1Q19 Financial Results May 14 th , 2019
Important Notice – Forward Looking Information No representation or warranty, express or implied, is or will be made in relation to, and no responsibility is or will be accepted by National Bank of Greece (the Group) as to the accuracy or completeness of the information contained in this presentation and nothing in this presentation shall be deemed to constitute such a representation or warranty. Although the statements of fact and certain industry, market and competitive data in this presentation have been obtained from and are based upon sources that are believed to be reliable, their accuracy is not guaranteed and any such information may be incomplete or condensed. All opinions and estimates included in this presentation are subject to change without notice. The Group is under no obligation to update or keep current the information contained herein. In addition, certain of these data come from the Group’s own internal research and estimates based on knowledge and experienc e of management in the market in which it operates. Such research and estimates and their underlying methodology have not been verified by any independent source for accuracy or completeness. Accordingly, you should not place undue reliance on them. Certain statements in this presentation constitute forward-looking statements. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. As a result, you are cautioned not to place any reliance on such forward-looking statements. Nothing in this presentation should be construed as a profit forecast and no representation is made that any of these statement or forecasts will come to pass. Persons receiving this presentation should not place undue reliance on forward-looking statements and are advised to make their own independent analysis and determination with respect to the forecast periods, which reflect the Grou p’s view only as of the date hereof. National Bank of Greece 1Q19 results 1 Legal
Table of Contents 1 Highlights 2 Profitability 3 Asset Quality 4 Liquidity 5 Capital 6 Macro 7 Appendix
Highlights 1
1Q19 PAT from continued operations at € 131m against PAT of € 8m in 4Q18 P&L Highlights Group P&L € m 1Q19 1Q18 YoY 4Q18 QoQ 1Q19 group PAT reaches € 131m, up from € 8m in 4Q.18 , as a NII 290 290 +0% 275 +5% result of the following key P&L movements: Net Fees & Commissions 59 60 -2% 66 -11% NII up by 5% qoq, as part of the impact from the swap • arrangement with the Greek State comes through; going Core Income 349 350 -0% 341 +2% forward, the incorporation of the full impact of € 110m per Trading & other income 101 11 >100% (47) n/m annum as well as the continuous expansion of the loan book, Income 450 361 +25% 294 +45% will be supportive to the NII Operating Expenses (205) (215) -5% (218) -6% Fees are down qoq due to seasonal factors as high corporate • Core PPI 144 135 +6% 123 +17% disbursements in 4Q and high card acquiring December created PPI 245 147 +67% 76 >100% a base effect Provisions (103) (119) -14% (60) +70% Trading & other income recovers from being loss making, • aided by a capital gain of € 59m, related to the exchange of the Operating Profit 142 27 >100% 16 >100% IRS. Henceforth the trading will not experience the volatility Core Operating Profit 41 16 >100% 63 -33% arising from BVCA movements related to the IRS Other impairments (8) 1 m/m (1) n/m OpEx down by 6% qoq (-4% yoy) reflects part of the impact • PBT 135 28 >100% 15 >100% from the 780 employee VES completed in March 31 st , as well as Taxes (4) (3) +21% (7) -51% that from branch closures and tighter G&A cost control; a new PAT (cont. ops) 131 25 >100% 8 >100% larger scale targeted VES has just been launched and its full cost PAT (discont. ops) 21 19 +7% (84) n/m of € 94m was fully expensed in 1Q VES & other restructuring (101) - - (38) >100% costs 1 CoR at 136bps vs 113bps in FY.18, up slightly due to annual • Minorities (10) (10) -5% (7) +43% updates to models and ageing in the retail portfolio PAT 41 34 +20% (120) n/m 1. Restructuring charges, mainly comprising of VES costs of € 94m in 1Q19 and € 26m in 4Q18 National Bank of Greece 1Q19 results 4 Highlights
1Q19 NPE reduction at € 1.1b, Corporate PEs keep expanding (+ € 0.5b qoq net of repayments), CET1 ratio at 15.7% Asset Quality, Liquidity & Capital Highlights Key Ratios - Group Domestic NPE stock reduction picks up in 1Q (- € 1.1b qoq) 1Q19 4Q18 3Q18 1Q18 NPE reduction gathers pace in 1Q , driven by the sale of SB and SME loans (- € 0.7b) as • Liquidity well as negative NPE formation; for the remainder of the year, an additional reduction of c € 3.2b will be achieved from sales, liquidations and restructurings including debt Loans-to-Deposits ratio 71% 70% 72% 76% forgiveness LCR 151% 144% 124% 66% NPE reduction achieved since the SSM targets set at € 7.2b • High NPE cash coverage levels of 59% facilitates the envisaged shift towards closure • NFSR 113% 108% 103% n/a actions (sales & liquidations) on a contained loss budget Profitability Domestic deposits up 7% yoy ( € 41b) Domestic deposit recovery continues in 1Q, +7.2% yoy, with c60% of the pre capital • NIM (bps) 263 260 268 293 control outflows recovered Cost of Risk (bps) 136 81 108 157 Interbank exposure cut back to € 1.4b vs € 3.6b at YE.19 as funding profile is optimized • while LCR & NSFR ratios are kept at levels well above 100%, exceeding minimum Risk Adjusted NIM 1 127 179 160 136 regulatory thresholds Asset quality NBG’s strong liquidity position and lowest funding cost are key in tapping healthy • domestic corporate credit demand NPE ratio 38.9% 40.9% 42.2% 42.9% 1Q NBG credit disbursements towards Greek corporates reach € 0.6b allowing the • NPE coverage ratio 58.6% 59.1% 59.9% 60.4% Bank’s performing loan book to expand, offsetting continued retail deleveraging CET1 ratio at 15.7% Capital 1Q.19 CET1 is negatively affected (-34bps qoq) by IFRS9 transitional adjustments and • CET1 ratio 15.7% 16.1% 16.4% 16.5% IFRS16 FTA (-5bps) RWAs ( € bn) 35.1 35.0 35.0 36.2 1.Risk Adjusted NIM= NIM-Cost of Risk National Bank of Greece 1Q19 results Highlights 5
Profitability 2
1Q19 group operating profit reaches € 142m, reflecting strong operating trends and a positive trading result Group operating margin decomposition 1 1Q19 (bps) Group operating result bridge 1Q19 ( € m) o/w: € 59m due to trading +148 Group operating 16 142 income one off profit ( € m) 142 -43 326 Group PPI margin (bps) 102 +13 Group -81 +15 CoR (bps) -136 -7 16 Group operating margin (bps) 21 190 4Q18 Δ NII Δ Opex Δ fees Δ non core Δ provisions 1Q19 4Q18 1Q19 income 1. PPI margin & CoR are calculated over net loans National Bank of Greece 1Q19 results 7
NII up by 6% qoq as the impact of the swap of the Greek State IRS starts to feed through Domestic NII breakdown ( € m) Domestic NIM & CoR (bps) 1Q18 2Q18 3Q18 4Q18 1Q19 311 301 299 292 Loans 298 286 283 290 285 286 NIM ex cash 292 262 NIM 1 Deposits -39 -37 -38 -40 -40 273 265 257 Securities 167 26 23 26 28 40 CoR 139 Eurosystem & 107 109 -14 -13 -14 -17 -14 83 wholesale Subs & other 3 1 0 -2 3 Total +6.0% qoq 274 260 258 259 274 1Q18 2Q18 3Q18 4Q18 1Q19 Domestic risk adj NII ( € m) Domestic risk adj NIM (bps) Domestic Domestic 174 123 200 174 risk adj NI Ι risk adj NIM ( € m) (bps) 274 259 257 NII ( € m) 262 NIM (bps) Provisions CoR (bps) ( € m) -59 -83 -100 -139 4Q18 1Q19 4Q18 1Q19 1. NIM calculated on a daily average basis National Bank of Greece 1Q19 results 8 Profitability
Domestic deposits keep recovering – blended deposit yields remains low at 40bps Greek deposit yields (bps) Greek deposits evolution ( € b) 83 82 81 79 79 Core deposits/total 70% Term +7.2% yoy 64 63 41.7 + € 2.8 b yoy 41.2 Sight 40.0 58 39.3 38.4 55 52 13.0 12.2 12.8 12.5 12.2 Time 40 40 40 40 38 Total 9.5 9.7 8.4 8.2 7.7 Sight & other Market share at 36% 19.3 19.3 18.9 18.4 18.6 Savings 3 3 3 3 3 Savings 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 National Bank of Greece 1Q19 results 9 Profitability
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