National Bank of Greece (NBG), the country's second-largest lender, reported a relatively stable net profit for 2023 despite a decline in trading income.
The bank's net earnings reached €1.11 billion ($1.21 billion), slightly lower than the €1.2 billion reported in 2022. However, CEO Pavlos Mylonas highlighted the "impressive performance" in a statement, attributing it to Greece's economic growth, the bank's strong financial health, and successful digital transformation.
A key driver of NBG's performance was a significant increase in net interest income. This metric, reflecting the difference between interest earned on loans and interest paid on deposits, surged by 65% to €2.26 billion. This rise can be attributed to stronger margins due to the European Central Bank's recent interest rate hikes.
There were also positive developments in NBG's loan portfolio. The bank's non-performing loans ratio, a measure of potentially problematic debt, improved significantly. It dropped to 3.7% at the end of 2023, down from 5.2% a year earlier.
However, NBG did experience a setback in its trading income, which plummeted by 73% to €93 million.
Overall, National Bank of Greece navigated 2023 with stability, showcasing growth in key areas despite a decline in trading income.
