National Bank of Greece 4Q14 Earnings Call Notes

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Liquidity conditions tight

“Liquidity conditions tightened further in Q1 ’15 due to the continuation of uncertainty and they should very well lift up. At the same time our domestic deposit outflows peaked in January minus €2.7 billion but have been subsiding ever since dropping practically to zero levels in March. So in total 6.2 billion has been lost in the five month period from October to February, this is the lowest amongst our peers, both in absolute terms and as a percentage of September domestic deposits. Current LD ratios are 102% for the Group and 93% domestic.”

Asset quality has deteriorated some recently

“Unsurprisingly the asset quality run rate has picked up in the first quarter of 2015 compared to the what Nikos described in Q4 which was a continued improvements throughout the year quarter-to-quarter that clearly reflects the uncertainty and perhaps increase more hazard in Q1. It only saving grace is the latest weekly data shows perhaps a slowdown in that change in direction. So until the uncertainty is resolved, I don’t think we’ll get a clear picture of where this is going.”