The curator considers it premature distribution of dividends from 2022 profit for Greek banks, due to high uncertainty in the broader economic environment. On the contrary, the prospects for the distribution of dividends from current profit, i.e. 2024 are positive, as can be seen from the ongoing dialogue with the management of Greek banks.

This message was conveyed in his statements by the managing director of the National Bank Group Pavlos Mylonasnoting that management intends to offer a dividend distribution of 20-30% of organic revenue for the next financial year, which is significantly higher than was planned for the previous year.

The bank will use the reserve it has already built up by capitalizing on the previous year’s earnings, further bolstering its capital buffers with strong profitability that it will record in 2023 as seen in the first quarter results. At the group level, post-tax net income was €278 million compared to €208 million in the first quarter of 2022, with post-tax organic profit reaching €228 million compared to €88 million in the corresponding period last year. Key drivers of these results were a strong 73% increase in net interest income to €497m, while operating expenses and credit risk costs remained relatively low.

Servicing loans in Greece grew by 8% year on year and reached 27.6 billion euros.

In the context of informing investors about the results of the first quarter, Ethniki management noted that “the rapid recovery of economic indicators lays a solid foundation for upgrading Greece’s credit rating to investment grade”, while, according to management, a key factor in its success USE its strong capital position and excess liquidity remain.” As the group’s chief financial officer explained Christ Christodoulou, the bank has excess capital, which allows it to consider other options. On this basis, and in the context of making the best use of its funds to achieve the objectives set by the management, it is exploring, in consultation with the supervisory authorities, what has been said, “investment opportunities in sectors outside of Greece”.

It should be noted that capital formation remained high as a result of high organic profitability, a strengthening core capital ratio (CET1 Florida) by about 90 basis points quarterly and, in particular, by 16.5% in the first quarter of 2023. MREL the group’s share was 21.8% with a January 2024 minimum MREL requirement of 22.7% and management will consider exiting the markets during the year depending on market conditions.

Non-performing loans in Greece rose by 8% year on year to €27.6 billion in the first quarter of 2023, almost unchanged from the end of 2022, including higher working capital payments from highly liquid companies. After a strong fourth quarter 2022, payouts totaled €1.2bn in the first quarter of 2023, up 13% from last year, reflecting corporate bank payouts that were up 21% year-on-year. At the same time, organic fluxes were equal to zero red loans, with no “overt signs of worsening early offenses,” according to management. In Greece, the non-performing loan ratio remained unchanged quarter-on-quarter at 5.1%, while the accumulated reserves coverage ratio was around 89%.

Strong liquidity from €54.8bn of deposits allows the bank to support further credit expansion with new funding, with the aim being to fully repay the remaining €5bn of liquidity to the Eurosystem by the end of the year.