Moody’s Ratings proceeded to confirm the credit rating of National Bank at Baa1, while at the same time changing the outlook for the bank’s long-term deposits to positive from stable.
For the senior unsecured debt rating at Baa1, the agency changed the outlook to stable from negative. The move follows the recent change in Greece’s outlook to positive from stable, with Moody’s maintaining the rating of the Greek State at Baa3.
At the same time, Moody’s confirmed National’s Baseline Credit Assessment (BCA) at baa3, highlighting strong recurring profitability, high capital adequacy, good asset quality and a strong liquidity profile.
National posted an annualized return on tangible equity (ROTE) of 15.5% in the first half of 2026, while core revenues increased by 3% year-on-year. Despite the 8% increase in operating expenses, the cost-to-income ratio stood at around 35%.
The capital position also remains strong, with the CET1 ratio at 17.3% in June 2026, significantly higher than the bank’s internal target of around 13%. However, Moody’s notes that capital quality continues to be affected by the stock of deferred tax credits (DTCs), which accounted for 38% of CET1, versus 46% a year earlier.
On the asset quality front, the NPE ratio remained low at 2.4%, with NPE coverage reaching 105%. The cost of credit risk declined to 38 basis points from 43 basis points in the first half of 2025.
The liquidity and funding profile is also described as strong, with the loans-to-deposits ratio at 67%, the liquidity coverage ratio (LCR) at 227% and the net stable funding ratio (NSFR) at 143%.
According to Moody’s, the positive outlook for National’s deposits is linked to the corresponding positive outlook for Greece. An upgrade of the bank could occur provided that the rating of the Greek State is upgraded and National maintains its strong profitability, capital adequacy and asset quality over the next 12-18 months.