National Bank of Greece (NBG) Posts €640mln Profits in 1st Half of 2024

The National Bank of Greece (NBG) posted notable profits of 640 million euros in the first half of the year, recording a 26% increase compared to the same period in 2023.

National Bank of Greece CEO, Pavlos Mylonas, estimated shareholders would receive a dividend of 40% on the 2024 profits, compared to 30% in 2023.

The bank’s forecast indicated net interest income continued to demonstrate resilience against the expected normalization trend, decreasing by -3% every quarter but up by +13%, annually.

NET income amounted to 1.2 billion euros in the first half of 2024, absorbing the full impact of the cost of hedging customer deposits, higher minimum requirement for own funds and eligible liabilities (MREL) issuances, and lower Euribor rates.

The increase in fee income (revenue earned from the services provided to customers, excluding interest earned from loans) by +15% annually and 6% every quarter reflects the increased volume of transactions, with double-digit growth rates in all individual fee categories, particularly in fees from investment products and loan disbursements, the latter benefiting from the recovery of new loan production. The number of transactions increased by +10% annually due to a +22% annual increase in digital channels.

There was a continuous containment of operating expenses in the first half of 2024, with the cost of the second quarter of 2024 remaining unchanged every quarter.

Comparatively, operating expenses increased by just +3.6% annually in the first half of 2024, with the cost-to-core income ratio maintained at 30%.

The cost of credit risk was 55 basis points in the first half of 2024, reflecting negligible organic non-performing exposure (NPE) flows.