National Bank of Greece (ETE) Q4 2025 earnings summary

Executive summary

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

• Achieved robust credit growth with net performing exposures expanding by €3.5b, and performing loans at €37.0b.

• Fee income grew 10% year-over-year, driven by investment products, corporate segment, and treasury sales.

• Completed migration to a new cloud-based Core Banking System, advancing digital transformation and operational agility.

• Maintained robust capital and liquidity positions, with CET1 at 18.8% and total capital ratio at 21.5% (22.7% pro forma for AT1 issuance).

Financial highlights

• Net interest income for FY25 was €2,136m, down 9.3% year-over-year, but NIM remained above 280bps and stabilized in Q4.

• Fee income reached €469m, up 10% year-over-year, with strong growth in investment products and loan origination.

• Operating expenses rose 7.3% year-over-year, mainly due to investments in technology and human capital; cost-to-income ratio at 34.1%.

• Cost of risk settled at 40bps for the year, reflecting benign asset quality and sector-leading coverage.

• Loan impairments declined 15.1% year-over-year.

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 high single-digit fee growth.

• CET1 ratio targeted below 16% by 2028; cost-income ratio projected at 36%.

• Capital deployment to balance growth, shareholder returns, and strategic flexibility, with buybacks and additional capital distributions planned.