Corporate presentation - April 2021 - NBG
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Corporate presentation April 2021
Table of Contents 1 Macro 2 Overview 3 Key Developments 4 Financial highlights 5 Outlook 6 Financial Results 7 ESG Framework 8 Appendix
1 Macro
Activity is set to accelerate rapidly from 2Q21
Turnover of enterprises, retail
trade & exports of goods
Pandemic impact cushioned by unprecedented fiscal support, mitigating the 2020 30 y-o-y 30
20 20
recession to a better-than-expected -8% y-o-y 10 10
GDP drop in 2020 0 0
contained on fiscal Fiscal policy remains supportive; additional support measures >6.5% of 2021 GDP -10 -10
-20 -20
support -30 -30
Labor market resilience in 2020: unemployment rate declining to 16.5% and -40 -40
Nov-19
Nov-20
Sep-19
Sep-20
Jul-19
Jul-20
May-19
May-20
Jan-19
Mar-19
Jan-20
Mar-20
Jan-21
compensation of employees only -0.8% y-o-y
Goods exports (excl. oil & ships, nominal)
4Q20 GDP up +2.7% q-o-q, on the back of resilient domestic demand, increasing
Manufacturing production
goods exports and strengthened manufacturing activity Total turnover of enterprises with double-
entry bookkeeping
NBG: GDP growth estimates
based on high frequency data
12 12
Activity expected to accelerate rapidly from 2Q21 onwards to an average of 8
%
8
4 4
+c10% y-o-y, on the back of: 0 0
-4 -4
Catalysts for a -8 -8
(i) Continued fiscal support, including rollover effects from 2020
recovery in 2021 -12 -12
forecast
-16 -16
(ii) Latent demand from accumulated household and corporate savings, -20
-24
-20
-24
May 20
July 20
2017Q1
2017Q3
2018Q1
2018Q3
2019Q1
2019Q3
2020Q1
Nov 20
Jan 21
Sep 20
supported by fiscal support and credit conditions
(iii) A recovery in tourism reflecting mostly a base effect even though accelerated GDP, q-o-q or m-o-m change
GDP y-o-y growth (actual data)
ΝΒG - quarterly GDP indicator
vaccination roll out creates an upside risk to estimates NBG - monthly GDP indicator
(iv) Growth-enhancing funding from the EU Recovery Fund
National Bank of Greece Corporate Presentation Apr21 Macro 3The recessionary impact of the pandemic has been cushioned by sizeable fiscal support, resilient goods
exports and increasing adaptability of businesses and households
Composition of GDP growth by expenditure component Annual change in turnover of Greek enterprises by sector (y-o-y)
8 -100 -80 -60 -40 -20 0
4
0 Accommodation
Travel agency,tour oper.&reserv.serv.
-4
Air transport
-8
Manuf. of coke & ref.petrol.products
-12
Sales & repair of vehicles
-16 contributions
in pps Manufacture of beverages
-20 Wareh. & supp.activ.for transport.
3Q18
4Q18
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
4Q20
Total manufacture
Wholesale & retail trade
Net Exports Investment *including
other TOTAL -29.6
-8.1
Public consumption Private consumption statistical
discrepancies April-May 2020 November-December 2020
Inventories* GDP growth
Greek labor market Residential & commercial real estate prices
14 y-o-y %
30 8 y-o-y 8
10 25 4 4
6 20
0 0
2 15
-4 -4
-2 10
-8 +4.2% y-o-y -8
-6 5
in FY20
-12 -12
-10 0
-16 -16
Nov-10
Nov-12
Nov-14
Nov-16
Nov-18
Nov-20
Mar-12
Mar-14
Mar-16
Mar-18
Mar-20
Jul-11
Jul-13
Jul-15
Jul-17
Jul-19
1H13
2H13
1H14
2H14
1H15
2H15
1H16
2H16
1H17
2H17
1H18
2H18
1H19
2H19
1H20
2H20
Employment growth (left axis) House prices (total, y-o-y)
Active population (left axis) Office prices (total, y-o-y)
Unemployment rate (right axis) Retail prices (total, y-o-y)
Sources: EL.STAT. & Bank of Greece
National Bank of Greece Corporate Presentation Apr21 Macro 4Fiscal policy helped mitigate the recession by 6ppts in FY20 and will remain highly supportive in 2021,
compounded by improving liquidity conditions and tailwinds from the previous year’s credit impulse
Breakdown of fiscal support in 2021 State budget primary balance & GDP growth
2 8
Liquidity measures % GDP y-o-y
€0.5 b 4
Revenue 0
€2.7 b 0
Repayable -2
advance -4
€3.0 b €11.0 b
-4
(6.4% of GDP) -8
-6 -12
-8 -16
Expenditure 1Q20 2Q20 3Q20 4Q20 1Q21
€4.9 b Primary balance (% GDP, left axis) GDP growth (real, y-o-y, right axis)
Credit impulse & lending to non-financial corporations “Repayable advance” scheme (Number of recipients & avg support)
3 net flows, 6m y-o-y 12 500 € thousands 20
thousands
mov.avg. (% GDP) €5.5 b €3.0 b
2 8 400 in FY20 in FY21
15
1 4 300
10
0 0 200
€5.5 b
in FY20 5
-1 -4 100
Mar-18
Mar-19
Mar-20
Jun-18
Jun-19
Jun-20
Sep-18
Dec-18
Sep-19
Dec-19
Sep-20
Dec-20
0 0
I (2Q20) II (3Q20) III (4Q20) IV (4Q20) V (1Q21)
Credit impulse: credit to non-fin. corporations (net flows, 6m mov.avg., %
GDP, left axis) Number of enterprises & self-emloyed funded (in thousands, left axis)
Credit to non-financial corporations (y-o-y, right axis)
Average amount per recipient (in € thousands, right axis)
Sources: Ministry of Finance, EL.STAT., Bank of Greece & NBG Economic Analysis estimates
National Bank of Greece Corporate Presentation Apr21 Macro 5Success of the vaccination program is key to leveraging the significant supportive factors, with latent
household and corporate spending and tourism envisaged to provide strong impetus to economic growth
Covid-19 vaccinations in Greece PMI & main sectoral confidence indicators
50 vaccinations per day, cumulative doses administered, 1.5 50 EC sectoral confidence index
80
in thousands in millions indicators, index level
40 1.2 70
25
Total Covid-19 vaccine doses 60
30 administered per 100 people: 0.9
- GR: 11.1 0 50
20 - EU: 9.8 0.6
- US: 28.0 40
-25 PMI: Values below 50 indicate a decrease,
10 0.3 30
values above 50 indicate an increase
0 0.0 -50 20
Aug-18
Aug-19
Aug-20
Jun-18
Jun-19
Jun-20
Apr-18
Dec-18
Apr-19
Dec-19
Apr-20
Dec-20
Feb-18
Oct-18
Feb-19
Oct-19
Feb-20
Oct-20
Feb-21
29/12/20
03/01/21
08/01/21
13/01/21
18/01/21
23/01/21
28/01/21
02/02/21
07/02/21
12/02/21
17/02/21
22/02/21
27/02/21
04/03/21
09/03/21
Industrial (left axis) Services (left axis)
Vaccinations per day (left axis) Total vaccinations (cumulative, right axis) Retail (left axis) PMI (right axis)
Corporate & household deposits as % of GDP Tourism receipts
100 40 18 €b
% GDP
16
80 2001-2020 avg:
66% of GDP 30 14
12
60
10
opt.
2001-2020 avg: 20
8
40 14.6% of GDP
6
10
baseline
4 +80%
20 y-o-y
2
0 0 0
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021f
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Household deposits (left axis) Corporate deposits (right axis) Tourism receipts (excl. cruises)
Sources: Greek Government Covid-19 data, European Commission, IHS Markit, Bank of Greece & NBG Economic Analysis estimates
National Bank of Greece Corporate Presentation Apr21 Macro 62 Overview
NBG Group at a glance
Trusted brand
FY20 COP at €328m¹ Balance sheet health
with more than
(+41%yoy) and continues to improve
180 years of history
PAT at €591m (+26% yoy)
Solid CET1 capital position of
15.7% absorbs Covid19 & Frontier NIM2 228bps Gross NPEs (€) 4.4b
related provisions
Lowest exposure in domestic
C:CI 55% Net NPEs (€) 1.7b
NPEs of €4.3b
Leading market share in domestic
active customers (#>5.5m) cPPI margin 244bps NPE ratio⁵ 13.6%
c35% domestic market share in
price inelastic savings accounts CoR3 107bps NPE Coverage 63.3%
carrying a near zero yield
Total assets (€) 77.5b
COP4 margin 142bps CET1/ 15.7%/
Net Loans (€) 26.8b
Total Capital 16.7%
Deposits (€) 48.5b
All metrics in this table refer to 4Q20, Group data Group data
1. COP calculations normalize for Covid19 and Frontier related provisions incurred in FY20. 2. Calculated on monthly average IEAs / 3. Excluding Covid19 and Frontier related loan impairments / 4. Excluding
trading & other income and Covid19 and Frontier related provisions / 5. Pro forma for the recognition of Frontier senior notes of c€3b
National Bank of Greece Corporate Presentation Apr21 Overview 8NBG Group vs peers at a glance
NPEs (€b) and cash coverage (%) | 4Q20 Gross loans decomposition (€b) | 4Q20
NPE cash 62% 44%
63% Domestic Performing
coverage
Intl Performing
NPEs 49.3
Net NPEs LLAs 21.7
Sec notes 40.9
3.4 21.7
9.9 29.5 5.7
4.4 7.6 3.4
1.3
5.7
4.4
11.8 23.8 24.1 24.2
2.8 3.2
1.7 2.5
NBG Peer 1 Rest of NBG Peer 1 Rest of
systemic systemic
banks (avg) banks (avg)
Liquidity | 4Q20 NPE exposure and Capital | 4Q20
LCR 232% 124% Significantly >100%
CET1 (%) 15.7% 13.9% 15.5%
NSFR 121% Not disclosed Not disclosed
172%
85%
79%
55%
L:D
44%
Net NPEs 29%
/CET1 (%)
NBG Peer 1 Rest of systemic banks (avg) NBG Peer 1 Rest of systemic banks (avg)
National Bank of Greece Corporate Presentation Apr21 Overview 93 Key Developments
2020: a year of challenges and transformatory achievements
• NPE reduction of €6.5b in 2020 driven by Frontier and organic flows, following a reduction of
Accelerated pace of NPE €4.9b in 2019, avoiding a hive-down
reduction despite Covid-19 • Domestic NPEs at €4.3b or 13.8% over gross loans (13.6% Group); coverage at 62.8%
• €0.4b in Frontier provisions in 4Q20 absorbed in Bank P&L
• 4Q20 CET1 at 15.7% (16.7% total), net of Frontier provisions and Covid-19 credit risk charges
• Agreement to sell 90% of Ethniki Insurance to CVC Capital reached and approved by our
Robust capital position post
BoD with HFSF consent
Covid-19 and Frontier
• Upon completion, Frontier and Ethniki Insurance will add a further c170bps over and above
provisions
the YE20 capital ratios
• Placement of the first green senior bond in Greece (€500m)
• Group cPPI, excluding NPE NII, up 25% yoy (like for like with 2019)
Solid operating
• Group COP – before trading & one off provisioning charges, at €328m, +41% yoy
performance; trading gains
• Group PAT (cont. operations) at €591m, post loan impairments of €1.1b
absorb one off impairments
• Rigorous cost cutting translates to annual Group cost savings of c€150m¹
• Ensured resilience of operations, allowing >50% of employees to work from home
Our Transformation Program
• Implemented targeted payment moratoria schemes to >85k client accounts
accelerates move towards a
• Accelerated digital functionalities and capacity reducing branch usage significantly
new business and operating
• Supported organic and inorganic NPE actions
model
1. Annual cost saving against FY18 costs
• Oversaw cost management across both personnel and G&A domains
National Bank of Greece Corporate Presentation Apr21 Key Developments 11Frontier transforms NBG’s balance sheet with zero capital impact
NPE flow¹ (€b) NPE decomposition¹ (€b)
FNPEs >30dpd & other
Net NPEs 4.4 1.6 impaired
10.8
10.1 FNPEProject Frontier: senior tranche will comprise c50% of the securitization
Portfolio attributes Securitization structure
~60% of Current NPE stock HAPS2 eligible
Of which c€0.3b reduced in
4Q20 on debt forgiveness,
curings & write offs Retain 100% of
c90k borrowers,
senior notes
~€6.0b of Gross Book Value
c200k loans c€3b
Corporate &
Consumer 6% Senior
SBLs 18% notes
~75% of NPE mortgages
c€6.0b c€6.0b
~90% secured by RE1 Gross Book
Residential 76% Value Retain at least c€0.5b
5% of mezz &
junior notes Mezzanine
Timeline & key milestones
notes
Key milestones completed Upcoming c€2.5b
Junior
3Q20 4Q20 1Q21 2Q21 notes
Rating HAPS Binding offers
Business Agencies application HAPS approval
Plan Feedback Non-Binding SRT approval Classified as HFS as of 31.12.20
Transaction offers Transaction
launch signing
Capital neutral transaction
1. RE: Real Estate Collateral
2. HAPS: Hellenic Asset Protection Scheme – “Hercules”
National Bank of Greece Corporate Presentation Apr21 Key Developments 13Solid track record of 8 transactions of c€12b in GBV
Jun Jul Nov Jun Oct Nov Jun
2018 2019 2019 2020 2020 2020 2021
Project Earth – Jun18 Project Leo – Nov19 Project Marina– Oct20 Project Frontier
• €2.0b • €0.3b • €0.3b • c€6.0b
• Unsecured Consumer / • Shipping loans • Cypriot, Corporate, SME • Mortgages (mainly), secured
Credit Cards, SBL • Purchaser: Funds advised and Retail Loans corporate & SBLs, consumer
• Purchaser: CarVal, Intrum by Cross Ocean Partners • Purchaser: Bain Capital
• Servicer: QQuant • Servicer: QQuant • Signed
Project Symbol – Jul19 Project Mirror – Jul19 Project Icon – Jun20 Project Danube - Nov20
• €0.9b • €1.2b • €1.6b • €0.2b
• Secured SME/ SBL Loans • Unsecured Consumer, CC • Secured Large Corporate, • Romanian, Corporate and
• Purchaser: Centerbridge, and SB SME and SB SME Loans
Elliott • Purchaser: CarVal • Purchaser: Bain Capital • Purchaser: Bain Capital
• Servicer: Cepal • Servicer: QQuant • Servicer: doValue • Signed
National Bank of Greece Corporate Presentation Apr21 Key Developments 14Ethniki Insurance sale to add c60bps of capital upon completion
Transaction highlights Key Company Financials
Agreement to sell 90% of Ethniki Insurance to CVC Capital
P&L (€m) – selective items 2018 2019 2020e
reached and approved by our BoD and HFSF (subject to
EGM approval in April) GWP & policy fees² 601 741 669
Capital accretive transaction at c60bps Net Income 28 57 67
Nominal consideration corresponding to 100% of Ethniki
Insurance up to €505m, including an earn-out payment,
subject to achievement of bancassurance targets in 2021- Solvency (€m)
2026 Own Funds⁴ 446 479 499
15 years exclusive Bancassurance agreement Solvency ratio (excl. TM) 138% 134% 132%
Expected closing 2H21, subject to regulatory approvals Solvency ratio (incl. TM) 194% 181% 172%
Fulfillment of DGComp restructuring plan commitment
Market shares Distribution channel split
467
FY19 Market Share (%) GWP¹ (€m) Bank
26% Tied
Agents
Life insurance 38%
17% 741 market share of 26% 444
Direct
12%
P&C market share of Brokers
8%
25% 238
1. Gross Written premium; 2. Incl. Investment contracts; 3. Based on PAT; 4. Excluding transitional measures
National Bank of Greece Corporate Presentation Apr21 15
Key DevelopmentsMoving steadily to transform NBG into the Greek Bank of First Choice
Safety and resilience Acceleration of digital
of operations transformation
• Health and safety of our employees, customers and • Digital subscribers reach 3.0m in Dec (+26% yoy)
stakeholders is our top priority
• Digital monthly active users at 1.7m in Dec (>50%yoy);
• c.50% of staff working remotely, efficiently and cyber- market share at 33% for mobile and 27% for internet
securely banking
• Increased capacity of alternative channels and adapted • c620k clients registered to digital channels during 2020, of
processes to serve customers remotely while maintaining which c245k via the self-service onboarding process
adequate controls; only c5% of total transactions currently
• Branch transactions in 4Q20, gradually reduced by
undertaken in branches
c2/3rds vs pre Covid-19 levels, substituted by e-banking
transactions up by nearly 50%; # of transactions reaching
pre Covid-19 levels
National Bank of Greece FY20 results Key Developments 16First signs of expired moratoria payment performance are encouraging
Support to corporates & households
• Payment moratoria of €3.8b expired on 31.12.20
• Approximately half of moratoria clients (€ terms) have not requested further payment assistance and are low risk clients
• State subsidy program “Gefyra” to primary residence mortgages at €1.4b; c40% previously under moratoria – Gefyra II (installment State
subsidy) for SMEs to be launched shortly
• NBG step up facility “EthnoGefyra” offers 12 month, 50% instalment reduction to clients in need; current take up over €100m
• State guaranteed working capital facility given, amounting to €1.4b
• Interest payment subsidies corresponding to €2.3b of loans
• TΕΠΙX II loans given, amounting to c€0.4b
Moratoria status
€3.8b Total
moratoria¹
Moratoria perimeter (PEs, FPEs)
Non expired Gefyra I & Step up
domestic moratoria II c20% c20%
at just €2m
• >95% of clients current
Expired in /Transformation Program acts as a competitive advantage supporting change
PURPOSE, VALUES & BRAND
(PVB)
Our Transformation Program (launched
~2.5 years ahead of peers) has evolved
HEALTHY EFFICIENCY BEST BANK into a competitive advantage
BALANCE SHEET & AGILITY FOR OUR CLIENTS
(HBS) (ENA) (BBC) 1 platform for strategy implementation
(incl. digital transformation, ESG) and
DIGITAL LAYER business plan target achievement
45+ initiatives with ambitious, tangible
TECHNOLOGY PEOPLE, ORGANISATION & VISIBILITY, CONTROL & objectives, reviewed every 6 months to
& PROCESSES CULTURE COMPLIANCE ensure continuous focus and agility
(TEP) (POC) (VCC)
1,000+ colleagues actively involved in
cross-functional teams to ensure
delivery and sustainable change
DELIVERY ENGINE (Transformation Program Office - TPO)
National Bank of Greece Corporate Presentation Apr21 Key Developments 18Transformation Program supports move towards a new business and operating model – Balance Sheet and P&L
Selected achievements in 2020 Key metrics 2018 2019 2020 YoY
HEALTHY • Frontloaded inorganic actions with Projects Icon, GBV inorganic transactions
2.0 2.4 8.1 +238%
BALANCE Marina & Danube and Frontier securitization (€ b)
SHEET (HBS) • Early detection tools and organic solutions to Split & Settle restructurings
minimize new flows due to Covid-19 0.04 0.74 0.84 +14%
(€ b)
• Full operationalization of REO unit RE sales (€ m) 0 7 12 +71%
EFFICIENCY & • Completion of 2020 Voluntary Exit Scheme (VES)
Domestic headcount (FTEs K) 9.2 8.5 7.9 -7%
AGILITY (ENA) and further consolidation of branch network
• Full operationalization of new Demand
Management function and enhanced Procurement 3rd party personnel (FTEs K) 1.4 1.2 1.1 -5%
policy
Branches (#) 461 389 366 -6%
• Targeted efforts on management of legal and real
estate spend (incl. capture of efficiencies from WFH) 356 branches 1Q21
• Enhanced Value Based Management (VBM)
framework for further incentivization of cost control
BEST BANK • Enhanced Corporate RM coverage model and tools
SME lending clients (K)1 3.7 3.9 4.1 +5%
FOR OUR • Full operationalization of new Corporate
CLIENTS (BBC) Transaction Banking (CTB) unit setup
Corporate clients/RM (#) c.130 c.100 c.100 -
• Increased Retail cross-sales of product bundles
• Full roll out of new customer-centric operating model Retail bundles (K) 0 440 484 +10%
in branch network
• Increased level of transaction migration to Share of transactions on
alternative channels 80% 83% 91% +9pp
alternative channels2
1. SME segment defined as legal entities with turnover €2.5m-€50m or turnover €1m
2. Alternative channels include digital (internet, mobile), ATM and APS; total transactions include all teller and non-teller branch transactions
National Bank of Greece Corporate Presentation Apr21 Key Developments 19Transformation Program supports move towards a new business and operating model – Digital
Selected achievements in 2020 Key metrics 2018 2019 2020 YoY
DIGITAL LAYER • Increased level of new registrations and app
Registered subscribers (m) 2.0 2.4 3.0 +26%
downloads by individuals and businesses
• Increased level of digital onboarding (self-service) of
existing and new customers Mobile app downloads (m) 0.9 1.4 2.3 +63%
• Introduction of new digital functionalities for
Digital 12M users (m) 1.1 1.4 2.1 +45%
individuals, including:
‒ Peer-to-peer (P2P) instant transfers Digital 1M users (m) 0.9 1.2 1.7 +52%
‒ Card sales (debit/prepaid/virtual/credit) Digital onboardings of new &
0 41 245 +498%
‒ Time deposit, savings & current account sales existing customers (K)
‒ Instant credit cards Digital sales (K) 0 91 204 +124%
‒ Instant consumer loans 1st in Greek market
‒ Safe wallet insurance
• Introduction of new digital functionalities for
businesses, including:
‒ Online legalization
‒ Online disbursements and repayments
‒ Connection through APIs
1. Digital active customers defined as those who used NBG’s Internet Banking and/or Mobile Banking platforms at least once in the last year (12M) or in the last month (1M)
National Bank of Greece Corporate Presentation Apr21 Key Developments 20Transformation Program supports move towards a new business and operating model – Enablers
Selected achievements in 2020
TECHNOLOGY • Completion of new wave of back-office centralisation (covering Corporate loan administration and Trade Finance operations)
& PROCESSES • Continuation of efforts for core process re-engineering (e.g., Corporate & Small Business lending, Collateral Management), incl. use of
(TEP) RPAs
• Launch of Core Banking System (CBS) replacement program and further enhancement of other key systems (e.g., Card Management)
• Launch of cloud migration program
• Enhancement of IT resources to support acceleration of digital transformation
• Recognition of top position in Europe in API scope and developer experience by independent 3rd party, Innopay
PEOPLE, • Roll-out of new performance management system and incentive scheme for staff
ORGANISATION • Establishment of NBG Academy and launch of flagship leadership programs and special curriculum for high potential talent
& CULTURE
(POC) • Completion of first Bank-wide Employee Engagement Survey as part of culture/change management program
VISIBILITY, • Ongoing credit policy, framework and model modernization effort to enable sustainable growth across segments
CONTROL & • Enhancement of bank-wide operational risk framework and risk culture/awareness program
COMPLIANCE
(VCC) • Full operationalization of new Internal Control Function and design of adequate and efficient controls for very high priority processes
(incl. for WFH operating model)
National Bank of Greece Corporate Presentation Apr21 Key Developments 214 Financial Highlights
NBG FY20 Group financial highlights
FY20 PAT cont. ops FY20 COP¹ CoR
€591m €328m €1.1b, 403bps
of which
106bps¹
up +26% yoy, post €1.1b of provisions up by 41% yoy, reflecting core income
including for Covid-19 and Frontier resilience and rigorous cost cutting
securitization
underlying
Personnel Costs 2 NPEs €4.4b 3
CET1
-8.2%yoy 15.7%
Net NPEs at €1.7b
NPE ratio 13.6%
3,4
Total Capital
16.7%
2
G&A Costs NPE Coverage3
2
-11.8%yoy 63.3% Capital position net of Frontier and
Covid-19 provisions and Ethniki
Insurance impairment; c170bps
additional benefit upon both
transactions’ completion
1. Excluding provisions related to Covid-19 and Frontier securitization, 2. Domestic level, 3. Group; domestic level NPEs at €4.3b, coverage at 62.8%, NPE ratio 13.8%, 4. Pro forma for the recognition of Frontier senior notes of
c€3b
National Bank of Greece Corporate Presentation Apr21 Financial Highlights 23FY20 PAT from continued operations reaches €591m, +26% yoy
P&L Highlights P&L | Group
€m FY20 FY19 YoY 4Q20 3Q20 QoQ
FY20 PAT (cont. operations) up 26% yoy to €591m absorbs loan
NII 1 169 1 190 -2% 314 304 +3%
impairments of €1.1b mostly due to the Frontier securitization and
Net Fees & Commissions 256 256 +0% 68 65 +5%
Covid ECLs Core Income 1 424 1 446 -1% 382 369 +3%
Excluding trading income and one off provisions, FY20 COP grew Trading & other income ¹
1 098 230 >100% 268 43 >100%
+41% yoy, at €328m; NII and Fees continued recovering in 4Q20. Income 2 522 1 675 +51% 650 412 +58%
Operating Expenses (814) (846) -4% (210) (198) +6%
More specifically:
Core PPI 610 600 +2% 171 171 +0%
• NII +3% qoq reflecting funding cost benefits and lending NII PPI 1 708 829 >100% 440 215 >100%
expansion; 2H20 NII, +12% hoh, leaves FY20 NII marginally Loan Impairments (1 071) (367) >100% (431) (78) >100%
lower yoy Operating Profit 637 462 +38% 9 137 -94%
• Against Covid-19 headwinds, fees kept recovering in 2H20 Core Operating Profit² 328 232 +41% 100 97 +3%
Other impairments (35) 21 n/m (19) 3 n/m
(+5% qoq in 4Q20), driven by retail fees and supported by
PBT 602 483 +25% (10) 140 n/m
successful efforts to engage clients in our digital offering Taxes (11) (13) -17% (1) (3) -83%
PAT (cont. ops) 591 470 +26% (11) 137 n/m
• Containment of domestic personnel and G&A expenses,
PAT (discont. ops) (362) (480) -25% (354) (22) >100%
yielded sharp reductions of -8.2% and -11.8% yoy in FY20,
VES, restructuring & other (189) (226) -16% (58) (15) >100%
following a combined -10.8% reduction in FY19
Minorities (2) (18) -90% (1) (0) +25%
• FY20 credit risk charges reach €1.1b, or 403bps over net loans PAT 38 (255) n/m (423) 101 n/m
in FY20, reflecting mostly the Frontier securitization (€0.4b) and
Covid-19 (€0.4b); underlying CoR stood at 106bps – in line with
management guidance
1: Includes the gains from the GGBs (€1.0b) / 2: COP calculations exclude trading & other income and loan impairments related to Covid-19 (c€0.4b) and Frontier (c€0.4b) in 2020
National Bank of Greece Corporate Presentation Apr21 Financial Highlights 24Frontier transaction pushes the NPE ratio down to 13.6% on a CET1 of 15.7%
Asset Quality, Liquidity & Capital Highlights Key P&L Ratios | Group
4Q20 3Q20 2Q20 1Q20 4Q19
4Q20 domestic NPE stock drops to €4.3b, net NPEs at €1.6b
NIM1 (bps) 228 222 216 236 261
• NPEs are down by €5.8b qoq in 4Q20, driven by the Frontier HFS
transfer, while organic flows remain negative Cost-to-Core Income 55% 54% 60% 60% 62%
• New defaults remained low, as the drop in economic activity has
Core PPI margin (bps) 244 236 181 188 189
been cushioned by large fiscal support
CoR (bps) 242 104 95 239 147
Loan disbursements at €4.7b in FY20, up by 40% yoy
• Aided by State schemes, disbursements accelerated further in COP margin2 (bps) 137 133 90 92 42
4Q20 to €1.6b, reaching €4.7b in FY20
• FY20 domestic deposits increased by c€4.7b yoy, reaching c€47b, Key Balance Sheet Ratios | Group
on private deposit inflows in the aftermath of fiscal support from
4Q20 3Q20 2Q20 1Q20 4Q19
the Government
Liquidity
CET1 ratio at 15.7%, total capital at 16.7% Loans-to-Deposits 55% 65% 65% 64% 67%
• 4Q20 CET1 at 15.7%, absorbing the Frontier securitization LCR 232% 196% 216% 171% 207%
Asset quality
provisions. Total capital ratio, at 16.7%, more than 550bps above
NPE ratio 13.6%³ 29.3% 29.9% 30.8% 31.3%
minimum regulatory levels
NPE coverage 63.3% 56.7% 57.2% 56.2% 53.4%
• Upon completion, the Frontier and Ethiniki Insurance transactions Capital
will boost capital by c170bps from FY20 levels CET1 15.7% 15.9%⁴ 15.9%⁴ 15.5%⁴ 16.0%
CET1 FL 12.8% 13.0%⁴ 13.0%⁴ 12.6%⁴ 12.8%
RWAs (€ bn) 36.6 36.2 36.1 36.9 37.4
1: Calculated on monthly average IEAs / 2: Excluding trading & other income and Covid-19 related provisions of €0.4b and Frontier provisions of €0.4b / 3: Pro forma for the recognition of Frontier senior notes of €3b / 4. Including period PAT
National Bank of Greece Corporate Presentation Apr21 Financial Highlights 254Q20 CET1 and Total capital at 15.7% and 16.7%, absorbing Frontier and Covid-19 provisions
4Q20 Capital movement
Zero capital impact from
Frontier securitization
Frontier & Ethniki
CAD FL Insurance completion
+1.7%
13.8%
16.9% +1.0% 16.7%
-1.1%
-0.1%
11.0% 2 CAD
15.9% CET1 FL: 13.0% CET1 FL: 12.8% 15.7%
2
6.19% CET1
3Q20 4Q PAT Frontier Other 1 4Q20 Frontier & Ethniki 2021 regulatory
Insurance completion capital requirement
RWAs (€ b) 36.2 36.6
CET1 (€ b)
5.8 5.7
1. Includes FVTOCI, RWAs, IFRS9 Dynamic add-on, reversal of software deduction and other / 2. CET1 & OCR at 6.19 % & 11.0% respectively, excluding O-SII buffer of 50bps, subject to BoG approval. CET1 also incorporates the
allowance to partially use Additional Tier 1 or Tier 2 instruments, to meet the Pillar 2 Requirements (“P2R”)
National Bank of Greece Corporate Presentation Apr21 Financial Highlights 26Ιn two years c€150m of costs¹ have been cut – cost savings will continue
Personnel & G&As costs (€ m) | Domestic Headcount & branches | Domestic
HR cost FTEs (#) Branches (#)
-€84 (-16%) -1.9k -130
536
492
451 9.8 486
7.6k at Bank level 461
9.2
8.5 389 366
G&As 356
7.9
-€61m (-27%)
230
192
169
2
FY18 FY19 FY20 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 12M20 1Q21
1. annual cost savings against FY18 cost base / 2. As of March 10th
National Bank of Greece Corporate Presentation Apr21 Financial Highlights 275 Outlook
Reaching a 6% NPE ratio on negative formation and transactions of c€1.5b
NPE evolution 2020-2022¹
Organic formation 2021-22
-€0.8b
+c€1.4b
NPE ratio
13.5%
€4.2b
Assuming
moratoria defaults
up to a max of NPE ratio
€0.6b -c€2.2b
c6%
c€1.8b
3.4
-c€1.5b
1.9
2
FY20A NPEs Organic inflows Organic outflows Sales/securitizations FY22E NPEs
1 Bank level 2. includes liquidations, debt forgiveness and recoveries
National Bank of Greece Corporate Presentation Apr21 Outlook 29Organic capital generation and completion of transactions yield 2022 CET1 of >16%
• Post Ethniki Insurance and Frontier completion capital ratios will be enhanced by c170bps
• 2020-2022 CET1 uplift of c50bps, despite 200bps impact from IFRS9 transitional adjustment
Group capital evolution 2020-22
Frontier & Ethniki Room for additional 200bps T2 and
Insurance completion +c2.5% AT1 issuance
+c1.7% Existing T2 at 100bps
16.7% -2.0% -0.8%
CAD -0.8%
2023 is the final year
of adjustment
2023 CET1
11.0%
threshold
CET1 15.7% CET1 FL: 12.8% CET1 16.2% CET1 FL: 15.2%
2 2022 CET1
6.19% threshold
1
4Q20 Frontier & Ethniki PAT 21-22 IFRS9 transitional DTC amortization RWA Δ from credit 2022 CET1 regulatory
Insurance adjustment expansion capital
completion requirement
1 Includes loss budget / 2. CET1 at 6.19%, excluding O-SII buffer of 50bps, subject to BoG approval. CET1 also incorporates the allowance to partially use Additional Tier 1 or Tier 2 instruments, to meet the Pillar 2 Requirements
(“P2R”)
National Bank of Greece Corporate Presentation Apr21 Outlook 302022 core RoE1 of c9% reflects a clean balance sheet and higher efficiency
Group core operating profit evolution 2020-2022
CoR of c60bps in FY22
C:CI improvement
• NII CAGR -3% c400bps Core RoE
• Fees CAGR +10% c9%
1
+c€120m c€490m
+c€70m
€328m -c€30m
• Swift NPE clean up
• High coverage
• NPE NII reduction • FTE reduction levels
of €126m, almost • Branch rationalization • High amount
368 of
fully offset by PE • G&A demand
298 Covid-19
NII growth, funding management provisions already
benefits and fees • Shift to digital incurred
FY20A COP Δ Core income 20-22 Δ Opex 20-22 Δ underlying CoR 20-22 FY22E COP
1 core RoE calculated as recurring core operating profit over tangible equity
National Bank of Greece Corporate Presentation Apr21 Outlook 316 Financial Results
FY20 COP1 up by 41% yoy to €328m; Covid-19 and Frontier one off impairments are fully offset by trading gains
Group operating profit decomposition semi-annual (€ b) Group operating profit decomposition annual (€ b)
492 146 Operating profit¹(€) 462 637 +38% yoy
COP¹ margin (bps) 79 115 +36bps yoy
132 196 COP¹ (€m) 232 328 +41% yoy
Non core
1.1 income (€b)
0.8 0.3
Non core
income (€b) 0.2 Core PPI +25% yoy
excl. NPE NII (lfl)
Core PPI
+28% hoh
Core PPI (€b)
0.34 0.60 0.61
Core PPI (€b) 0.27
CoR underlying CoR underlying (€b)
(€b) -0.1 -0.1 -0.4 -0.3
Underlying FY20
CoR at 106bps
in line with CoR Covid-19 (€b)
CoR Covid-19 (€b) CoR Frontier (€b) -0.4
guidance
-0.4 -0.4
-0.4 CoR Frontier (€b)
1H20 2H20
FY19 FY20
1. Operating profit as reported. COP & COP margin excluding one-off impairments related to Covid-19 and Frontier securitization
National Bank of Greece Corporate Presentation Apr21 Financial Results 33Domestic NII recovers from 2Q20 lows, on the back of funding cost reduction and lending NII expansion
Domestic NIM (€ m) & CoR (bps) Domestic NII breakdown (€ m)
NIM¹ 258
Lending NII 277
232 223
214 220 259 +2% qoq
260 255
250 244 247
Reported
153
97 104
CoR
153
100 94 103 103 Underlying
Loans (PE) Incorporates the FY20
205 impact of mortgage
202 197 rewards for current
203
195 clients ‘Epistrofi’
(c-€3m in 4Q20)
NII 290 296
272
262 259
Loans (NPE)
72 +€9m qoq due to
53 62 one-offs
57 52
Securities 49
52 48 49 49
Eurosystem, 6 2
-21 -16 -12 -20 -15
4Q19 1Q20 2Q20 3Q20 4Q20 wholesale & other
-24
-30
Deposits -35
4Q19 1Q20 2Q20 3Q20 4Q20
1. over monthly IEAs
National Bank of Greece Corporate Presentation Apr21 Financial Results 34PE yield of 3.3% remains at satisfactory levels despite historically low interest rates
Greek lending yields1 (bps) Greek new production lending yields1 (bps)
390 320 321 329 Total Book
Total 357 344 338 327 326
Performing 1001 992
924
855 Consumer
862 653 618
854 853 611 579
840 832 SBLs
Consumer
325 325 330 329 Including lower
Mortgages yield – lower risk
Covid-19 loans
341 272 273 Corporate
293
SBLs 637 631
616 623 614
1Q20 2Q20 3Q20 4Q20
Greek forborne, PE & total lending yields
360 Performing 3.6%
Corporate 341 330 3.4%
315 310 3.4%
3.3% 3.3%
Total² 3.5% 3.3%
209 207 207 3.3% 3.2% 3.2%
205 204
Mortgages
2.7%
Forborne³ 2.5% 2.4% 2.5%
4Q19 1Q20 2Q20 3Q20 4Q20 2.3%
4Q19 1Q20 2Q20 3Q20 4Q20
1. Calculated on performing loans / 2. Includes NPEs /3. Includes FPEs & FNPEs
National Bank of Greece Corporate Presentation Apr21 Financial Results 35Driven by expansionary fiscal and monetary policies, deposits are up by €4.7b or 11% yoy despite repricing
Greek deposit yields (bps) Greek deposit evolution (€ b)
74% 80% Core deposits/total
64
+€4.7b/+11% yoy
52
41
47.0
31
23 Term 44.0
54 43.3 43.7
53 42.2
New 9.6
production -€1.5b
at 15bps 10.5 -13.9% yoy
12.4 10.5
11.1
Time
36 13.1
33 32 10.7
10.5 +€2.9b
10.2 10.0
29 +28.6% yoy
Sight &
21 21 other
18 Sight
13 24.3
20.9 21.5 22.2 22.5 Savings
Total
+€3.4b
+16.1% yoy
2 2 2 2 2 Market share
Savings
at 35.3%
4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20
National Bank of Greece Corporate Presentation Apr21 Financial Results 36Despite Covid-19 headwinds, FY20 domestic fees end up slightly higher on strong retail fees (+12% yoy)
Domestic fees (€ m) Domestic retail fees decomposition (€ m)
YoY
35bps 36bps 39bps 36bps Fees/Assets1
140
+12%
YoY 125
Intermediation & 43 +14% +25% yoy
242 244 +1% other 37 adjusting for the
Bancassurance -7% impact from
13
-14% international
28 14
33 Digital channels 22 -1% card holders
22
Cards 37
35 39 +38%
28
Lending fees 11 10
3 4
75 -10% 7 6
9 12 23 23 +1%
84 5 5
3Q20 4Q20 FY19 FY20
Domestic corporate fees decomposition (€ m)
YoY
84
75 -10%
65 +12% 9
61 140
9 125 12 +39%
6 Investment banking
& other
20 19
56 Due to Covid-19
Non lending fees 46 -18% impact on Trade
35 37 Finance and LGs
20 19
Lending fees 6 2
11 11 19 17 -10%
3Q20 4Q20 FY19 FY20
4 6
Retail Fees Wholesale Fees Fund mgm, Brokerage & other 3Q20 4Q20 FY19 FY20
1: Domestic, including assets held for sale
National Bank of Greece Corporate Presentation Apr21 Financial Results 37Transactions recover to pre Covid-19 levels, aided by digital transformation
Transactions per channel (m) Transactions per channel (volume € m)
Pre Covid-19 1st Lock-down 2nd FY20/FY19
Pre Covid-19 1st Lock-down 2nd FY20/FY19
yoy ±% yoy ±%
yoy% ± yoy% ±
44.7
43.9 47.0 47.6
42.1 46.6
-5% 44.1 42.5 -3%
40.7 40.9 44.7
Total 42.9
Total 37.8 37.5
-3% -4%
Despite Covid-19 39.4 Despite Covid-19
35.4 related restrictions related restrictions
27.3 27.0
23.4 25.8
22.4 22.4 Branches 24.6
21.7 22.8 23.4 -15%
20.5 20.8 22.7
-10%
ATMs & 19.3
18.1 20.0
APS -3% -16%
20.6 +33%
19.4 +16%
16.4 17.3
16.4 15.8
13.9 14.2 E-banking 15.1 15.4
+33% +15%
E-banking 12.3 12.5 12.9 13.9
11.4
10.4
4.4 4.5 4.7 4.7 4.9
3.9 3.9 4.0
Branches 7.0 6.9 7.4 7.4 -62%
ATMs & +1%
5.7 -51% +6%
APS
3.1 2.8 2.5
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
National Bank of Greece Corporate Presentation Apr21 Financial Results 38Domestic C:CI at 56.9% (-200bps yoy), on lower personnel (-8%) and G&A expenses (-12%); 4Q20 run rate at 55.2%
Group OpEx by category (€ m) Domestic Branch evolution (#)
Domestic Group
528 527
FY20 FY19 yoy FY20 FY19 yoy
510 -105 branches
486
Personnel 451 492 -8.2% 476 515 -7.5% 461
G&As 169 192 -11.8% 184 206 -11.1%
Due to IFRS16
following
Prodea Depreciation 148 121 +22.5% 154 125 +23.5% 389
deconsolidation 366 356
Total 768 804 -4.4% 814 846 -3.8%
1
FY14 FY15 FY16 FY17 FY18 FY19 FY20 1Q21
Cost over Core Income (%) breakdown Group headcount evolution (# k)
Cost/ core
58.9 56.9 55.2 58.558.9 57.256.9 55.155.2
income %
-200bps yoy -137bps yoy
25.1
Personnel cost/ 19.8
core income % 36.0 33.4 35.6 33.4 10.1
31.0 30.9 7.6K at Bank level
7.8
11.5 11.2 10.5 2
9.8 9.6 9.6 9.6 9.3 SEE &
G&As/ 1.6 1.4 1.3
12.7 13.1 1.4 1.4 1.3 1.3 1.3 Other
core income % 14.0 12.5 14.3 12.9 15.0
12.0
9.9 9.8 9.2 8.5 8.2 8.2 8.3 7.9
Depreciation/ Greece
8.9 11.0 11.5 8.6 10.8 11.0
core income %
FY19 FY20 4Q20 FY19 FY20 4Q20 FY09 1 FY15 FY16 FY17 FY18 FY19 1Q20 2Q20 3Q20 4Q20
Domestic Group
1. As of March 10th. / 2. Excludes employees under discontinued operations
National Bank of Greece Corporate Presentation Apr21 Financial Results 39Corporate PE expansion continues in 4Q20, on loan disbursements of €4.7b (+40% yoy)
Greek loan evolution: performing loans1 (€ b) Loan disbursements (€ b)
27.8 27.9 27.6 28.0 25.5 Net loans2
FY20
Mortgages Consumer €4.7b
SBL Corporate
23.8 +40% yoy 1.6
23.0 23.5 +€1.0b
22.8 22.9
+5% yoy
FY19
€3.3b
+€1.8b
+14% yoy 1.2
1.1
12.2 13.4 14.0 1.1
12.6 12.8
0.9 1.4 Corporate
0.7 0.7
1.0 1.0 0.6 1.0
0.9 0.9 1.1 1.0 0.9
1.6 1.5 1.5 1.4 1.3
0.8
0.6 0.6
0.5
8.0 7.8 7.8 7.7 7.5
Retail
0.2 0.2
0.1 0.1 0.1 0.1
0.1 0.1
4Q19 1Q20 2Q20 3Q20 4Q20 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
1. Performing loans = Gross loans net of NPEs / 2. Net loans = Gross loans net of provisions
National Bank of Greece Corporate Presentation Apr21 Financial Results 40Funding cost drops to near zero levels, reflecting deposit repricing and ECB’s TLTRO funding facility
Eurosystem funding (€ b) NBG Funding Cost (bps)
41
31
19
12
7
0 Blended
-17
24.0
-50
-67 -67
ECB²
ELA¹ 11.5 4Q19 1Q20 2Q20 3Q20 4Q20
LCR: 232%
NSFR: 121%
Repo position : €0.3b Funding structure (%)
12.3
2%
2%
5.6 Current,sight & other Deposits of €47b
Deposits 18% comprise c80% of
total funding
Time Deposits
ECB 12.5
10.5 10.5 10.5
ECB funding c€60b
6.7
16%
2.8 3.4 Interbank funding
2.2 2.2 62%
4Q15 4Q16 4Q17 4Q18 4Q19 1Q20 2Q20 3Q20 4Q20 Long term wholesale
Debt
Of which
Senior debt €0.5b
Tier II €0.4b
1 ELA funding eliminated since 2017 / 2 TLTRO CoF reflects the funding cost of the facility over its life
National Bank of Greece Corporate Presentation Apr21 Financial Results 41Domestic deposits are up by €4.7b or +11% yoy
Deposit evolution by geography (€ b) NBG domestic deposit flows (€ b)
YoY
Group 43.7 45.5 44.8 45.2 48.5 +10.9%
4.7
3.4
SEE & 1.5 1.5 1.5 1.5 1.5 +1.2% 1.5
1.1
Other 0.2 0.5
47.0 +11.2%
44.0 43.3 43.7
42.2
Greece +€11.5b Core: +€6.1b
Time: -€1.4b
Premium & Mass: +€3.6.b
Corporates: +€1.2b
-2.2
-3.6
-4.8
-€10.6b
4Q14 1Q15 2Q15 2H15 FY16 FY17 FY18 FY19 FY20
4Q19 1Q20 2Q20 3Q20 4Q20
National Bank of Greece Corporate Presentation Apr21 Financial Results 42Organic formation remained negative throughout FY20, pushing the NPE balance low, down by €6.5b including Frontier
Domestic NPE stock per category – 4Q20 (€ b) NPE balance change (€ m, Bank)
5.9
FNPE & other 1.7
impairedThe Frontier securitization affects all NPE books substantially
Mortgages (€ m) Consumer (€ m) NPE change1 (€ m)
16
-33 -3 -26 -7 -161 -242 -158
-294 -173 -184 -205 -52 -468 -70 Organic
-2 -57 -62 -16
-4,326 -316 -313
4Q19 1Q20 2Q20 3Q20 4Q20
4Q19 1Q20 2Q20 3Q20 4Q20
SBLs (€ m) Corporate (€ m)
1
-5,682 Inorganic
-32 18 4 13
-4 -37 19 4
-16 -110
-19 -5 -9 -6
-293 -52 -50 -10
-484 -555
4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20 3Q20 4Q20
4Q19 1Q20 2Q20 3Q20 4Q20
1. Bank perimeter, including write offs; includes Frontier
National Bank of Greece Corporate Presentation Apr21 Financial Results 44Post Frontier coverage at 63%, with FNPEs
Loan portfolio mix changes, reflecting Frontier impact and ongoing PE expansion
Group loan stage evolution (€ b) Group S2 ratio and coverage (%) Group S3 ratio and coverage (%)
Δ qoq
Stage 3
10.9 10.4 10.2
4.4 -5.8
o/w:
€2.4b FPEs
31.2%
€1.8b SICR 29.9%
€0.3b +30dpd 29.2%
Stage 2
4.8 5.2 4.9 4.5 -0.4
14.9%
13.9% 14.0% 14.0% ¹ Ratio
13.5%¹ Ratio
49.0% 51.4% 51.1%
19.1 19.1 19.8 20.5
+0.7
Stage 1
6.8% 7.3% 7.2% 5.4% Coverage 53.7% Coverage
31.12.19 30.06.20 30.09.20 31.12.20 31.12.19 30.06.20 30.09.20 31.12.20 31.12.19 30.06.20 30.09.20 31.12.20
1. Pro forma for the recognition of Frontier senior notes of c€3b
National Bank of Greece Corporate Presentation Apr21 Financial Results 467 ESG Framework
NBG has a long history of ESG action and leadership in Greece and abroad
Selected ESG milestones
NBG Cultural First NBG CSR report NBG NBG NBG Green Bond
Foundation recapitalization Crowdfunding Framework &
(MIET) by ESG-focused Platform 1st Green Bond in
shareholders Greece
1966 2007 2008 2010 2014 2015 2016 2018 2020
CSR Hellas Hellenic Bank Sustainable UN Global UNEP FI,
Association Greece 2020 Compact Climate Action
Sustainability in Financial
Committee Institutions
ESG memberships
National Bank of Greece Corporate Presentation Apr21 ESG Framework 48We have clear priorities and achievements across all ESG areas
Key ESG actions and achievements Selected ESG metrics
• Strong commitment to green energy with €0.5b disbursements in 2020 RES Corporate PEs (€ BN)1
• Issuance of first green bond in Greece (€500m) in 2020 1.0
• Offering of retail green products (‘Green Loan’, ‘Estia Green Home’) 0.8
• LEED certification for sustainability for IT & Operations Centre building 0.6
Environment • 0.5
Reduction of consumption in last 3 years of oil (-73%) and energy (-21%)
• Reduction of CO2 emissions in last 3 years (-25%)
• Reduction in paper use (11+ mn pages) due to e-signatures & e-documents
• Recycling of paper (51 tons), batteries (2.5 tons) & equipment (213 tons) 2017 2018 2019 2020
• Focus on gender equality, with high representation of women at all levels
• Active support of public health incl. Covid-19 response (c.€15m in 2015-20) Female representation
• Significant contribution to culture, mainly through NBG Cultural Foundation Female 30% 40%
(c.€13m in 2015-20) 52%
Social
• EIB loan programs for Climate Action & Female Empowerment (€50m) and Male 70% 60%
for Agriculture & Bioeconomy (€100m) 48%
• Microfinancing via EaSI Guarantee scheme (€20m disbursements in 2020) GMs & Managers2 Bank
• NBG Business Seeds program to foster entrepreneurship, now in its 12th year AGMs
• Creation of Initiative 1821-2021 with 14 other foundations marks 200th
Board composition
anniversary since the Greek revolution through >130 science & cultural events
Exec Female
• Best-in-class Board structure, with Senior Independent Director role and high
15%
diversity in terms of nationality, expertise/background, age and gender 31%
• 6 Specialized Board Committees, with Compliance, Ethics & Culture Independent 54%
31%
Governance Committee focusing on relevant topics at highest level non-exec 69%
• Robust governance framework, with revamped Corporate Governance Code
Non-exec Male
& Group Governance policy
1.Excl. Corporate off-balance sheet exposures and Retail PEs
2.Incl. HQ and Branches
National Bank of Greece Corporate Presentation Apr21 ESG Framework 49NBG registers continuous improvement in ESG ratings and has been awarded for CSR & governance
ESG ratings ESG awards
ESG rating 2018 2019 2020
‘Best Corporate Governance
ESG rating BB BBB BBB Bank - Greece’ (2016)
Environment score 1 1 1
Social score 1 2 1 ‘Diamond award’
(2017-18, 2018-19)
Governance score 2 2 2
Carbon disclosure score D C C ‘Best Corporate Governance -
Greece’ (2016, 2017, 2018, 2019)
ESG index
‘Best Corporate Governance
Gender equality index Bank - Greece’ (2018)
National Bank of Greece Corporate Presentation Apr21 ESG Framework 508 Appendix
Group Balance Sheet & P&L
Balance Sheet¹ | Group P&L¹ | Group
€m 4Q20 3Q20 2Q20 1Q20 4Q19 €m 4Q20 3Q20 2Q20 1Q20 4Q19
Cash & Reserves 9,175 6,750 6,705 5,650 3,519 NII 314 304 273 278 289
Interbank placements 3,440 3,899 3,562 3,794 3,008
Net fees & commissions 68 65 57 66 71
Securities 15,596 14,907 15,276 11,586 9,408
Core Income 382 369 330 344 360
Loans (Gross) 29,515 35,014 34,755 34,917 34,983
Trading & other income 268 43 12 774 (20)
Provisions (Stock) (2,707) (5,727) (5,864) (5,961) (5,761)
Income 650 412 342 1 118 340
Goodwill & intangibles 282 251 236 213 202
RoU assets 1,177 1,214 1,231 1,250 1,254 Operating Expenses (210) (198) (199) (208) (223)
Property & equipment 487 474 473 463 467 Core Pre-Provision Income 171 171 131 137 138
DTA 4,909 4,909 4,909 4,909 4,911 Pre-Provision Income 440 215 143 910 118
Other assets 8,354 8,379 8,405 7,996 7,804
Loan Impairment (431) (78) (76) (486) (107)
Assets held for sale 7,259 4,465 4,471 4,352 4,453
Operating Profit 9 137 67 425 11
Total assets 77,485 74,536 74,160 69,168 64,248
Core Operating Profit² 100 97 65 67 31
Interbank liabilities 12,724 12,712 12,847 7,260 4,449 Other impairment (19) 3 (6) (14) 10
Due to customers 48,504 45,218 44,763 45,463 43,748 PBT (10) 140 62 411 20
Taxes (1) (3) (3) (4) (2)
Debt securities 970 1,404 1,386 1,379 1,370
PAT (cont. ops) (11) 137 58 407 18
Other liabilities 5,025 4,931 5,060 5,137 4,610
PAT (discont ops) (354) (22) 10 3 (571)
Lease liabilities 1,245 1,278 1,292 1,304 1,311
Liabilities held for sale 3,939 3,547 3,479 3,467 3,482 VES, restr. & other one-offs (58) (15) (12) (105) (80)
Non-controlling interest 20 20 19 19 18 Minorities (1) (0) (0) (1) -
Equity 5,059 5,426 5,314 5,140 5,259 PAT (423) 101 56 304 (633)
Total equity and liabilities 77,485 74,536 74,160 69,168 64,248
1 Numbers reflect NBG Egypt reclassification from HFS/ 2. COP calculations normalize for €0.4b of Covid-19 provisions and €0,4b of Frontier provisions
National Bank of Greece Corporate Presentation Apr21 Appendix 52Geographical segment P&L: Greece & Other International
Greece International¹
€m 4Q20 3Q20 2Q20 1Q20 4Q19
€m 4Q20 3Q20 2Q20 1Q20 4Q19
NII 296 290 259 262 272
NII 18 15 14 16 17
Net fees & commissions 65 61 54 63 68
Net fees & commissions 3 3 3 3 3
Core Income 360 351 313 325 340
Core Income 21 18 16 19 20
Trading & other income 269 45 10 775 (20)
Trading & other income (1) (2) 3 (1) (0)
Income 629 396 323 1 100 320
Income 21 16 19 18 20
Operating Expenses (199) (187) (186) (197) (212)
Operating Expenses (11) (11) (13) (11) (10)
Core Pre-Provision Income 161 165 128 128 128
Core Pre-Provision Income 10 7 3 8 10
Pre-Provision Income 430 210 137 903 108
Pre-Provision Income 10 5 6 7 10
Loan Impairment (425) (75) (75) (486) (107)
Loan Impairment (6) (3) (2) 0 (0)
Operating Profit 5 135 62 417 1
Operating Profit 3 2 5 7 10
Core Operating Profit² 96 93 63 58 21
Core Operating Profit 4 4 2 8 10
Other impairment (18) 3 (8) (12) 4
Other impairment (1) (0) 2 (2) 6
PBT (13) 138 55 405 5
PBT 3 2 7 6 16
Taxes - (2) (2) (1) (3)
Taxes (1) (1) (1) (3) 1
PAT (cont. ops) (13) 136 53 404 2
PAT (cont. ops) 2 1 5 2 17
PAT (discont. ops) (356) (20) 14 4 (508)
VES, restr. & other one-offs (58) (15) (11) (105) (80)
Minorities - - - - 1
PAT (427) 102 55 303 (586)
1 Numbers reflect NBG Egypt reclassification from HFS/ 2. COP calculations normalize for €0.4b of Covid-19 provisions and €0,4b of Frontier provisions
National Bank of Greece Corporate Presentation Apr21 Appendix 53Geographical segment P&L: Greece & Other International
Group Structure (material subsidiaries) Shareholder Structure1
Domestic institutional;
other ; 0.6%
6.6%
Domestic retail
9.4%
Hellenic
Financial
Stability
Fund; 40.4%
International
institutional
43.0%
Ethniki Hellenic General Insurance Company and
NBG Cyprus have been reclassified as non-current
assets held for sale
1. As at 31/3/2021
National Bank of Greece Corporate Presentation Apr21 Appendix 54ESMA Alternative Performance Measures (APMs), definition of financial data and ratios used The 4Q20 Financial Results Press Release contains financial information and measures as derived from the Group and the Bank financial statements for the year ended 31 December 2020 and for the year ended 31 December 2019, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as endorsed by the EU. Additionally, it contains financial data which is compiled as a normal part of our financial reporting and management information systems. For instance, financial items are categorized as foreign or domestic on the basis of the jurisdiction of organization of the individual Group entity whose separate financial statements record such items. Moreover, it contains references to certain measures which are not defined under IFRS, including ‘Core operating profit’ (COP), “Core pre-provision income” (“Core PPI”), “net interest margin” and others, as defined below. These measures are non-IFRS financial measures. A non-IFRS financial measure is a measure that measures historical or future financial performance, financial position or cash flows but which excludes or includes amounts that would not be so adjusted in the most comparable IFRS measure. The Group believes that the non-IFRS financial measures it presents allow a more meaningful analysis of the Group’s financial condition and results of operations. However, the non-IFRS financial measures presented are not a substitute for IFRS measures. National Bank of Greece Corporate Presentation Apr21 Appendix 55
Definition of financial data, ratios used and alternative performance measures
Name Abbreviation Definition
Assets held for sale -- Non-current assets held for sale
Balance Sheet B/S Statement of financial position
Cash & Reserves -- Cash and balances with central banks
Common Equity Tier 1 Ratio CET1 ratio CET1 capital as defined by Regulation No 575/2013, with the application of the regulatory transitional arrangements for IFRS 9 impact over RWAs
Common Equity Tier 1 Ratio Fully Loaded CET1 FL ratio CET1 capital as defined by Regulation No 575/2013, without the application of the regulatory transitional arrangements for IFRS 9 impact over RWAs
Core Income CI Net Interest Income (“NII”) + Net fee and commission income
Core income less operating expenses and loan impairments, excluding VES and restructuring costs, the termination of leases, other one off expenses & LEPETE, as well as Covid-
Core Operating Result / Profit / Profitability /
COP 19 provisions of €0.4b and Frontier provisions of €0.4b in FY20. COP excludes LEPETE charge of €37m & VES, restructuring and other one-off costs totaling €152m for FY20 and
(Loss)
LEPETE charge of €90m & VES, restructuring and other one off costs totaling €136m for FY19
Core Income less operating expenses, before loan impairments, excluding VES and restructuring costs, the termination of leases, other one off expenses & LEPETE. Core PPI
Core Pre-Provision Income Core PPI excludes LEPETE charge of €37m & VES, restructuring and other one-off costs totaling €152m for FY20 and LEPETE charge of €90m & VES, restructuring and other one off costs
totaling €136m for FY19
Core Pre-Provision Margin Core PPI Margin Core PPI annualized over average net loans
Cost of Risk CoR Loan impairments of the year (or of the period annualized) over average net loans
Cost-to-Core Income C:CI Operating expenses over core income
Debt securities -- Debt securities in issue plus other borrowed funds
Deposit Yields -- Annualized interest expense on deposits over deposit balances
Deposits -- Due to customers
Depreciation -- Depreciation and amortisation on investment property, property & equipment including right of use assets and software & other intangible assets
Fees / Net Fees -- Net fee and commission income
Forborne Exposures for which forbearance measures have been extended according to EBA ITS technical standards on Forbearance and Non-Performing Exposures
Exposures with forbearance measures that meet the criteria to be considered as non performing according to EBA ITS technical standards on Forbearance and Non-Performing
Forborne Non-Performing Exposures FNPEs
Exposures
Exposures with forbearance measures that do not meet the criteria to be considered as non performing according to EBA ITS technical standards on Forbearance and Non-
Forborne Performing Exposures FPEs
Performing Exposures and forborne exposures under probation period
Funding cost/Cost of funding - The weighted average cost of deposits, ECB refinancing, repo transactions, as well as covered bonds and securitization transactions
General and administrative expenses G&As General, administrative and other operating expenses
Loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost and Loans and advances to
Gross Loans/ Gross Book Value (GBV) --
customers mandatorily measured at FVTPL
Goodwill & Intangibles -- Goodwill, software and other intangible assets
Held-for-sale HFS Non-current assets held for sale
Interbank liabilities/placements -- Due to banks
Interest earning assets include all assets with interest earning potentials and includes cash and balances with central banks, due from banks, financial assets at fair value through
Interest earning assets IEAs
profit or loss (excluding Equity securities and mutual funds units), loans and advances to customers and investment securities (excluding equity securities and mutual funds units)
Lease liabilities Lease liabilities are presented separately and they are included in Other liabilities
Liabilities held for sale -- Liabilities associated with non-current assets held for sale
The LCR refers to the liquidity buffer of High Quality Liquid Assets (HQLAs) that a Financial Institution holds, in order to withstand net liquidity outflows over a 30 calendar-day
Liquidity Coverage Ratio LCR
stressed period, as per Regulation (EU) 2015/16
Loan Impairments -- Impairment charge for Expected Credit Loss (ECL)
Loan / Lending Yield Annualized (or annual) loan interest income over gross performing exposures
Loans-to-Deposits Ratio L:D ratio Loans and advances to customers over due to customers, at year end or period-end
Minorities Non-controlling interest
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