National Bank of Greece (NBG) reported its financial results for the first half of 2025, with group profit after tax holding steady at €0.7 billion compared to the same period last year. The bank’s net interest income declined by 9% year-over-year, which was expected due to a significant drop in market interest rates. However, increased loan growth and contributions from hedging strategies helped offset some of this impact.
Fee income saw notable gains, rising by 8% year-over-year overall and by 14% on a like-for-like basis. Growth was driven mainly by investment product cross-selling, card fees, and corporate lending fees. Operating expenses rose in line with guidance as NBG continued investing in new hires and digital infrastructure.
The cost-to-income ratio stood at 31%, or 33% when normalized for trading income. Asset quality remained stable with a cost of risk at 43 basis points and a non-performing exposure (NPE) ratio at 2.5%. Return on tangible equity reached 17.5%, or 16.3% when adjusted for trading gains—surpassing the initial full-year target.
Performing loans increased by approximately €1.5 billion since the start of the year, supported by strong activity in both retail and corporate segments. Deposits also grew by €1.2 billion over the past year as customers favored low-cost savings accounts.
NBG’s capital position remained robust with a Common Equity Tier 1 (CET1) ratio of 18.9% and total capital ratio at 21.7%. The bank also met its minimum requirement for own funds and eligible liabilities (MREL), reaching a ratio of 28.4%.
Ongoing transformation initiatives included process improvements in corporate banking, enhanced digital offerings such as upgraded business internet banking and mobile applications for younger customers, and new partnerships like the Uniko housing platform joint venture with Qualco.
On environmental, social, and governance (ESG) efforts, NBG issued its third green bond worth €750 million and continued supporting community programs including public school renovations.
Pavlos Mylonas, Chief Executive Officer of NBG, commented: “The Greek economy remains on a resilient growth trajectory amid global headwinds, with leading indicators suggesting continued growth momentum. Buoyant labor market supports household disposable income and consumption, while corporate activity remains strong. With fiscal and monetary conditions becoming more supportive and fixed capital investment set to gain traction in 2H25 and 2026, Greece is well-positioned to transition towards a more investment-driven and innovation-oriented growth model. Moreover, continued structural reforms, EU fund absorption, and an improving credit environment are expected to further bolster productivity and competitiveness.
Leveraging Greece’s favorable macroeconomic backdrop and our judicious ALM strategy, we delivered a strong performance in 1H25, allowing us to revise upward several KPIs of our FY25 guidance. Specifically, resilient income absorbed rate cuts, led by accelerating loan growth, particularly in business lending, and buoyant fee income. Thus our PAT remained at €0.7b., the same level as 1H24.,and RoTE stood at16 .3 % against the initial FY25 targetof >13 %, now revised up to>15 %. This strong first-half performance sets solid grounds for sustained value creation going forward .
Our class leading capital buffers –a distinct strength of the Bank– kept increasing on the back of strong profitability . CET1 settledat18 .9 %, upbyc60 bps since beginningoftheyear , providing strategic optionalityas regards organic reinvestment , capturing value-accretive opportunities as wellas enhancing capital returns . Inthis context , we intendto distributean interim dividend1in4 Q25 .
Looking into2 H25and beyond , weremain firmly committedto investingintechnologyand human capitalas key enablersof long-termgrowthand value creation , enhancingour digital capabilities,and deliveringan exceptional customer experiencethat meets theevolving needsof householdsand businesses . Witha strong balance sheetanda clear strategic vision,wearewell-positionedto deliver valueforour shareholders , while contributing meaningfullytothe country’seconomicand structural transformation.”
