National Bank of Greece Reports €996 Million Profit for First Nine Months of 2026

The National Bank of Greece (NBG) reported profits after tax of €996 million for the first nine months of 2026, supported by stronger lending income, increased fee generation and resilient economic activity. The results represent a return on tangible equity of 15.7%, exceeding the bank’s full-year target of more than 15%, while earnings per share reached €1.48, already above its 2026 guidance of €1.40.

The bank’s performance was driven by growth in net interest income and double-digit increases in fee and commission income. Net interest income rose by 5% year-on-year during the nine-month period, with growth accelerating in the third quarter. Quarterly net interest income increased by 6% compared with the second quarter, supported by higher benchmark interest rates, including a 28-basis-point increase in three-month Euribor, and continued lending expansion. The net interest margin widened by 15 basis points quarter-on-quarter to 288 basis points.

Lending activity remained strong, with loan disbursements reaching almost €8 billion during the first nine months, representing a 28% increase compared with the corresponding period of 2025. Performing loan balances expanded by €2.2 billion since the beginning of the year, mainly through large corporate and structured finance lending in the energy, infrastructure and shipping sectors. NBG expects performing loan growth to exceed €3 billion for the full year, supported by a substantial pipeline of approved corporate loans awaiting disbursement.

Deposits increased by 7% year-on-year, while core deposits rose by €3.9 billion, or 9%. The growth was primarily driven by low-cost transactional accounts held by households. The bank's funding cost remained below 70 basis points, which it identified as the lowest among Greek banks.

Fee and commission income increased by 10% during the first nine months, outperforming the bank's full-year guidance for high-single-digit growth. Investment products and asset management contributed to the increase, with assets under management across NBG's mutual funds rising by almost €2 billion since the beginning of the year. The bank also reported growth of more than 40% in its mutual fund business compared with the same period last year. Its strategic partnership with Allianz Greece is another element of its efforts to diversify revenue through insurance-related services.

Operating expenses increased by 8%, reflecting higher personnel costs, investment in employee development and expenditure on technology and customer-service improvements. Despite the increase, the cost-to-income ratio stood at 34.4%, which the bank described as among the lowest in Europe.

Asset quality remained stable. Loan impairment charges amounted to €117 million for the nine-month period, equivalent to a cost of risk of 38 basis points, compared with 41 basis points in the same period of 2025. Non-performing exposures represented 2.4% of total exposures, while the bank reported strong provision coverage.

NBG also maintained solid capital and liquidity positions. Its common equity tier one capital ratio stood at 17.5%, while the total capital ratio reached 21.2%. Its minimum requirement for own funds and eligible liabilities was 28.7%, above the regulatory requirement of 26.9% for 2026. The bank confirmed an interim dividend of €230 million, equivalent to approximately €0.26 per share and an 18% increase compared with 2025.

Technology and digital transformation remain central to NBG's strategy. The bank has completed the rollout of its cloud-based core banking system and introduced a unified loan origination platform covering corporate and consumer lending and credit cards, with mortgage lending being integrated. It is also expanding the use of artificial intelligence across its operations, including its digital banking chatbot and a voice-based AI agent introduced at its contact centre in July 2026. The bank aims for the voice-based system to handle more than half of contact-centre traffic within six months.

NBG's digital banking services have reached 4.7 million registered users and 3.3 million active users. The bank is continuing to develop its mobile and business banking platforms while using technology investments to improve operational efficiency, customer service and cybersecurity.

The bank also reported progress in its environmental and social initiatives. Corporate financing for renewable energy projects reached €2.6 billion, while retail lending for solar installations, electric and hybrid vehicles, energy-efficient properties and building renovations exceeded €500 million. NBG also received an AAA rating from MSCI, its highest possible assessment.

Chief executive Pavlos Mylonas attributed the results to the bank's business model, lending growth and continued execution of its strategic priorities. He also highlighted the resilience of the Greek economy, supported by investment activity, domestic demand and tourism, despite ongoing geopolitical uncertainty. Management expressed confidence in exceeding its upgraded full-year 2026 guidance for key performance indicators, including net interest income, cost-to-income ratio, earnings per share and return on tangible equity, with positive underlying income trends expected to continue into 2027.

NBG's performance is also relevant to the Cyprus banking market, where the group operates through its local subsidiary. Its strong capital position, expanding lending activity and continued investment in digital services provide the wider group with capacity to pursue growth while maintaining substantial shareholder distributions.

By fLEXI tEAM