National Bank of Greece (ETE) Q4 2025 earnings summary

Executive summary

• FY25 delivered strong results with net profit after tax at €1.3b, EPS at €1.38, and ROTE at 15.5%, surpassing guidance and enabling a 60% payout plus a proposed €0.3b additional distribution in 2026.

• Robust credit growth with net performing exposures expanding by €3.5b, supported by a resilient Greek economy, record FDI, and strong private sector balance sheets.

• Transformation initiatives advanced, including migration to a cloud-based core banking system, digitalization, and ESG commitments.

Financial highlights

• Net interest income for FY25 was €2,136m, down 9.3% year-over-year, but stabilized in Q4; fee income grew 10% year-over-year, driven by investment products and loan origination.

• Operating expenses increased by 7.3% year-over-year due to investments in talent and technology; cost-to-income ratio improved to 34.1%.

• Loan impairments declined 15.1% year-over-year, with cost of risk at 40bps.

• CET1 ratio increased by 50bps to 18.8%, supporting high capital returns and strategic flexibility.

• Total capital ratio at 21.5% (22.7% pro forma for AT1 issuance); MREL ratio at 29.2%, above requirements.

Outlook and guidance

• Business plan targets ROTE of 17% and EPS above €1.70 by 2028, with NII CAGR of ~7% and fee growth CAGR of ~6%.

• Credit expansion projected to exceed €10b over the next three years, with loan growth and fee income supported by digital transformation and product innovation.

• CET1 ratio targeted below 16% by 2028, supporting higher shareholder returns.

• Cost-income ratio projected at 36% in 2028; operating expenses to grow ~6% CAGR.

• Ordinary payout ratios to remain high, with additional capital distributions and buybacks planned.