“Our aim is to increase the cash component of dividend distributions”, National Bank of Greece chief executive Pavlos Mylonas told analysts at a briefing earlier today.
The bank will distribute 60% of its earnings for the current financial year through a combination of cash and share buybacks.
A first step towards this goal is “the payment of an interim dividend of €0.26 per share in cash, up 18% on last year and the highest in the market”, the bank’s CFO, Christos Christodoulou, said.
NII is expected to continue rising in Q4, supported by the loan book and the lower cost of National Bank of Greece’s deposit base. There is no change to the guidance on targets, most of which have already been achieved.
Excess capital
According to Mr Mylonas, the bank’s capital position remains strong, with excess capital of 450 bps, or €2bn.
“Our aim is organic growth as well as inorganic growth, should attractive opportunities arise”, National Bank of Greece’s CEO said. The CET1 ratio stood at 17.5% in the first nine months, while RoTE was 20.7%.
Credit growth
The positive trend in credit growth in the first nine months indicates that National Bank of Greece’s target of disbursing more than €3bn over the year is more than achievable.
According to management executives, despite the slowdown in lending in the latest quarter and a slight increase in repayments, the pace of credit growth is expected to continue in Q4.
In the corporate segment, energy, shipping, tourism and infrastructure are driving credit growth. In retail banking, both mortgage and consumer lending are growing at a positive pace.