NBG: “Best Corporate Governance – Greece” award for 2021 by Capital Finance International
National Bank of Greece (“NBG” or “the Bank”) is honored to announce that it has once more been a recipient of the “Best Corporate Governance – Greece” award for 2021, by Capital Finance International (CFI.co).
NBG was awarded by CFI.co following an evaluation of the corporate governance practices it has in place. The organisation praised the Bank’s application of international best practices in corporate governance, conduct and corporate social responsibility initiatives, as well as its historical contribution to economic development.
The Chairman of NBG Board of Directors, Mr. Gikas Hardouvelis stated the following: “This award recognises and confirms the constant application by the National Bank of a robust corporate governance framework, which reflects the principles that the Bank has traditionally valued and serves as the basis for the effective implementation of the Bank’s strategy. The Board of Directors and the Management of the National Bank ensure the existence of appropriate corporate governance structures, focusing on contributing to society and supporting the economy, guided by the values of sustainability and corporate social responsibility. We are continuing to operate with responsibility, transparency and accountability in accordance with the National Bank’s long history, preserving the relations of trust we have built with investors and the Greek society.”
As the General Manager of Group Compliance and Corporate Governance, Mr. Panos Dasmanoglou additionally noted: “The award reflects NBG’s constant target being maintaining strong internal corporate governance arrangements by incorporating in the Bank’s strategy ongoing monitoring of trends, international best practices and legislative and regulatory developments on financial institutions’ internal governance.”
Having already been awarded several times for its corporate governance arrangements, National Bank of Greece continues to set at the top of its Agenda incorporation of highest quality corporate governance standards, sustainable development (ESG) and corporate social responsibility.
NBG 1Q21: PAT from continuing operations at €578m; COP at €95m (+42% yoy)
“Despite renewed restrictions due to Covid-19, NBG started the year with a strong quarter. Momentum reflects the success of our Transformation Program –currently completing its 3rd year– the strength of our franchise, and the commitment of our team.
Solid financial results were observed across all key aspects of our business: profitability, asset quality and capital. On the profitability front, we delivered a very strong quarterly PAT of c€560m, reflecting continued improvement in operating lines as well as a strong trading result. 1Q21 Group core operating profit reached €95m, up by 42% yoy, on higher core income and sharply lower costs, yielding a cost-to-core income of 52%, improved by nearly 9ppts yoy.
Regarding asset quality, our domestic NPE exposure is now at €4.1b, further reduced since YE20 on sustained negative organic formation despite Covid-19. Following the expiry of all of our moratoria by YE20, payment performance remains encouraging, with less than 7% of moratoria beneficiaries in early arrears (>30dpd) and immaterial transitions to the NPE perimeter, well within our 2021 guidance. Our NPE coverage has increased by c200bps qoq in 1Q21, reaching 65% on a run rate of 114bps.
On the capital front, we have enhanced our strong capital position, delivering CET1 and Total CAD ratios of 16.1% and 17.1% respectively, up by c40bps qoq. The latter is expected to improve further by c170bps upon the completion of the Frontier and Ethniki Insurance transactions, expected in the next few months.
As the vaccination program rolls out in Greece, accelerating strongly, while at the same time mobility restrictions are relaxed, the Greek economy is set to recover sharply in the remaining three quarters of the year. Additionally, European RRF’s support is a unique opportunity to change the structure of the Greek economy towards a more dynamic and sustainable growth thesis. With these optimistic prospects, we are devoted to deliver a well-capitalized Bank with strong returns and a high-asset quality balance sheet, providing value-added to our clients while supporting sustainable growth, the Bank of first choice in Greece.
Pavlos Mylonas Chief Executive Officer, NB
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2020: a year of significant challenges and transformatory developments for NBG
FY20 key achievements
o Held-for-sale (HFS) transfer of the Frontier portfolio pushes Group NPE ratio down to 13.6%1 from 29.3% in 3Q20, with CET1 ratio maintained at 15.7%, despite absorbing Frontier provisions, with capital upside of c110bps upon completion from RWA relief
o Agreement to sell a 90% stake in Ethniki Insurance is reflected in FY20 financial results; the transaction is expected to have a further positive impact of c60bps on capital ratios upon completion
o Ensuring the health and safety of our employees, customers and stakeholders has remained our top priority throughout the year; c50% of our staff are working remotely, but efficiently and cyber-securely
o Covid-19 restrictions have sped up the Bank’s digital transformation; the number of transactions reaches pre Covid-19 levels, with e-banking transactions boosted by nearly 50%, replacing branch transactions that have been gradually reduced by c2/3rds vs pre Covid-19 levels
o Solid operating performance despite Covid-19 headwinds, underpinned by resilience in core income and rigorous cost cutting
o Utilization of trading and other income of €1.1b fully covers non-recurring impairments from Covid-19 ECLs and the Frontier securitization, also absorbing the additional impairment following the agreement to sell our insurance subsidiary, avoiding going through a hive down
o Domestic loan disbursements reach €4.7b in FY20 (+40% yoy), aided by State schemes
o In line with our ESG strategy, we successfully placed the first green senior bond in Greece (€500m / 6yr tenor / 2.75% coupon)
Domestic NPEs reduced by nearly 2/3rds to €4.3b in 2020 from €10.8b in 2019
o Total domestic NPE reduction reaches €6.5b in FY20, with the transfer to HFS of Frontier in 4Q20 and a negative organic formation of €0.7b during the year
o NPE ratio of 13.8%1 in Greece (-16.2ppts qoq) combines with NPE coverage of 62.8% (+640bps qoq)
Active support towards clients impacted by the Covid-19 economic crisis
o Total NBG loans approved through the Entrepreneurship Fund II (TEPIX II) business program (completed) and State-guaranteed working capital facilities (in progress) amount to €1.8b, while €2.3b of mostly SME and SB loans benefited from an interest subsidy in 2020
o NBG clients eligible for the State subsidy program “Gefyra” correspond to c€1.4b in loan balances currently, of which nearly 40% under payment moratoria. NBG step-up solutions (i.e. Ethnogefyra) are provided to borrowers that continue to experience economic difficulties due to Covid-19, amounting to €107m in terms of loan balances in March 2021
o Payment moratoria of c€3.8b expired gradually until 31.12.20; first signs on payment status are encouraging, as few experience payment difficulties
Group PAT from continuing operations reaches €591m in FY20, up 26% yoy
o Positive NII momentum is maintained in 2H20 (+12.4% hoh) leaving NII marginally lower yoy, despite significant balance sheet derisking
o Against Covid-19 headwinds, fees grew by 5.3% qoq, remaining flat at €256m for FY20, on the back of strong card business and intermediation fees
o Solid reduction in both domestic personnel (-8.2% yoy) and G&A expenses (-11.8% yoy), driven by FTE reductions, branch network rationalization supported by the new digital model and G&A demand management
o Loan impairments of €1.1b or c400bps over net loans in FY20 incorporate the credit risk charges related to Covid-19 and the Frontier securitization; underlying CoR at 106bps in FY20 in line with management’s guidance
o Excluding one off provisions and trading gains, core operating profit reaches €328m in FY20, up 41.1% yoy; operating profit 37.9% higher yoy at €637m, as trading gains more than offset incremental provisions
CET1 ratio at 15.7%; total capital ratio at 16.7%
o 4Q20 CET1 at 15.7%, post Frontier securitization and Covid-19 provisions
o Total capital ratio of 16.7% exceeds minimum regulatory levels2 by more than 550bps
o Upon completion, the Frontier and Ethniki Insurance transactions will boost capital metrics by c170bps from FY20 levels
“2020 has been a year of significant challenges, but also transformatory developments for NBG. The Covid-19 economic shock surpassed any foreseeable stress test scenario, despite being cushioned by an unprecedented, in terms of magnitude and coordination, policy response launched by the European authorities and the Greek Government. NBG remained true to its historic role and was at the forefront of support extended towards corporate and household clients, via targeted payment moratoria of c€3.8b and interest payment subsidies corresponding to €2.3b of loans mostly towards SME and SB clients. Furthermore, new credit disbursed to corporates and households reached €4.7b, aided by Government State guaranteed support schemes, far exceeding disbursements of recent past.
Our top priority remains to ensure the health and safety of our employees, customers and stakeholders, while c50% of our staff work remotely, but efficiently and cyber-securely. Capitalizing on the new modus operandi prescribed by the restrictive measures, we also accelerated and enhanced the implementation of additional digital functionalities, adapting processes to better serve our customers remotely. As a result, while transactions gradually recovered to pre Covid-19 levels, digital is becoming by far the dominant channel.
We have made solid progress towards executing two key strategic transactions; the sale of our insurance subsidiary and the Frontier securitization. As regards the former, we reached an agreement for the sale of a 90% stake, which is capital accretive. As regards the latter, we have managed to absorb in the FY20 P&L the provisions required for the reclassification of the Frontier portfolio as HFS without the need for a hive down. We aim to complete the transaction in the next few months. Frontier, combined with negative organic NPE formation throughout FY20, drove our 4Q20 Group NPE ratio to 13.6% from 31.3% at YE19, on a cash coverage of 63.3%. Notably, our CET1 and total capital ratios at YE20 stand at 15.7% and 16.7% respectively, while upon completion of both transactions capital will be boosted by an additional c170bps.
Despite Covid-19 headwinds, our FY20 financial results were strong. At the operating level, before trading gains and non-recurring provisions related to Covid-19 and Frontier, Group core operating profit increased by 41% yoy reaching €328m, reflecting resilience in core income and stringent cost cutting yielding an annual cost saving of c€150m over the past two years. At the bottom line, PAT from continued operations reached €591m, up by 26% yoy, as trading and other income of c€1.1b fully absorbed non-recurring loan loss provisions for Covid-19 and Frontier of c€0.8b. The rapidly improving profitability demonstrates our high potential, emanating from our strong balance sheet and the commitment and focus of the NBG team, with all our people increasingly engaged in our transformation. It goes without saying, that the Board, top management and I personally thank everyone at NBG for their commitment, especially under the difficult conditions of the pandemic.
Looking forward into 2021, economic conditions will improve and we will continue to leverage on our successful Transformation Program, currently in its 3rd year, in order to move our NPE ratio near mid-single digits in 2022, permitting us to focus on core business expansion and opportunities. The ongoing migration to digital banking facilitates a more cost-efficient and flexible operating model. We remain committed to position NBG as the Bank of first choice in Greece, providing added value to our clients and supporting a sustainable economic recovery.
Athens, March 26 th, 2021
Pavlos Mylonas
Chief Executive Officer, NBG”
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Εθνική Τράπεζα: Πώληση ακινήτου σε Ηλεκτρονικό Πλειοδοτικό Διαγωνισμό
Η ΕΘΝΙΚΗ ΤΡΑΠΕΖΑ ΤΗΣ ΕΛΛΑΔΟΣ Α.Ε. γνωστοποιεί ότι ενδιαφέρεται να πωλήσει τo παρακάτω περιγραφόμενo ακίνητo ιδιοκτησίας της. Για το σκοπό αυτό πρόκειται να διενεργήσει Ηλεκτρονικό Πλειοδοτικό Διαγωνισμό. Η ελάχιστη τιμή προσφοράς, η ημερομηνία και η ώρα διενέργειας του διαγωνισμού, αναγράφονται δίπλα στο πωλούμενο ακίνητο.
Οι ενδιαφερόμενοι μπορούν:
1. να ζητούν πληροφορίες και να παραλαμβάνουν το σχετικό φυλλάδιο όρων πώλησης του ακινήτου, του οποίου οι υποψήφιοι αγοραστές πρέπει απαραίτητα να λάβουν γνώση, στα τηλέφωνα +302103345327 ή +302103345889, στο email nbgpropertyservices@nbg.gr και από την ιστοσελίδα της Τράπεζας, στην ηλεκτρονική διεύθυνση www.realestateonline.gr
2. να αντλήσουν λοιπές πολεοδομικές πληροφορίες και φωτογραφίες, από την ιστοσελίδα της Τράπεζας, στην ηλεκτρονική διεύθυνση www.realestateonline.gr
3. να το επισκεφθούν κατόπιν συνεννόησης με την αρμόδια υπηρεσία της Διεύθυνσης Εμπορικής Αξιοποίησης στα τηλέφωνα +302103345327 ή +302103345889, στο email nbgpropertyservices@nbg.gr και από την ιστοσελίδα της Τράπεζας, στην ηλεκτρονική διεύθυνση www.realestateonline.gr
National Bank of Greece completes the disposal of a non-performing secured corporate loan portfolio (Project Icon)
Following relevant announcement on June 5th, 2020, National Bank of Greece (“NBG”) informs investors that it has completed the disposal of a non-performing, predominantly secured, corporate loan portfolio with total principal amount of c. €1.6 billion to the Investment Firm Bain Capital Credit (“Bain Capital”).
Morgan Stanley & Co. International plc acted as financial advisor, Karatzas & Partners and Milbank LLP as local and international external legal counsel respectively and Deloitte Greece as transaction and accounting advisor to NBG.
Submission of application for the inclusion of NBG’s Frontier securitization under the Hellenic Asset Protection Scheme (“HERCULES”)
In the context of its transformation program, National Bank of Greece SA has launched the securitization of a portfolio of non-performing loans under the project name “Frontier”, accounting for €6.1 billion in terms of gross book value.
The Bank has submitted yesterday, the 29th of January 2021, an application for the inclusion of Frontier under the “Hercules” guarantee scheme, according to the provisions of Law 4649/2019. The application provides for a guarantee by the Greek State for senior notes with a total value up to Euro 3.31 billion.
Both the transaction process and the approval for the guarantee by the Greek State are currently underway.
National Bank of Greece S.A. becomes Signatory of the global Principles for Responsible Banking
National Bank of Greece S.A. (NBG) announces that it has endorsed the UN Principles for Responsible Banking – a single framework for a sustainable banking industry developed through an innovative partnership between banks worldwide and United Nations Environment’s Finance Initiative – thus becoming an official Signatory together with more than 200 banks from around the world which represent more than a third of the global banking industry.The Principles for Responsible Banking set out the banking industry’s role and responsibility in shaping a sustainable future and in aligning the banking sector with the objectives of the UN Sustainable Development Goals and the 2015 Paris Climate Agreement. They also, importantly, enable a bank to embed sustainability across all its business areas, and to identify where it has the potential to make the most impact in its contributions to a sustainable world. Additionally, they also position a bank to leverage new business opportunities with the emergence of the sustainable development economy.Recognizing the significance of responsible practices for ensuring the sustainability of its long-term operation, as well as the creation of value for its shareholders, customers, employees and the community at large, NBG endorsed the UNEP FI Principles for Responsible Banking, aiming at further enhancing its commitment to its long-term strategic planning for contributing to a sustainable future for all.Mr. Pavlos Mylonas, NBG’s CEO stated: “With pride, NBG endorses the UNEP FI Principles for Responsible Βanking. NBG, throughout its long history dating back to 1841, has successfully addressed the challenges of the future. And today, Corporate Social Responsibility has become a pivotal part of our strategy and we are constantly taking new initiatives so as to invest in a sustainable future and create long-term value”.
National Bank of Greece S.A. was established in 1841 and was the first bank to be set up in the modern Greek state, going on to play a key role in the economy of Greece throughout its long history. Today NBG heads one of the largest financial groups in Greece, playing a key role in the efforts to support the Greek economy and the economic and social transformation of the country. NBG offers a wide range of financial products and services that meet the ever evolving needs of private and business customers.
National Bank of Greece agrees to sell a Romanian-risk non-performing loan portfolio (Project Danube) to Bain Capital Credit
National Bank of Greece (“NBG”) announces that it has entered into a definite agreement with Bain Capital Credit (“Bain Capital”) for the disposal of a Romanian-risk corporate NPE portfolio (“Project Danube”) with a total Gross Book Value of c. €174 million (€102 million of allocated collateral value). The transaction is being implemented in the context of NBG’s NPE deleveraging strategy and in accordance with the Operational Targets submitted to the Single Supervisory Mechanism (“SSM”).
The transaction has a neutral capital impact to the Bank.
Deloitte Business Solutions SA acted as financial advisor to NBG, Milbank LLP and CMS Cameron McKenna Nabarro Olswang LLP SCP as international and local external legal counsels.The closing of the transaction is subject to standard conditions precedent, including the approval of the transaction by the Competition Council of Romania, as well as the consent of the Hellenic Financial Stability Fund.
NBG 3Q 2020 Financial Results
NBG actively supports its clients throughout the Covid19 crisis; digital transformation continues unabated
– Approved payment moratoria extended to corporate and retail customers currently amount to c€3.6b in terms of loan balances, of which c€1.2b Mortgages, c€0.2b Consumer & SBs and c€2.1b Corporate
– Active participation in all State Schemes, including via ΤΕΠΙX ΙΙ involving #5.1k of applications and c€0.4b of loans approved, Stateguaranteed working capital facilities of more than €800m of loans approved, as well as Interest Payment subsidies in #10.6k accounts of mostly SME and SB loans, corresponding to loan balances of €2.3b
– Mortgage State subsidy program “Gefyra” will provide State subsidization to primary residence mortgage clients hit by Covid19; NBG clients eligible to receive the subsidy amount to c€1.2b, of which c40% under payment moratoria
– Following the expiry of moratoria, NBG’s step-up solutions will be provided to borrowers that may continue to experience short-term difficulties due to Covid19
– Number of branch transactions reduced by >60% in October relative to February levels, while digital & alternative channels transactions were boosted by 33%; e-banking transactions were up by an impressive 71% over the same period
– The work-from-home model continues to operate effectively, currently corresponding to c50% of staff
3Q20 PAT at €137m from €58m in 2Q20, reflecting strong core income recovery, sustained momentum in OpEx reduction and moderate provisions, stable qoq; 9M20 PAT at €602m, 33% higher yoy
– NII recovers sharply by 12% or €32m qoq to €304m in 3Q20, driven by the expansion of the performing loan book, as well as by the funding benefits from the increased TLTRO exposure and the continuing repricing of time deposits
– Following the Covid19-related disruption in transactions in 2Q20, fees rebound by 13% qoq in 3Q20 on the back of both retail and corporate fee recovery; 9M20 fees up by 2% yoy to €188m, despite Covid19 headwinds, driven by the retail segment
– Trading and other income of €43m in 3Q20; in 9M20 trading & other income settles at €830m benefitting from large realized gains related to the GGB swap transaction and the sale of GGBs in the HTCS securities portfolio totaling €779m in 1Q20
– Containment of domestic personnel and G&A expenses continues in 3Q20 (-1% qoq), yielding significant reductions of -8.5% and -9.7% yoy respectively in 9M20; total operating expenses 4% lower yoy in Greece, absorbing the substantial increase in depreciation charges arising from IFRS16 first time adoption (FTA), due to Pangaea (currently “Prodea”) deconsolidation in mid-2019
– Loan impairments of €640m in 9M20 or 244bps over net loans include the total anticipated Covid19 impact mostly booked in 1Q20, amounting to 147bps on a non-annualized basis; underlying CoR at 97bps3 in 9M20
3Q20 Bank NPEs edge lower crossing the €10b mark
– NPEs are reduced by €0.2b qoq in 3Q20 organically, reaching €9.96b at the Bank level, aided by a small pick-up in liquidations and restructurings involving debt forgiveness
– New defaults remain low, as the drop in economic activity is cushioned by the targeted application of payment moratoria measures and Government support schemes
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NBG: Announcement Date & Time of 3rd Quarter 2020 Results
National Bank of Greece will announce 3rd Quarter 2020 results on Monday 30 November 2020, at 17:30 Greek time (GMT +2:00). A conference call for the presentation and discussion of the results is scheduled to follow at 18:00 on the same day.