P. Mylonas: There is flexibility to exploit investment opportunities

LAST UPDATE: 12.20

By Leonidas Stergiou

The resilience of the Greek economy and the fact that it will continue to grow at a rate of 4% in 2022, despite adverse international conditions, emphasized the Chairman of the Board of Directors of the National Bank Gikas Hardouvelis, speaking during today’s regular General Assembly of the bank’s shareholders which is already underway. Mr. Hardouvelis warned of significant risks in 2023 if the war in Ukraine continues and inflation as central banks tighten monetary policy will limit the growth outlook.

Referring to NGE, Mr. Hardouvelis underlined the strong capital base, without capital increase and hive down, the vanguard of Ethniki in technology, human resources and internal structures and corporate governance. As he noted, National Bank is improving the quality of services due to competition from fintecs.

The CEO of National Bank Pavlos Mylonas, he mainly referred to the achievements made by the bank in the last year and underlined the strategic possibilities that are now opening up for the National Bank, having on the one hand the strongest capital base in the market and on the other hand having completed the commitments and any restrictions arising for it, from the European restructuring program. There is, he said, strategic flexibility to take advantage of investment opportunities if and when they present themselves.

In the fifteen years that have passed, the Greek economy and the National Bank have been tested hard but have stood firm, pointed out the Chairman of the Board of Directors. Gikas Hardouvelis. Thus, he added, demonstrating dedication to its goals and with the correctness of its choices in crisis management, the National Bank is today strengthening itself operationally, investing in its technology and human resources and preparing to once again become the bank of first choice in Greece. The National Team is at a new starting point for tomorrow.

Referring in particular to the high goals achieved by National Bank, Mr. Pavlos Mylonas emphasized, among other things:

First, the impressive reduction of “red loans”. After more than 10 years, the ratio of Non-Performing Exposures was below 10%, namely 7%, rapidly converging towards the average of European banks. Of course, Mr. Mylonas did not fail to point out that the challenge for the economy in this area is no longer how the banks manage them, but how the management companies will succeed in reintegrating the nearly 50 billion euros of assets that are managed. For this purpose, National Bank established a new team within the bank, with the exclusive aim of financing the assets, which the administrators of the red loans will sell to new investors. It thus hopes to actively contribute to their reintegration into the healthy economy.

Secondly, moving to healthy loans, in 2021 the National Bank supported businesses and households with 1.4 billion euros of new loans, net, after repayments, which is a success and an important contribution to the development of the Greek economy. Through the first quarter of 2022, the bank increased its share of new retail loan disbursements by 5 percentage points.

Thirdly, the bank proceeded with a spectacular upgrade of its digital services, offering other transaction speeds, great facilities for its small and large customers and another, much wider range of banking products and services.

Fourth, the National Bank succeeded in raising its capital adequacy ratio to 15% (after IFRS 9). In other words, it has the largest capital adequacy ratio in the market, by a wide margin, without even resorting to a capital increase. This fact opens the discussion for a dividend distribution, for the year 2022.

Fifth, the Group’s adjusted profit from continuing operations, after tax, amounted in 2021 to 834 million euros. Organic operating profits in particular increased by 40% year-on-year and reached 450 million euros, surpassing the target set for this year. Finally, Mr. Mylonas underlined that Ethniki enters into and looks forward to future strategic partnerships with fintech, and not only, companies, so as to achieve synergies and benefit from complex and innovative services, important for customers.