National Bank on Tuesday said its 2022 after-tax profits totaled 1.120 billion euros, eflecting a 45% jump in the bank’s core profitability to 664 million euros.
The bank attributed this performance to a strong recovery of net interest revenue, an impressive rise of net revenue from commissions and a de-escalation of credit risk cost to 70 basis points throughout 2022.
National Bnk said its international activities recorded after tax profits of 59 million euros in 2022, after a loss of 13 million in 2021.
Presenting the bank’s results to analysts, National Bank’s CEO Pavlos Mylonas said the bank was also in talks with the Financial Stability Fund over a share buyback plan and noted that a response on the dividend plan was expected by the end of July.
He also said that the bank was examining a Tier 2 bond issue in the second half of 2023 and that National Bank also other options in the framework of its MREL obligations.
National Bank said core profitability totaled 700 million euros in 2022, up from a guidance of 500 million, while after tax profits were up 29% on an annual basis. The bank’s NPE ratio dropped by around 80 bps on a quarterly basis and by around 180 bps on a year-on-year basis to 5.1% in Greece (5.2% at the Group level).
Domestic NPE coverage kept rising from 70 bps to a high oif 88%.
Pavlos Mylonas, CEO of National Bank Group, commenting on the results said: “NBG demonstrated notable strength, delivering superior performance across all lines of business, leveraging on the improved operating model that has been created by our successful 4-year transformation efforts. Our liquidity position remains robust and derives from the Bank’s strong and stable core deposit base. Looking ahead, the solid fundamentals of the Greek economy should keep growth it in a positive territory in 2023, outperforming the rest of Europe. In this positive environment and supported by a solid balance sheet and positive profitability momentum, we aspire to enhance our core RoTE further, to over 12% by YE25. Sustained positive organic capital generation creates options with regards to shareholder distribution. These achievements are consistent with our goal to continue to provide our clients expeditiously with advantageous products and services, maintaining their trust and confidence in NBG, the Bank of First Choice.”
SOURCE; ANA-MPA
