According to the Bank's official press release, there was observed a sustained NII momentum, up by +6% qoq, reflecting continuing loan repricing following ECB’s base rate hikes, offsetting slightly higher funding costs; As a result, NIM continued to rise, up by +15bps qoq to 337bps in 4Q23.
Fee income picked up sharply, at +15% qoq and +10% yoy for FY23, on the back of solid growth across segments, led by business lending, trade finance and increased cross selling of investment and insurance products; excluding the merchant acquiring deconsolidation, FY23 fees were up by +17% yoy.
Discipline on operating expenses continued, with FY23 personnel and G&A expense growth well below
inflation (+c2% yoy), despite collectively agreed wage increases and variable pay; higher depreciation
charges reflect the roll out of our strategic IT CapEx plan, spearheaded by the replacement of our Core
Banking System (CBS); FY23 C:CI at 31.6%
o FY23 CoR at 64bps1
, well inside our c80bps guidance, reflecting low NPE formation.
The Bank's CEO Mr.Pavlos Mylonas commented on the results.
“Economic activity in Greece remained on a healthy upward trend in 2023,
despite the unfavorable external economic environment and tight monetary
conditions. Strong policy credibility, a competitive economy - -attracting
sizeable domestic and foreign investments- - and α business cycle still in its
maturing phase, support Greece’s superior growth path. Moreover, the return
to investment grade has led to improving financial conditions and higher asset
valuations.
The recent positive developments that have taken place in the country
foreshadowed the success of the placement of 22% of our share capital by
the HFSF in November, but also is an acknowledgement by our shareholders
of our credibility, attained through consistent and precise execution, through
our Transformation Program, of a series of ambitious business plans over the
past five years.
Indeed, we delivered an impressive performance for 2023, leveraging Greece’s growth momentum, the distinct
strengths of our balance sheet and our successful digital and operational transformation. Specifically, our FY23 core
PAT reached €1.2b, yielding a core RoTE of >18%, outperforming comfortably our FY23 guidance. The overperformance
was evident in all lines of the P/L. Regarding loan growth, loan disbursements exceeded €7.5b at the Group level,
resulting in a healthy performing loan expansion of €1.3b, despite significant repayments in 2023.
Our strong profitability further enhanced our capital buffers, providing us with significant strategic flexibility going
forward. Our CET1 ratio increased by a notable +c220bps yoy (post dividend provision), to a sector leading 17.8%, with
the total capital ratio reaching 20.2%, up by +c350bps yoy.
Growth catalysts and reforms bolster growth prospects for 2024 and beyond, and the Bank remains focused on
supporting the economy’s continued strong growth. Our strategy leverages (i) our investment in technology - -so as to
rapidly distinguish ourselves for our agile and expeditious operations and superior customer experience- - and (ii) our
people, who continue to earn the trust of our clients by providing service excellence, thus, being acknowledged as the
Bank of First Choice.”
