Global Bank Equity Specialist, Creative Portfolios

Paul Hollingworth

Global Bank Equity Specialist

Creative Portfolios

Equity Bottom-Up

National Bank Of Greece Sa / Equity Bottom-Up

PH Score™   7.4While Greek Bank PH Scores™ are mostly somewhat downbeat, with C-19 curtailing temporarily years of progression at banks and in the economy in general, National Bank of Greece stands out.ETE balances consumer (43.5% of Loans) and corporate credit (56.5%) provision, backed by CASA funding (78% of Deposits)- mainly from Savings. The bank is in its third year of a transformation plan which is beginning to show tangible operational improvement while e-banking is performing well. Asset Quality ratios continue to make great strides while less than 7% of moratoria beneficiaries are in early arrears (&gt;30dpd). On the capital front, ETE has enhanced its capital position, delivering CET1 and Total CAD ratios of 16.1% and 17.1% respectively, up by some 40bps q-o-q. The latter is expected to improve further by some 170bps upon the completion of the Frontier and Ethniki Insurance transactions, expected in the next few months.The PH Score™ of ETE is favorable given amelioration in Profitability, in Efficiency, in Liquidity, and in Asset Quality. There was though some NIM/Spread compression, softer Provisioning, and erosion in the model’s Capitalisation variable though we note that other Capital Ratios are improving.<div class="content-highlight">A FV of 5%, a PBV of 0.44x, and an Earnings Yield of 12.45% are not unattractive. The bank commands strong fundamental momentum given the high PH Score™.</div>

PH Score™   7.4While Greek Bank PH Scores™ are mostly somewhat downbeat, with C-19 curtailing temporarily years of progression at banks and in the economy in general, National Bank of Greece stands out.ETE balances consumer (43.5% of Loans) and corporate credit (56.5%) provision, backed by CASA funding (78% of Deposits)- mainly from Savings. The bank is in its third year of a transformation plan which is beginning to show tangible operational improvement while e-banking is performing well. Asset Quality ratios continue to make great strides while less than 7% of moratoria beneficiaries are in early arrears (&gt;30dpd). On the capital front, ETE has enhanced its capital position, delivering CET1 and Total CAD ratios of 16.1% and 17.1% respectively, up by some 40bps q-o-q. The latter is expected to improve further by some 170bps upon the completion of the Frontier and Ethniki Insurance transactions, expected in the next few months.The PH Score™ of ETE is favorable given amelioration in Profitability, in Efficiency, in Liquidity, and in Asset Quality. There was though some NIM/Spread compression, softer Provisioning, and erosion in the model’s Capitalisation variable though we note that other Capital Ratios are improving.A FV of 5%, a PBV of 0.44x, and an Earnings Yield of 12.45% are not unattractive. The bank commands strong fundamental momentum given the high PH Score™.

National Bank Of Greece Sa

ETE: A Standout in Greece