-33
3Q18 4Q18 1Q19 2Q19 3Q19
0
-61
-446
-239 -242
3Q18 4Q18 1Q19 2Q19 3Q19
-68-176
-490
-230
-1,000
3Q18 4Q18 1Q19 2Q19 3Q19
-264
-2
-337
-985
-1,350
-1,423
2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
Symbol sale
(€0.7b)
Mirror sale
(€1.0b)
Icon (€0.9b) &
Leo sales (€0.2b)
Icon
(€0.7b) &
Leo sales
(€0.2b)Icon
sale
(€0.2b)
Includes Mirror
sale (€0.7b)
Symbol
sale (€0.4b) Symbol sale
(€0.3b)
Debt forgiveness
Mirror
sale
(€0.2b)
26 Corporate Presentation – December 2019
Domestic NPE ratios and coverage | 3Q19
Domestic 90dpd ratios and coverage | 3Q19
51%
109%
97%
134%76.7% 76.6%
35%
24%
42%
11%
23.9% 24.4%
Mortgages Consumer SBL Corporate Total GRE Group
39%
85%
80%
70%53.8% 54.8%
45%
30%
51%
21%
34.1% 34.2%
Mortgages Consumer SBL Corporate Total GRE Group
1. Collateral coverages are Bank level.
2. NPE coverage incorporates additional haircuts on the market value of collateral.
High NPE coverage and positive systemic developments allow for frontloading of the NPE reduction plan
Asset Quality
Domestic forborne stock (€ b) 3Q19
Domestic 90dpd – NPE bridge (€ b) | 3Q19
8.1
2.6 0.6 0.3 11.6
90dpd FNPE <30 FNPE 31-90 Other impaired NPEs
FNPE<30 dpd
2.6
FNPE 31-90dpd
0.6
FNPE >90dpd
1.8
FPE 2.5
90dpd
coverage
NPE
coverage2
18% 26% 41% 15% 18%LLAs/
Gross loans
7.5
Collateral
coverage174% 24% 68% 58% 66%
Collateral
coverage170% 24% 64% 58% 64%
27 Corporate Presentation – December 2019
Group loan staging and evolution (€ b)
Asset Quality
Stage 3 loans are being replaced by Stage 1 loans
Group Stage 2 ratios and coverage (%) Group Stage 3 ratios and coverage (%)
15.9 16.1 16.3 16.4
7.5 7.6 7.4 7.1
16.1 15.013.6 12.1
31.12.18 31.03.19 30.06.19 30.09.19
Stage 3
Stage 2
Stage 1
-0.4
+0.5
Δ ytd
-4.0
55.5%54.9%
51.8%50.6%
40.9%
38.9%
36.4%
34.1%
31.12.18 31.03.19 30.06.19 30.09.19
Coverage
5.9% 5.5% 5.8% 5.1%
18.9%19.6% 19.9% 19.9%
31.12.18 31.03.19 30.06.19 30.09.19
Ratio
Ratio
Coverage
o/w:
€2.5b FPEs
€4.2b SICR
€0.4b +30dpd
28 Corporate Presentation – December 2019
Scheduled auctions (09.2019)1
1 The sources for scheduled auctions are the following:
→The judiciary Publications Bulletin and the special website for the web publishing of auctions, that works under the authority of the Legal Professionals' Insurance Fund
→The website of the Independent Authority of Public Revenue
→The website of the Federation of Bailiffs
→Auctions' notifications served by a Bailiff to the Legal Services of the Bank when a mortgaged property is auctioned
Asset Quality
Auctions gather pace in 3Q19 reaching 1Q19 levels, despite seasonality
NBG auctions outcome 3Q19 Auctioned assets (NBG only)
1,332
1,858
1,577
547
NBG Peer 1 Peer 2 Peer 3
Held
Successful
Not successful
20%
29%
51%
3Q19
Suspended
49%
33
271
478
1,482
741
653
742
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19
2018 effort was
back-loaded due to
slow start in 1H18
slow down due to
national elections
no auctions in
August
29 Corporate Presentation – December 2019
Portfolio Status Size
Completed/
Estimated
completion Transaction details
Consumer unsecured Closed €0.1b June 2016 Priced at €16c
Project Earth Closed €2.0b July 2018
Capital accretive (+18bps)
and P&L positive.
Priced at €6c
Project Symbol SPA signed c€0.9b 4Q19
Capital accretive. Priced
at c28% of the principal
portfolio amount
Project Mirror Closed c€1.2b 4Q19
Capital accretive. Priced
at >9% of the principal
portfolio amount
Project Leo SPA signed c€0.3b 4Q19Portfolio of
shipping loans
Project Icon NBOs received c€0.9b 4Q19
Portfolio of denounced,
non operating corporates,
SME & SBLs
Secured/Unsecured
corporateNBOs received c€0.2b 4Q19
Portfolio of real-estate
backed non-operating
corporate loans
Secured/ Unsecured
Corporate & retailLaunched c€0.3b 4Q19
Portfolio of corporate &
retail loans
Asset Quality
NPΕ transactions completed and near completion
Schedule
Liquidity
5
31 Corporate Presentation – December 2019Liquidity
Further optimization of the funding profile has pushed interbank exposures to lower levels; Deposit base currently
accounts for 88% of total funding
Eurosystem funding(Bank, €b)
11.0
6.1
5.2 5.6
5.63.8
2.3
22.8
14.9
12.6 12.3
10.2
8.4
6.0
2.8 2.8 2.8 2.3 2.3 2.3 2.3 2.3 2.3
2Q16 4Q16 2Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19Nov 19
ECB ELA
TLTRO
Interbank funding(Bank, net, €b)
3.33.4
3.3 3.3 3.3
1.6
0.9
0.2
Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19
Funding structure(average, %)
63%
25%
5%5%
4%
Time Deposits
Current & Sight Deposits
ECB
Interbank
Long-term debt
Including €400mn
Tier II
32 Corporate Presentation – December 2019
Group LCR
Deposit evolution by geography (€ b)
40.0 41.7 41.2 41.6 41.4
1.3 1.3 1.3 1.3 1.4
3Q18 4Q18 1Q19 2Q19 3Q19
-2.2
-4.8-3.6
0.8
0.0
0.9
0.2
1.70.9 1.7 0.4
-0.2
4Q14 1Q15 2Q15 4Q15 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 3Q19
Domestic deposit recovery (+3.5% yoy) continues
YoY
+3.5%
+7.7%
Group
SEE &
Other
+3.6%41.3 43.0 42.5 42.9 42.8
Greece-€10.6b +€6.0b
124%
144%151%
171%
198%
3Q18 4Q18 1Q19 2Q19 3Q19
NSFR at
116%
NBG domestic deposit flows per quarter (€ b)
Liquidity
Capital
6
34 Corporate Presentation – December 20191. CET1 and Total Capital Ratios are pro forma for 9M19 PAT and the impact of agreed divestments in Romania and Egypt, as well as Cyprus
Capital
CET1 & Total Capital ratio at 16.8%1 & 17.7%1
14.8%+0.34% +0.11% 15.2%
+1.11% 16.4%+0.4% 16.8%
+13.8%
CET1 2Q19 FVTOCI net of SI RWAs & Other 3Q19A 9M19 PAT 3Q19 including
9M19 PAT
BROM, Cairo &
Cyprus disposals
3Q19PF 2019 SREP capital
requirements
3Q19 CET1 ratio movement
RWAs
(€ b)
CET1:
€6.2b
CET1:
10.25%
OCR:
13.75%
CET1 FL:
13.4%
Total Capital ratio
at 17.7%
38.2 37.8 37.0
CET1 FL:
13.1%
CET1:
€6.2b
CET1:
€5.8b
Macro
7
36 Corporate Presentation – December 2019
Macroeconomic tailwinds and recovery of banking fundamentals
16.5
2018
19.3
15.5
17.7
20212019 2020
14.8
2022
20202018
1.9 2.0
2019
1.81.8
2021
1.7
2022
100
2021
106
2018 2019
103
2020
109112
2022
373296 293 301 311
20212018 20222019 2020
20222018 20212019 2020
3.6
1.9
3.9 3.5 3.2
20232018 20193 2020 20222021
-13.5
11.55.9 6.2 6.4 6.6
Greek 10yr
sovereign bond
spread over G.
Bund2
(bps)
Unemployment
rate (%)1
GDP growth (%)1
Gross fixed
capital formation
excl. residential
(nominal,
yoy growth)
Private sector
disposable
income
(nominal,
yoy growth)
Sources: ELSTAT, Focus Economics Consensus, NBG - Economic Analysis Division estimates
Sources: Bank of Greece, NBG - Economic Analysis Division estimates
Sources: Focus Economics, NBG - Economic Analysis Division estimates
House Price Index
(rebased to 2018)
Sources: ELSTAT, Focus Economics Consensus, NBG - Economic Analysis Division estimates
Sources: ELSTAT, Focus Economics Consensus, NBG - Economic Analysis Division estimates
Sources: ELSTAT, Focus Economics Consensus, NBG - Economic Analysis Division estimates
1. Average annual | 2. Average of quarterly spreads | 3. 2019 Fixed capital formation based on NBG economic analysis estimates, accounting for a positive base effect and transfer of public investments from 2018 to 2019
Macro
37 Corporate Presentation – December 2019
Sources: EL.STAT., Bank of Greece, EU Commission & NBG Economic Analysis estimates
Macro
Activity is expected to accelerate in 2H19, supported by buoyant sentiment, solid tourism and rising
disposable income
Economic sentiment & real GDP growth Employment growth – Unemployment rate
60
70
80
90
100
110
120
-12
-8
-4
0
4
8
3Q
07
2Q
08
1Q
09
4Q
09
3Q
10
2Q
11
1Q
12
4Q
12
3Q
13
2Q
14
1Q
15
4Q
15
3Q
16
2Q
17
1Q
18
4Q
18
3Q
19
GDP growth (left axis)
EC Economic sentiment indicator (right axis)
y-o-y
index
Oct.19
0
6
12
18
24
30
-12
-6
0
6
12
18
1Q
09
3Q
09
1Q
10
3Q
10
1Q
11
3Q
11
1Q
12
3Q
12
1Q
13
3Q
13
1Q
14
3Q
14
1Q
15
3Q
15
1Q
16
3Q
16
1Q
17
3Q
17
1Q
18
3Q
18
1Q
19
3Q
19
*
Employment growth (left axis) Unemployment rate (right axis)
%y-o-y
** 3Q19: average of Jul.-Aug.19
-10
-5
0
5
10
15
20
25
-10
-5
0
5
10
15
20
25
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
8M
19
*
Tourist arrivals (excl. cruises, y-o-y)
Tourism receipts (excl. cruises, y-o-y)
Exports of goods (real, y-o-y)
y-o-y
*1H19 data for exports of goods
Tourism receipts, arrivals & exports of goods Households’ income, confidence & private consumption
-80
-70
-60
-50
-40
-30
-20
-10
0
10
-12
-9
-6
-3
0
3
6
9
200
1
200
2
200
3
200
4
200
5
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
1H
19
3Q
19
Private consumption (real, left axis)
Households' disposable income (real, left axis)
Consumer confidence index (index, right axis)
y-o-y 1H19:+4.5% y-o-y
3Q19: -11.7
index
38 Corporate Presentation – December 2019
Sources: EL.STAT., Bank of Greece, Ministry of Finance, EU Commission, IMF & NBG Economic Analysis estimates
Macro
-4
-2
0
2
4
6
8
10-10
-8
-6
-4
-2
0
2
4
201
0
201
1
201
2
201
3
201
4
201
5
201
6
201
7
201
8
201
9e
202
0f
Annual change in cycl. adj. Gen. Gov. Prim. balance (inverted right axis)
Real GDP growth (left axis)
y-o-y
% potential GDP,
inverted axis
State budget – Primary balance (cumulative)
0,5
2,2
1,3
0,1
1,2
0,4
1,8
1,3
0,1
1,1
1,5
2,2
1,5
0,7
1,5
1,0
2,3
1,3
0,4
1,2
0
1
2
3
Germany Greece France Italy Euro area
2019 - Spring 2019 estimate 2019 - Autumn 2019 estimate
2020 - Spring 2019 estimate 2020 - Autumn 2019 estimate
%
2019 2019 2019 2019 20192020 2020 2020 2020 2020
Capacity utilization & manufacturing production
60
63
66
69
72
75
-15
-10
-5
0
5
10
Sep
-12
Jan-1
3
May-13
Sep
-13
Jan-1
4
May-14
Sep
-14
Jan-1
5
May-15
Sep
-15
Jan-1
6
May-16
Sep
-16
Jan-1
7
May-17
Sep
-17
Jan-1
8
May-18
Sep
-18
Jan-1
9
May-19
Sep
-19
Capacity utilization (right axis) Manufacturing production (left axis)
y-o-y,
3m m.a.
%
-0,5
0,0
0,5
1,0
1,5
2,0
2,5
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep.
2017 2018 2019
% GDPexcl. SMP & ANFA
9M19: includes €1.1mn from the extension of AIA concession rights
Fiscal credibility remains high, setting the stage for a further easing in 2020, which will counteract weak
external demand | Manufacturing production and capacity utilization picked up in 3Q19
EU Commission: Real GDP growth forecasts
Fiscal stance & GDP growth
39 Corporate Presentation – December 2019
Sources: Bank of Greece, PDMA, Bloomberg, ThomsonReuters & NBG Economic Analysis estimates
Macro
300
500
700
900
1100
1
2
3
4
5
May-18
Jun
-18
Jul-
18
Aug
-18
Sep
-18
Oct-
18
No
v-18
Dec-18
Jan-1
9
Feb
-19
Mar-
19
Apr-
19
May-19
Jun
-19
Jul-
19
Aug
-19
Sep
-19
Oct-
19
No
v-19
10yr Greek government bond spread (left axis)
ASE general index (right axis)
ASE index - banks (right axis)
% index
mid
-
0
200
400
600
800
1000
1200
1400
0
200
400
600
800
1000
1200
1400
Feb
-17
May-17
Aug
-17
No
v-17
Feb
-18
May-18
Aug
-18
No
v-18
Feb
-19
May-19
Aug
-19
No
v-19
2 years 5 years 10 years
bps
mid rate spread over the respectιve benchmark curve
Greece's sovereign ratings:
Fitch: BB-, stable outlook
S&P: BB-, positive outlook
Moody’s: B1, stable outlook
mid
-
ASE general index & 10yr GGB spread over bund Hellenic Republic, CDS
-16
-12
-8
-4
0
4
8
12
-16
-12
-8
-4
0
4
8
12
2H
11
1H
12
2H
12
1H
13
2H
13
1H
14
2H
14
1H
15
2H
15
1H
16
2H
16
1H
17
2H
17
1H
18
2H
18
1H
19
House prices (total, y-o-y) House prices (Athens, y-o-y)
Office prices (total, y-o-y) Retail space prices (total, y-o-y)
y-o-y
2Q19
Total: +7.7% y-o-y
Athens: +11.1% y-o-y
Residential & commercial real estate prices
-1,0
-0,5
0,0
0,5
1,0
1,5
2,0
-1,0
-0,5
0,0
0,5
1,0
1,5
2,0
Jan-1
8
Feb
-18
Mar-
18
Apr-
18
May-18
Jun
-18
Jul-
18
Aug
-18
Sep
-18
Oct-
18
No
v-18
Dec-18
Jan-1
9
Feb
-19
Mar-
19
Apr-
19
May-19
Jun
-19
Jul-
19
Aug
-19
Sep
-19
Oct-
19
No
v-19
3M T-bill rate
6M T-bill rate
3M Euribor
Interest rate on new time deposits (households, up to 1yr)
%
mid
-
Greek assets finally benefit from falling country risk and looser monetary conditions | Greek government
bond yields near an all-time low, 3M T-bill rate in negative territory and ASE general index at 47% y-t-d
Interest rates: T-bills, 3M Euribor & new time deposits
Appendix
8
41 Corporate Presentation – December 2019
Balance Sheet | Group
Group Balance Sheet & P&L
P&L | Group
€ m 3Q19 2Q19 1Q19 4Q18 3Q18
Cash & Reserves 2 958 1 839 2 570 5 138 4 875
Interbank placements 3 295 3 054 3 072 2 546 1 793
Securities 8 993 10 154 9 123 8 959 8 396
Loans (Gross) 35 645 37 502 38 808 39 600 39 732
Provisions (Stock) (6 579) (7 563) (8 751) (9 466) (9 921)
Goodwill & intangibles 176 160 145 150 140
RoU assets 1 302 1 319 61 - -
Property & equipment 453 456 461 465 460
DTA 4 909 4 909 4 910 4 909 4 914
Other assets 8 229 7 407 6 635 6 013 5 835
Assets held for sale 6 446 5 897 7 183 6 780 6 930
Total assets 65 828 65 131 64 217 65 095 63 153
Interbank liabilities 4 832 5 642 5 743 7 667 6 960
Due to customers 42 809 42 943 42 500 43 027 41 322
Debt securities 1 366 959 963 854 858
Other liabilities 5 167 4 327 4 201 3 218 3 671
Lease liabilities 1 348 1 359 100 - -
Liabilities held for sale 4 408 4 331 4 936 4 691 4 620
Minorities 20 19 696 676 670
Equity 5 880 5 550 5 078 4 962 5 051
Total equity and liabilities 65 828 65 131 64 217 65 095 63 153
Appendix
€ m 3Q19 2Q19 1Q19 4Q18 3Q18
NII 300 309 290 275 275
Net fees & commissions 64 61 59 66 58
Core Income 364 370 349 341 333
Trading & other income 106 51 100 (47) (6)
Income 470 421 448 294 327
Operating Expenses (213) (204) (204) (218) (227)
Core Pre-Provision Income 151 165 145 123 106
Pre-Provision Income 257 217 245 76 100
Loan Impairment (99) (101) (103) (60) (81)
Operating Profit 158 116 142 16 19
Core Operating Profit 52 64 43 62 25
Other impairment 16 11 (8) (1) 1
PBT 173 126 135 15 20
Taxes (3) (5) (4) (7) (6)
PAT (cont. ops) 171 122 131 8 14
PAT (discont ops) 16 82 21 (84) 11
LEPETE (36) - - - -
One-offs (5) (4) (101) (38) -
Minorities (1) (8) (10) (7) (8)
PAT 146 192 41 (120) 17
42 Corporate Presentation – December 2019
Greece
Regional P&L: Greece & Other International
Appendix
Other International
€ m 3Q19 2Q19 1Q19 4Q18 3Q18
NII 284 293 274 259 258
Net fees & commissions 60 58 56 63 54
Core Income 345 351 330 322 313
Trading & other income 105 49 100 (48) (5)
Income 450 400 430 274 307
Operating Expenses (204) (194) (194) (205) (215)
Core Pre-Provision Income 141 156 136 117 98
Pre-Provision Income 246 206 236 70 93
Loan Impairment (23) (100) (100) (59) (78)
Operating Profit 223 105 136 10 15
Core Operating Profit 118 56 36 58 20
Other impairment 16 11 (7) 1 1
PBT 239 116 129 11 16
Taxes (2) (4) (2) (5) (5)
PAT (cont. ops) 237 113 127 6 11
PAT (discont. ops) 20 84 1 (10) 10
LEPETE (36) - - - -
One-offs (5) (4) (101) (38) -
Minorities - (8) (9) (6) (7)
PAT 216 186 18 (48) 14
€ m 3Q19 2Q19 1Q19 4Q18 3Q18
NII 15 16 16 16 17
Net fees & commissions 4 4 3 3 3
Core Income 19 19 19 19 20
Trading & other income 1 3 (0) 1 (1)
Income 20 21 18 20 20
Operating Expenses (9) (10) (10) (13) (12)
Core Pre-Provision Income 10 9 9 6 8
Pre-Provision Income 11 11 9 6 8
Loan Impairment (77) (1) (3) (1) (3)
Operating Profit (66) 10 6 5 4
Core Operating Profit (67) 8 6 4 5
Other impairment (0) (0) (0) (1) (0)
PBT (66) 10 6 4 4
Taxes (1) (1) (1) (3) (1)
PAT (cont. ops) (66) 9 5 1 3
43 Corporate Presentation – December 2019
Evolution of RWAs (€ b)
Appendix
RWA Evolution | Asset-liability mix
Asset mix (€ b) Liability mix (€ b)
Other 16.6
DTA 4.9
SEE & Other net
loans 1.3
Domestic net
loans 27.8
Securities
9.0
Interbank
placements 3.3Cash 3.0
65.8
Assets
Total equity and
minorities 5.9
Other Liabil.
10.9
Debt
securities 1.4
SEE & Other
deposits 1.4
Time 11.2
Current, Sight
& Other 9.8
Savings 20.3
ECB 2.3
Interbank liabil.
2.6
65.8
Liabilities
Domestic
deposits 41.4
61.8
-20.7
41.1
-3.8
37.3
-2.3
35.0+2.8 37.8
RWAs
2015
RWAs
2016
RWAs
2017
FY18 9M19
44 Corporate Presentation – December 2019Appendix
NBG Shareholder structure as at September 2019
HFSF 40.4%
Domestic private &
public legal entities 6.0%
Int'l Institutionals
(private & legal entities)
45.2%
Domestic pension funds &
other 0.4%
Domestic retail
investors 8.0%
45 Corporate Presentation – December 2019
The 3Q19 Financial Results Press Release contains financial information and measures as derived from the Group’s and the Bank’s financial
statements for the period ended 30 September 2019 and for the year ended 31 December 2018, which have been prepared in accordance with
International Accounting Standard 34 “Interim Financial Reporting” and International Financial Reporting Standards (“IFRS”), as endorsed by the EU
respectively. Additionally, it contains financial data which is compiled as a normal part of our financial reporting and management information
systems. For instance, financial items are categorized as foreign or domestic on the basis of the jurisdiction of organization of the individual Group
entity whose separate financial statements record such items.
Moreover, it contains references to certain measures which are not defined under IFRS, including “pre-provision income” (“PPI”), “net interest margin”
and others, as defined below. These measures are non-IFRS financial measures. A non-IFRS financial measure is a measure that measures historical or
future financial performance, financial position or cash flows but which excludes or includes amounts that would not be so adjusted in the most
comparable IFRS measure. The Group believes that the non-IFRS financial measures it presents allow a more meaningful analysis of the Group’s
financial condition and results of operations. However, the non-IFRS financial measures presented are not a substitute for IFRS measures.
Legal
ESMA Alternative Performance Measures (APMs), definition of financial data and ratios used
46 Corporate Presentation – December 2019
Name Abbreviation DefinitionBalance Sheet B/S Statement of Financial Position
Binding Offers / Non Binding Offers BOs / NBOs
Common Equity Tier 1 Ratio CET1 Ratio CET1 capital as defined by Regulation No 575/2013, with the application of the regulatory transitional arrangements for IFRS 9 impact over RWAs
Common Equity Tier 1 Ratio Fully Loaded CET1 FL Ratio CET1 capital as defined by Regulation No 575/2013, without the application of the regulatory transitional arrangements for IFRS 9 impact over RWAs
Core Deposits - Consists of current, sight and other deposits, as well as savings accounts, and exclude repos and time deposits
Core Income CI Net Interest Income (“NII”) + Net fee and commission income
Core Operating Result/ Core Operating Profit /
(Loss)- Core income less operating expenses and loan impairments (impairment charge for credit losses)
Core Operating Margin - Core operating profit / (loss) annualized over average net loans
Core Pre-Provision Income Core PPI Core Income less operating expenses
Core Pre-Provision Margin Core PPI margin Core PPI annualized over average net loans
Cost of Risk / Provisioning Rate CoR Loan impairments of the period annualized over average net loans
Cost-to-Core Income Ratio C:CI Operating expenses over core Income
Cost-to-Income Ratio C:I Operating expenses over total income
Deposit Yields - Annualized interest expense on deposits over deposit balances
Depreciation - Depreciation and amortization on investment property, property & equipment and software & other intangible assets
Equity/Book Value BV Equity attributable to NBG shareholders
Fees/Net Fees/Fees and Commissions - Net fee and commission income
Forborne - Exposures for which forbearance measures have been extended according to EBA ITS technical standards on Forbearance and Non-Performing Exposures
Forborne Non-Performing Exposures FNPEsExposures with forbearance measures that meet the criteria to be considered as non performing according to EBA ITS technical standards on Forbearance and
Non-Performing Exposures
Forborne Performing Exposures FPEsExposures with forbearance measures that do not meet the criteria to be considered as non performing according to EBA ITS technical standards on
Forbearance and Non-Performing Exposures and forborne exposures under probation period
Forborne Yield - Annualized return calculated on the basis of interest income from Forborne loans, over the average accruing Forborne loan balance
Funding cost/Cost of funding - The blended cost of deposits, ECB refinancing, repo transactions, as well as covered bonds and securitization transactions
General and administrative expenses G&As General, administrative and other operating expenses
Gross Book Value GBV Loans and advances to customers before ECL allowance for impairment on loans and advances to customers and mandatorily at FVTPL
Gross Loans - Loans and advances to customers before ECL allowance for impairment on loans and advances to customers
Interest Earning Assets -
Interest earning assets include all assets with interest earning potentials and includes cash and balances with central banks, due from banks, financial assets at
fair value through profit or loss (excluding Equity securities and mutual funds units), loans and advances to customers and investment securities (excluding
equity securities and mutual funds units).
Liquidity Coverage Ratio LCRThe LCR refers to the liquidity buffer on High Quality Liquid Assets (HQLAs) that a Financial Institution holds, in order to withstand net liquidity outflows over a
30 calendar-day stresses period
Loan Impairment - Impairment charge for Expected Credit Loss (ECL) credit losses
Loan / Lending Yield - Annualized loan interest income over gross performing exposures
Loans-to-Deposits Ratio L:D Net loans over total deposits, period end
Appendix
Definition of financial data, ratios used and alternative performance measures
47 Corporate Presentation – December 2019
Name Abbreviation DefinitionNet Fees & Commissions / Fees / Net Fees - Refers to net fee and commission income
Net Interest Income NII Refers to Net Interest Income
Net Interest Margin NIM
Net interest income over average interest earning assets. Net Interest Margin equals net interest income divided by the average of interest earning assets
(the average of interest earning assets at the end of the current year and the end of the previous year and all quarter ends in between (5 periods) for the
year end)..
Net Stable Funding Ratio NSFRThe NSFR refers to the portion of liabilities and capital expected to be sustainable over the time horizon considered by the NSFR over the amount of
stable funding that must be allocated to the various assets, based on their liquidity characteristics and residual maturities
Net Loans - Loans and advances to customers
Net Profit / (Loss) - Profit / (loss) for the period attributable to NBG equity shareholders
Non-Performing Exposures NPEs
Non-performing exposures are defined according to EBA ITS technical standards on Forbearance and Non-Performing Exposures as exposures that satisfy
either or both of the following criteria:
a) Material exposures which are more than 90 days past due
b) The debtor is assessed as unlikely to pay its credit obligations in full without realization of collateral, regardless of the existence of any past due
amount or of the number of days past due.
Non-Performing Exposures Coverage Ratio NPE coverage Stock of provisions over non-performing exposures, excluding loans mandatorily classified as FVTPL, period end
Non-Performing Exposures Organic Formation NPE organic formation Net Balance change, excluding sales & write-offs
Non-Performing Exposures Ratio NPE ratio Non-performing exposures over gross loans, period end
Non-Performing Loans NPLs Loans and advances to customers in arrears for 90 days or more
Non-Staff Costs / Expenses - G&As + Depreciation
90 Days Past Due Coverage Ratio 90dpd coverage Stock of provisions over gross loans in arrears for 90 days or more excluding loans mandatorily classified as FVTPL, period end
90 Days Past Due Ratio 90dpd ratio/ NPL ratio Gross loans that are in arrears for 90 days or more over gross loans, period end
Operating Expenses/Operating Costs/Total Costs OpExPersonnel expenses +G&As+ Depreciation, excluding restructuring & VES costs. For 9M19, operating expenses excludes the VES cost of €94m, other
restructuring costs of €16m and the LEPETE charge of €36m. For 9M18, operating expenses exclude the VES cost of €40m.
Operating Result / Operating Profit (Loss) - Total income less operating expenses and provisions
Other Impairments - Impairment charge for securities + other provisions and impairment charges on properties
Pre-Provision Income PPI Total income less operating expenses, before loan impairments
Profit /(Loss) for the period (“PAT”) from Continuing
Operations
PAT from Continuing
Operations
Profit for the period from continuing operations excluding restructurings & VES costs. For 9M19, PAT (CONT. OPS) excludes the VES cost of €94m, other
restructuring costs of €16m and the LEPETE charge of €36m. For 9M18, operating expenses exclude the VES cost of €40m
Performing Exposure YieldAnnualized return calculated on the basis on interest income from Performing (and not forborne) loans, over the average accruing Performing (not
forborne) loan balance
Performing Loans / Exposures PEs Gross loans less NPEs
Profit and Loss P&L Income Statement
Provisions (Stock) / Loan Loss Allowance LLAs ECL allowance for impairment on loans and advances to customers
Risk Adjusted NII - Net Interest Income – Cost of Risk
Risk Adjusted NIM Net Interest Margin – Cost of Risk
Risk Weighted Assets RWAs Assets and off-balance-sheet exposures, weighted according to risk factors based on Regulation (EU) No 575/2013
Staff Costs - Refers to personnel expenses
Tangible Equity / Book Value TBV Common equity less goodwill & intangibles (goodwill, software and other intangible assets)
Taxes - Tax benefit / (expenses)
Trading and Other Income / Non Core Income - Net trading income/(loss) and results from investment securities {“trading income/(loss)”} + Net other income / (expense) {“other income/(expense)”}
Total Capital Ratio - Total capital as defined by Regulation No 575/2013, with the application of the regulatory transitional arrangements for IFRS9 impact over RWAs
Total /group deposits - Due to customers
Total Lending Yield - Annualized return calculated on the basis of interest income from Total loan book, over the average accruing Total loans balance
VES & other restructuring Costs - Restructuring Costs including VES and expenditure related to the Transformation Program
Appendix
Definition of financial data, ratios used and alternative performance measures
48 Corporate Presentation – December 2019
The information, statements and opinions set out in this presentation and accompanying discussion (the “Presentation”) have been provided by
National Bank of Greece S.A. (the “Bank”) (together with its consolidated subsidiaries (the “Group”)). They serve informational only purposes and
should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or
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report, a trade confirmation or an offer or solicitation of an offer to buy/sell any financial instruments.
Accuracy of Information and Limitation of Liability
Whilst reasonable care has been taken to ensure that its contents are true and accurate, no representations or warranties, express or implied are
given in, or in respect of the accuracy or completeness of any information included in the Presentation. To the fullest extent permitted by law in no
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measures should be considered in addition to IFRS financial measures, but should not be considered a substitute for results that are presented in
accordance with IFRS.
Due to rounding, numbers presented throughout the Presentation may not add up precisely to the totals provided and percentages may not
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Forward Looking Statements
The Presentation contains forward-looking statements relating to management’s intent, belief or current expectations with respect to, inter alia, the
Bank’s businesses and operations, market conditions, results of operation and financial condition, capital adequacy, risk management practices,
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“projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, “would”, “could” or similar expressions or the negative thereof.
Legal
Important Notice – Disclaimer
49 Corporate Presentation – December 2019
Forward Looking Statements reflect knowledge and information available at the date of the Presentation and are subject to inherent uncertainties
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The Bank’s actual results may differ materially from those discussed in the Forward Looking Statements. Some important factors that could cause
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There can be no assurance that any particular Forward Looking Statement will be realized, and the Bank expressly disclaims any obligation or
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Unless otherwise specified all information in the Presentation is as of the date of the Presentation. Neither the delivery of the Presentation nor any
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The Presentation is subject to Greek law, and any dispute arising in respect of the Presentation is subject to the exclusive jurisdiction of the Courts of
Athens.
Legal
Important Notice – Forward Looking Information
Contact details
Pavlos Mylonas
CEO
+30210 334 1521
pmylonas@nbg.gr
Greg Papagrigoris
Head of IR and Rating Agencies
+30210 334 2310
papagrigoris.gr@nbg.gr
This presentation is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. No part of this presentation may be construed as
constituting investment advice or recommendation to enter into any transaction. No representation or warranty is given with respect to the accuracy or completeness of the information contained in this
presentation, and no claim is made that any future to transact any securities will conform to any terms that may be contained herein. Before entering into any transaction, investors should determine any
economic risks and benefits, as well as any legal, tax, accounting consequences of doing so, as well as their ability to assume such risks, without reliance on the information contained in this presentation.
Christos Christodoulou
Group CFO
+30210 334 3051
cchristodoulou@nbg.gr
Maria Kanellopoulou
Investor Relations Officer
+30210 334 1537
mkanellopoulou@nbg.gr
ir@nbg.gr