Q2 2024 National Bank of Greece SA Earnings Call Transcript
Key Points
- National Bank of Greece SA (NBGPRA.PFD) reported a strong first-half group core profit after tax of EUR646 million, up 27% year on year.
- The bank's CET1 ratio increased by 100 basis points year to date, reaching 18.3%, which is significantly above the internal target of 14%.
- Loan disbursements reached a multiyear record quarterly high of EUR2.8 billion in the second quarter, indicating strong credit expansion.
- Net interest income (NII) showed resilience, with a 15% year-on-year increase, supported by strong credit growth and a favorable deposit mix.
- Moody's upgraded the senior rating of National Bank of Greece SA by two notches, now standing one notch above investment grade, reflecting the bank's strong financial performance.
- The normalization of net interest income (NII) continued at a pace similar to the first quarter, with a 3% quarter-on-quarter decline.
- The bank faces challenges from hedging costs and the full cost of MREL issuances, which impacted NII negatively.
- Despite strong loan growth, the corporate loan book's expansion is described as 'choppy,' indicating potential volatility in future loan disbursements.
- The bank's cost of risk, although declining, remains a concern at 55 basis points, with little new gross formation.
- There is uncertainty regarding the approval of potential buybacks by the regulator, which could impact capital allocation strategies.
Ladies and gentlemen, thank you for standing by. I am Mia, your Chorus Call operator. Welcome, and thank you for joining the National Bank of Greece conference call to present and discuss the second-quarter 2024 financial results.
At this time, I would like to turn the conference over to Mr. Pavlos Mylonas, CEO of National Bank of Greece. Mr. Mylonas, you may now proceed.
Good morning, everyone. Welcome to our second-quarter 2024 financial results call. I'm joined by Christos Christodoulou, Group CFO; and Greg Papagrigoris, Group Head of IR. After my introductory remarks, Christos will go into more detail on our financial performance, and then we'll turn to Q&A.
Let me start by providing a brief overview of Greece's economic developments and outlook. During the first half of 2024, the Greek economy has remained on a solid footing, with growth spearheaded by a strong tourist season and supported by
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
