NBG Group: Q3.15 results highlights 

CET1 ratio stable qoq despite protracted bank holiday and capital controls hitting top line in Greece

• CET 1 stood at 9.6% in Q3, unchanged qoq
• Turkish Lira depreciation impact was offset by €2.2bn RWAs reduction (including domestic deleveraging) and DTA of €0.5bn (relating to the increase of the corporate tax rate)
• Following the announcement of intention to sell 100% of Finansbank, the associated goodwill of €1.05bn was partially impaired (€0.65bn) – no impact on regulatory capital

Sector-best 90dpd coverage of 73% in Greece; 72% at Group level

• Domestic 90dpd formation at €766m in July, as a direct result of the bank holiday; Rapid reversal in August and September (net reduction of 90dpd of €360m)
• 90dpd ratio in Greece increased to 33.8% from 32.1% in Q2, affected also by deleveraging (60bps);
• Group NPE coverage remained flat qoq at 53% in Q3

 Early signs of deposit recovery in Greece; Best-in-class domestic L:D of 94%

• Q3 deposit inflows of €345m in Greece after cumulative outflows of €10.6bn in the past three quarters
• Eurosystem funding dropped by €2bn at the end of Q3; Excess collateral at €8bn
• Deposit growth of 1.0% qoq in Greece and 10.8% qoq in Turkey in TL terms

 Top line temporarily reduced due to capital controls

• Group core pre-provision income at €345m, impacted by lower banking activity due to capital controls and FX in Q3
• Domestic NII rebounded to €389m in Q3 (+2.6% qoq) on lower deposit costs
• Group operating expenses at €525m (-3.0% qoq); Personnel expenses down by 2.3% qoq in Greece
• Post-AQR CoR still high in Greece at 271bps due to increased formation relating to capital controls
• Gross loan balance up 5.0% qoq in Turkey on a constant exchange rate basis

Source: National Bank of Greece (NBG)

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