NBG reports H1 2023 net profits of 530 mln€, slightly down from 546 mln€ in same period of 2022

National Bank (NBG on Tuesday reported net earnings of 530 million euros in first half 2023 results, slightly down from 546 million euros in the corresponding period of 2022.

The lower profitability was attributed to reduced trading revenues, despite an increase in net interest income.

A large stake in NBG, totaling 40.4 percent, is still held by the Hellenic Financial Stability Fund (HFSF), a special purpose vehicle established to stabilize the domestic banking sector during the bailout era. The bank, one of four systemic lenders in the country, is calculated as the second-largest bank by market value

According to the released results, NBG’s trading income dropped by 81 percent, yoy, in the April-June period to reach 56 million euros.

Conversely, net interest income increased to 1.05 billion euros, up significantly from 600 million euros a year ago, on the back o successive interest rate hikes by the ECB, an economic rebound in Greece and expanded loan activity.

NBG reported its NPE exposure ratio at 5.4 percent of its total loan portfolio, down from 6.3 percent at the end of first half of 2022.

In press release announcing the results, NBC CEO Pavlos Mylonas noted that “…Building on the country’s sustained growth momentum and the Bank’s strong fundamentals, we have delivered a compelling financial performance in the first half of 2023, underpinned by the unique strength of our balance sheet and our successful transformation. Our 1H23 core PAT exceeded €0.5b, translating into a core RoTE of >16 percent, driven by the impressive growth in our core income, combined with contained operating costs — with the C:CI at 32 percent — and gradually normalizing credit risk charges. Our strong core profitability is generating capital on a sustainable basis, with the CET1 and total capital ratios rising by c80bps qoq for a second quarter in a row, and now standing at 17.3 percent and 18.4 percent, respectively. At the same time, our liquidity position remains a strong competitive advantage, comprising of a large and stable core deposit base, while our net cash position has increased further to near €7b,” he said, adding:

“With leading economic indicators pointing to stronger growth for the remainder of 2023, we will continue to implement our successful multi-year transformation effort with the goal of improving further our product and service offering to meet the rapidly changing needs of our clients in a more efficient and customer friendly manner. We remain committed — as the Bank of First Choice– to play a leading role in supporting our clients as they lead the Greek economy forward.”