National Bank CEO Pavlos Mylonas described the main pillars of the bank's growth. The aim is for the bank to continue to grow in an environment of decreasing interest rates. Key weapons are the liquidity available and the surplus capital, which will allow for increased lending and credit expansion. In fact, the bank's management intends to engage in syndicated loans beyond the domestic market.
DISCUSSIONS WITH FUNDS
National Bank, Mylonas said, is trying to take advantage of opportunities in the European market, as there is weakness in the banking sector in the Old Continent. In this context, it is in discussions with various funds investing in the wider Eastern European region, and this year alone it has signed €1 billion in bond loans.
Mr. Mylonas emphasized the existence of excess liquidity and the possibility of future acquisition moves. However, he emphasized that any opportunities under consideration must have substance, and he recommended exercising patience. On Hellenic General Insurance, Mylonas said that "we will see if we express interest" if there is such a development, leaving open the possibility of such a deal.
THE OUTLOOK
Based on the bank's running scenarios, we expect the ECB to cut rates by 75 basis points, which will have an impact on NIIs. The reduction in the growth rate will be in the range of 8%–9%, but credit expansion will offset the losses as early as 2025.
DEPOSITS AND SUPPLIES
National Bank maintains 5.5 million deposit accounts with an average deposit of €4k, while of the €55bn in total, just €8bn is in term accounts. A government initiative has brought commissions back into the news, and Mylonas noted that there are schemes with commissions as low as €1 and numerous transactions available. In fact, the CEO of the National Bank noted that they expect to strengthen this program in the near future.
NEW HERCULES
We anticipate completing the formal part of the €1bn Hercules III state guarantees by the end of the year. The bank is including in Hercules III the Frontier III securitisation package, with €620m of non-performing loans, which will need state guarantees of around €360m.
