National Bank of Greece records profits on high interest rates

National Bank of Greece (NBG) on Tuesday announced profits of 1.2 billion euros in 2023, driven mainly by interest rates. Net interest income jumped by 65% year-on-year.

According to the statement, the dynamics of net interest income was maintained in the fourth quarter of the previous year (+6% on a quarterly basis), which reflects the repricing of loans due to the increases in the key interest rate of the European Central Bank, absorbing the higher financing costs.

Consequently, net interest margins remained on an upward trajectory, increasing by 15 basis points quarter-on-quarter to 337 basis points.

A significant increase was also recorded in net revenues from commissions, which rose by 10% on an annual basis for 2023.

The increase in serviced loans amounted to €1.3 billion annually, to €30.5 billion at group level, mainly thanks to medium-sized enterprises, project financing and the shipping sector.