National Bank on Thursday announced after tax earnings from continuing operations of 53 million euros in 2016, from losses of 2.5 billion euros in 2015 and said that its after tax earnings in Greece totaled 17 million euros from a loss of 2.5 billion euros in 2015.
NBG CEO Leonidas Fragkiadakis, commenting on the results, said:
“In a difficult operating environment, NBG has managed to deliver strong results on all key aspects of the business, reducing NPEs, improving the liquidity profile, boosting capital adequacy, and returning to positive profitability.
On the asset quality front, the Bank has managed to maintain a solid pace of NPE reduction throughout the year, reducing the stock by 2.8 billion euros. This result is above the 2016 target by 0.5 billion. As a result, NBG is the bank with the lowest NPE ratio in Greece, the highest cash coverage and a solid track record in reducing NPEs.
On the liquidity side of the business, NBG has disengaged completely from State guarantees on senior debt pledged to the ELA, reducing ELA exposure by 6 billion euros despite repaying CoCos of 2 billion at the end of the year. As a result, ELA exposure has been contained to less than 6 billion euros, placing NBG in a position of having ELA elimination as a realistic target.
As regards capital, NBG enhanced CET1 by 750 bps through the successful conclusion of the sales of Finansbank, Astir Palace and the NBGI private equity funds, thus receiving the regulator’s approval to repay 2 billion euros of capital in the form of CoCos at the end of last year. The successful completion of the remaining divestments, either agreed or in the pipeline, should boost capital ratios further.
On the profitability front, Group PAT from continuing operations turned positive against losses of 2.5 billion euros in 2015, with similar results and trends at the core operating level.
In 2017, the economic environment should continue to improve. Our strategic priorities entail further NPE reduction in line with SSM targets, substantial ELA reduction to pave the way for its elimination in early 2018, enhancement of our capital through additional transactions as per the restructuring plan and the maintenance of positive momentum in domestic organic profitability, including through an acceleration in disbursements to Greek corporates.”