National Bank of Greece SA
(OTCPK:NBGRY)
$
18.61
-0.47 (-2.44%)
Market Cap: 16.73 Bil
Enterprise Value: 21.90 Bil
PE Ratio: 12.97
PB Ratio: 1.71
GF Score: 53/100 
Q2 2026 National Bank of Greece SA Earnings Call Transcript
Jul 30, 2026 / 04:00PM GMT
Release Date Price:
$18.82
(+1.90%)
Key Points
Positve
- National Bank of Greece SA (NBGPRA.PFD) delivered a strong first half of 2026 with profit after tax of EUR661 million and an EPS of EUR1.45, leading to an upgrade of the full-year EPS guidance to over EUR1.4.
- The bank's net interest income (NII) momentum strengthened, with a 3% quarter-on-quarter increase in Q2 2026, and the net interest margin (NIM) pivoted from its Q1 trough, leading to an upgraded full-year NII growth expectation to mid-single-digit.
- Fee income growth accelerated, with a 10% year-on-year increase in H1 2026, driven by strong retail investment product sales and corporate origination fees, supporting the bank's diversification strategy.
- The bank's capital position remains robust, with a CET1 ratio of 17.3% and a total capital ratio of 21%, providing significant strategic flexibility for organic growth, shareholder distributions, and value-accretive transactions.
- National Bank of Greece SA (NBGPRA.PFD) successfully completed the largest core banking system replacement in Greece, enhancing its technological infrastructure and positioning it for future innovation and efficiency gains.
- The bank announced strategic partnerships with Allianz and Dromeus Capital, which are expected to enhance fee-generating capabilities and provide a substantial uplift to group fees and return on tangible equity in 2027-2028.
- Asset quality remains strong with an NPE ratio of 2.4% and cost of risk below 40 basis points, supported by benign flows and leading coverage levels.
- The bank's liquidity profile is superior, with an LCR of 230% and a loan-to-deposit ratio of 67%, and deposit funding costs are the lowest in the domestic market.
- Credit expansion accelerated, with performing loans growing by EUR2.1 billion year-to-date, driven by strong corporate and retail disbursements, and the bank is on track to meet its full-year loan growth target.
- The bank's return on tangible equity reached 15.5% in H1 2026, and when adjusted for excess capital, it exceeds 20%, showcasing significant upside potential.
Negative
- The bank faces ongoing spread compression, with an expected 15-20 basis points impact on NII for the year, which could partially offset volume and rate benefits.
- Operating expenses increased by 8% year-on-year, driven by higher personnel costs, union agreements, and investments in technology, which may pressure cost efficiency in the near term.
- The bank's loan growth guidance remains conservative at slightly over EUR3 billion, despite strong H1 performance, due to potential delays in large corporate deals and approvals.
- Deposit growth in Q2 was partially inflated by corporate actions, such as PPC's equity raising, which may not be sustainable and could lead to deposit outflows when those funds are deployed.
- The bank's NII growth is heavily dependent on market rate dynamics, and any adverse changes in Euribor levels could impact the upgraded guidance.
- The benefits from the new core banking system and AI investments are expected to be gradual, with no immediate significant revenue or cost reductions, as the bank acknowledges the realization will take time.
- The bank's strategic transactions, such as the Dromeus partnership, involve initial investments that may carry execution risks and require careful management to achieve the projected fee uplift.
- The bank's cost-to-income ratio, while below 35%, may face upward pressure as the bank continues to invest in technology and talent, potentially impacting profitability if revenue growth slows.
- The bank's capital position, while strong, is absorbing increased risk-weighted assets from credit expansion and payout accruals, which could limit the pace of future capital deployment.
- The bank's reliance on the Greek economy's resilience, which is subject to geopolitical uncertainty and external headwinds, could pose risks to its growth and asset quality outlook.
Operator
Ladies and gentlemen, thank you for standing by. I am Maria, your chorus call operator. Welcome, and thank you for joining the National Bank of Greece conference call to present and discuss the second-quarter 2026 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.
Pavlos Mylonas
National Bank of Greece SA - Chief Executive Officer, Executive Board Member
Good afternoon, everyone, and good morning for those joining from the US. Welcome to our second-quarter 2026 financial results call. I'm joined by Christos Christodoulou, the 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 will turn to Q&A. So let's begin.
On the macro front, we continue to navigate an environment of elevated volatility, yet both the Greek economy and the banking sector have demonstrated remarkable resilience, consistently revealing a capacity to adopt
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