National Bank of Greece (ETE) Q1 2026 earnings summary

Executive summary

• Q1 2026 profit after tax reached €344 million, up 23% quarter-on-quarter, with ROTE at 16.3% reported, 15.3% normalized, and 20% adjusted for excess capital, validating full-year 2026 guidance.

• Balance sheet expansion continued, with performing loans up 12% year-on-year to €37.7 billion and disbursements up 47% year-on-year to €2.5 billion.

• Asset quality remained strong, with NPE ratio at 2.4% and coverage at 107%.

• Transformation program and digital innovation, including migration to a new core banking system, continue to drive operational efficiency and customer engagement.

• Signed MoU for a 10-year exclusive bancassurance partnership with Allianz, including a 30% minority stake in Allianz European Reliance, expected to boost fee income and ROTE.

Financial highlights

• Net interest income for Q1 2026 was €541 million, up 2% quarter-on-quarter, with net interest margin stabilizing.

• Fee income grew 8% year-on-year to €114 million, driven by retail and investment products; investment fees up 60% year-on-year.

• Operating expenses increased 8.4% year-on-year to €246 million, mainly due to personnel and technology investments.

• Cost-to-income ratio at 34% (35.7% normalized for trading income), reflecting strong cost discipline.

• CET1 ratio at 17.4% post-payout accrual; total capital ratio at 21.1%; MREL at 28.8%, all above requirements.

Outlook and guidance

• Full-year 2026 guidance reaffirmed, with ROTE expected around 15%, cost-to-income below 37%, and cost of risk below 40bps.

• NII expected to grow at low single digits for the year, with upside if rates remain favorable.

• Net expansion of over €3 billion in loans targeted for the year.

• Fee income growth guided at high single digits, with incremental upside from Allianz partnership in 2027-2028.

• Continued strong loan disbursements and resilient deposit base expected to support growth.