National Bank of Greece S.A

Ladies and gentlemen, thank you for standing by. I am your chorus call operator. Welcome and thank you for joining the National Bank of Greece conference call to present and discuss the full year 2025 financial year. At this time, I would like to turn the conference over to Mr. Pavlos Milonas, CEO of National Bank of Greece. Mr. Milonas, you may now proceed.

Good morning, everyone. Welcome to our fourth quarter financial results call. I'm joined by Christos Christopoulou, the group CFO, and Greg Papagioris, group head of IR. After my introductory remarks, Christos will go into more detail on our financial performance, and then we will turn to questions and answers. As usual, I will address Greece's macroeconomic developments first, then turn to our fourth quarter results, and I will conclude with guidance for the next three years, 2026. So let's begin. The Greek economy remains on a steady trajectory, notwithstanding the system's volatility intensifying geopolitical tensions, with the EU appearing particularly exposed to ongoing structural shifts. Within the challenging environment, Greece has delivered not only a resilient performance, but also a more balanced and higher quality growth pace. Indeed, the recovery has become more broad-based, with manufacturing, high-value-added services, and construction increasingly complementing tourism. The economy remains attracted to investment, and the loss of economic formation is projected to rise to 18% of GDP in 2025, the highest level since the onset of the global crisis. While foreign direct investment inflows also reach a direct high, S.A S.A S.A S.A. S.A. Approximately $12 billion of RRF funds is scheduled to be injected into the real economy over the next few quarters, while up to another $12 billion is passed from the remaining RRF funds. This influx is expected to lead to public investment to record levels. Four, ongoing revaluations in collateral values. The real estate price is currently 5% above the agreed price's peak in normal terms to support private sector spending as well as investments. It is important to note that despite the large increase in real estate values, they are still 15% off their pre-crisis peak in real terms, in contrast to European governments. All of the above catalysts are expected to enable the Greece economy to see solid growth, even in an inherently volatile international landscape. Growth that will be, for the most part, bag-financed. Now let me turn to our financial results. for your company five financial performance has showed significant strengths having exhibited impressive resilience to sharply lower benchmark interest rates which came down by almost 200 base points from there performance has been the result of the confluence of a positive macroeconomic environment our robust balance sheet characterized by superior capital and equity as well as our multi-year transformation with strong investment in human capital, technology, and digital services. Despite positive revisions to our guidance in July, especially in the area of credit growth and fee regeneration, we have outperformed the revised targets. Specifically, our full-year 0.25% profit after tax before 1-0 was 1.3 billion euros, resulting in a return on tangible equity of 15.5%. before just capital buffers. Return on tangible equity will be 20% on a normalized capital price of 14%. Turning to the main drivers of our results, resilience was reflected in the net interest margin remaining above 280 base points, around by less than 40 base points from its beginning. Benefiting from solid liability management and robust lending, It's important to note that net income proffered in the third quarter and is now on a steady upward trend. As regards credit expansion, our performance exposures grew by a noteworthy 3.5 billion euros per quarter on a year-on-year basis, far exceeding the upgraded guidance of greater than 2.5 billion. Corporate credit continues to be the main driver of long growth, up by 13% year-on-year. Grover corporate credit demand was diversified across a broad range of sectors, production, energy, transportation, shipping, accommodation, and light metal. A final point on the position of credit, encouragingly the retail sector offers solid growth according to small business lending of 16% year-on-year and consumer lending of 7%, resulting in noteworthy market share gains in both sectors. Thank you. also more had a close to you with a positive result on the net cases for the first time in 15 years. Following a strong where we hold a 28% market share. Turning to commissions, our fee business growth despite the impact of government measures. The most notable was a cross-sell of investment products to our large deposit base resulting in strong mutual fund market share gains six percentage points over the past two years. An impressive investment fee growth of 70% year-on-year. It is noteworthy that despite these flows, household deposits maintain their high market share. On the cost side, we have kept a balanced approach weighing efficiency as evidenced by a cost-to-income ratio of 34%, with judicious sector-lending investments in technology and people who can provide relative advantages going forward. The completion of the bank's full migration to the new cloud-based core banking system marks a defining milestone in our multi-year transformation and growth journey, providing a modern technological backbone that enhances our agility and productivity in elevating our customers' experience. Despite impressive credit growth and the highest payout accruals in the sector, our capital positions have been further throughout 2025, with a safety base point of 18.8% in-year. The safety percent payout equates to an ordinary distribution of €0.7 billion, implying a total payout per share of 77 cents. Of the €700 million ordinary distribution, S.A. S.A. economic conditions, our inherent competitive advantages, and our strong track record for transformation determination. The resulting guidance is to attain a return of central equity of 17% in 2028 and enhance our earnings share from the current €1.38 to over €1.70 in 2028. These achievements are based on a solid recovery in our profitability S.A. S.A. S.A. The few targets do not factor in any imminent developments in our bank assurance business. And to preempt your questions, I would like to ask you to have a bit more patience on what is happening on bank assurance. We are in the process of choosing a new partner and should have tangible news in a few weeks' time. Turning to operating costs, you will benefit from cash having been paid. And FPE rejuvenation through the implementation In fact, we are announcing a new DES in the next few days. As a result, the cost-income ratio will be 36% in 2028. And a final point, the cost of risk will continue to converge to European levels during the three-year period. The output of this quality remains denied. The 2026-2028 business plan also contains accelerated capital utilization while maintaining satisfactory capital resources. S.A I strongly believe that 2026 is a year of great opportunity for India. The successful execution of our strategy during the past several years has been the main reason for our outperformance. To describe all the achievements of the past years, even in summary, would take too long, so I urge you to look at the relevant pages of the presentation on our transformation. However, it is very important to understand that significant necessary conditions have now been met S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A S.A S.A

S.A. Our net interest income declined by 9% year-on-year, in line with our expectations and planning. Strong economic dynamics and our effective liability management initiatives, including depositages and emerald instruments financing, absorbed most of the negative inflation rates on our NII, sustaining a class-leading net interest margin of up to 180 basis points, in line with our plans. Most importantly, S.A. S.A. Our fee income remained on a solid roadmap, increasing by 10% year-on-year. This performance was taken by the corporate sector shown on slide 33. Our market share in neutral funds increased by 3.6 points year-on-year and 6.2 points over the past two years as we continued cross-selling fee generated in neutral funds, driving our total funds under management by 2.3 billion, 25% higher year-on-year to 9.3 billion. The lower top line operating expenses were 7.1% year-on-year and below on slide 34. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. S.A. Our total capital ratio stood at 21.5%, or 32.7% pro forma for our 8-1 issuance in 2016, while our MRL ratio stands well above our MRL target of 26.7%. Reflecting our capital strength and our confidence in the bank's outlook, we are also accruing the highest national yield in the sector, We intend to propose an additional capital distribution of 0.3 billion in 2026 in respect to regulatory approval in April 2020. This decision reaffirms our commitment to deliver class-leading shareholder returns while maintaining a tangible tonality for future growth opportunities. Now let me walk you through the highlights of our balance sheet summarized in slide 23. As referred to earlier, we grew our performing loan book by $3.5 billion a year on the back of approximately $8 billion in investments, allocating across multiple sectors, with a strategic emphasis on energy and renewables, tourism, shipping, manufacturing, and production as shown on slide 28. Adding to this, we continue to gain momentum throughout 2025, increasing by 3% or $0.8 billion a year on year. We experienced solid growth in small business and consumer lending at 16% and 7% respectively, with growth in net consumption gaining maximum share, while mortgages are also showing encouraging signs of growth. In the liability side, deposits remained on an upward trend in 2025, as shown on slide 29, increasing by 2 billion year-on-year on sustained inflows of low-cost retail core deposits, while time-deposit-migration-tributaries have continued, benefiting our total-emission cost. Improving deposit mix, with current deposits comprising 81% of the total stock, and the growth from 10-term-deposit issues at 2 basis points quarter-on-quarter to 124 basis points in Q4, drove our overall deposit growth below 30 basis points, the lowest in the domain. S.A. S.A. S.A. S.A. which causes comprising more than 90% of our total funding. Now a few words on our quality from slides from S.A. of Greece. Our current P.S.O.G. of 0.9 billion translating to an improving N.T. ratio of 0.4%, we then hit average exceeding 100%. At the same time, our leading average across stages by European studies comprises another strength of our balance sheet, providing a cushion during uncertain times. S.A. S.A. S.A. As already stated by Pavlos, we aspire to obtain a sustainable return on tangible equity of 17% in 2028, driven by higher profitability and high capital utilization, targeting an EPS of over €1.7 per share in 2028 versus €1.38 in 2035. This performance hinges on strong NII dynamics, a sophisticated diet, S.A. S.A. S.A S.A S.A S.A S.A S.A S.A S.A S.A S.A S.A. S.A. S.A. S.A. S.A. created from as well as part of our existing capital offers to consistently increase payouts using share payments as an additional shareholder remuneration tool. Our capital plan targets a set one ratio of below 16% in 2028, also preserving our strategic capability. Leveraging this solid performance and the strength and resilience of our business model The first question is from the line of David Roberts, Benjamin with Goldman Sachs International. Please go ahead.