Despite the marginal drop, the bank’s management remains confident about its financial strength and growth prospects. Chief Executive Officer Pavlos Mylonas announced that the bank plans to increase dividend payouts to more than 60 percent of annual profits in 2025, subject to regulatory approval. He also revealed that NBG intends to distribute an interim cash dividend equal to one-third of its annual profits in the fourth quarter of next year.
The bank’s performance in the first half was supported by strong lending activity, with loan disbursements totaling €4 billion, including €2.4 billion in the second quarter alone. The increase in corporate lending, coupled with a sharp rise in fee income, helped absorb the negative impact of declining interest rates. Fee income grew by 14 percent year-on-year in the first half of 2025, driven by both retail and corporate banking. Investment product commissions surged by 66 percent, card fees increased by 11 percent, and corporate finance-related fees rose by 37 percent.
Mylonas highlighted that NBG’s strong capital base is a key competitive advantage. The bank’s Common Equity Tier 1 (CET1) ratio reached 18.9 percent, providing what he described as “unique strategic flexibility” to pursue both organic and inorganic growth opportunities while delivering returns to shareholders. He noted that the bank’s surplus capital, which exceeds 4 percent above the regulatory minimum, will be strategically deployed through lending expansion, potential acquisitions, and higher dividends.
Organic growth will be fueled by the recovery of previously non-performing loans (reperforming loans) and syndicated lending, while non-organic growth opportunities are under consideration as part of the bank’s ongoing transformation. “We have shown patience over time and will not undertake anything that would dilute shareholder value,” Mylonas emphasized.
The bank’s net interest income fell by 9 percent year-on-year due to the steep drop in interest rates, but this was offset by revenue resilience. Performing loans increased by €1.2 billion in the second quarter, bringing the total increase since the start of the year to €1.5 billion. Additionally, income from hedging customer deposits and the gradual repricing of time deposits provided further support to earnings.
