The National Bank of Greece reported strong performance at all levels in the nine-month period, during which the return on equity (core RoTE) further strengthened to 17.8% and its organic after-tax profits amounted to €855 million.

Specifically, key developments for the National Bank of Greece include:

9M23 Group core PAT nears €0.9b, driven by positive NII momentum

o Sustained NII, up by 73% yoy and 6% qoq, reflects ECB’s continued base rate repricing, benefitting loan NII, offsetting higher deposit and wholesale funding costs; NIM continued to rise, reaching 322bps in 3Q23

o Fees increased by +4% qoq on the back of solid growth in the retail and corporate banking businesses, led by cards, trade finance, deposit bundles and investment products; on a like for like basis, excluding the merchant acquiring deconsolidation, 9M23 fees were up by +15% yoy

o Operating expense discipline continues, with 9M23 personnel and G&A expenses up by 1% yoy, fending off inflationary pressures; combined with higher depreciation charges reflecting our ambitious and unique by domestic standards IT strategy, total costs were 3% higher yoy; 9M23 C:CI stood at 31.4%

o 9M23 CoR settled at 66bps1, well below our FY23 guidance of c80bps, reflecting the benign macro environment

o Core RoTE rose further, reaching 20.8% in 3Q23 (17.8% in 9M23), before adjusting for excess capital Domestic PE balances €0.6b higher qoq to €28.0b; disbursements2 pick up to nearly €2b in 3Q23

o Disbursements2 were up by +40% qoq to €1.9b in 3Q23, driven by SMEs, shipping and project finance

o The pick up was mainly in corporate disbursements2, with retail strengthening; 3Q23 corporate momentum continues into 4Q23

o Domestic deposits continued to rise, up by +€1.1b ytd, driven by retail customers, despite the corporate drawdowns at the beginning of the year

o Netting off TLTRO (€1.85b) and factoring in our net lender interbank position, excess liquidity increased further to €7.4b in 3Q23, underlying NBG’s liquidity advantage Domestic NPE ratio at 3.6%, with coverage reaching c94%

o Organic NPE flows amounted to just €150m on a ytd basis, well inside our FY23 expectation

o Domestic NPE stock at €1.1b in 3Q23, €0.6b3 lower qoq, reflecting the NPE clean-up transaction

o NPE ratio of 3.6% in Greece (3.7% at the Group level), down by c170bps qoq and c230bps yoy

o Domestic NPE coverage kept rising to a high of c94% (Group Stage 3 coverage at 55%), while Stage 2 ratio dropped to 10.7%, with coverage at a sector-high of 7.1% CET14 at 17.9% with total capital ratio4 at 20.3%

o CET1 ratio4 up by c60bps qoq to 17.9% in 3Q23, driven by strong organic profitability; total capital ratio4 at 20.3% (+c200bps qoq)

o Following the €0.5b Tier II issuance in September 2023, MREL ratio increased to 24.5%, exceeding the January 2024 interim target of 22.7% by c180bps

o NBGs’ long-term credit rating has been upgraded by two-notches to ‘Ba1’ by Moody’s and to ‘BB’ by Fitch in September 2023, reflecting benign economic conditions, as well as the bank’s balance sheet de-risking and sharp profitability improvement Our Transformation Program supports the delivery of our targets and improvements to our commercial and operating model

o Our Transformation Program is a key competitive advantage, supporting the rapid change of NBG into a more agile and efficient organization, enhancing revenue generation through service model improvements, cross-selling, astute partnerships and new business offerings, and upgrading technology infrastructure, notably the digital offering, but also the ongoing replacement of our Core Banking System

o Top digital market offering in Greece, manifested by our leading market shares in monthly active users (mobile: 32%, internet: 25%) and digital sales (cards: 55%, consumer: 34%, insurance: 52%).  Our digital sales increased to 1.1m in 3Q23 from 0.7m in 3Q22

o We are incorporating ESG in our business strategy, risk management, governance, data and systems, leading the market in terms of RES financing and materially supporting the green transition of businesses and households. We are also market leaders in disclosing financed emission measurements as per the Partnership for Carbon Accounting Financials (PCAF), while we have also committed to 2030 financed emissions targets for 6 Net Zero Banking Alliance (NZBA) sectors/portfolios Athens, November 7, 2023