National Bank of Greece 4Q14 Earnings Call Notes

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.”

National Bank of Greece 2Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Greek recession ends

“in Q2 the economy exits recession recording the first positive sign, it’s up 0.5% Q-on-Q in seasonally adjusted terms and this marks the effective end of recession following 18 consecutive quarters of sharp contraction.”

Markets confirm recovery

“This abundance of positive evidence from the real economy indicating that the real economy is recovering and on track to meet its program target, is also confirmed by the markets. Indeed the Greek 10-year government bond spread over bonds is at four years low and Greek banks have successfully issued episode of corporate bonds.”

National Bank of Greece 1Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“we’re seeing clear signs of a return to profitability, as first quarter pre-provision earnings at €363 million, up plus 47% year-on-year were supported by the bottoming out of debt decline in NII in Greece and the absence of trading losses.”

“The 90-day past due ratio increased to 20%, 19.8% for the Group and 24.3% in Greece again by far the lowest among Greek peers both had a group as well as the parent level.”

“Regarding deposit flow Paul has made reference to that before that we see a steady of flow back deposits into NBG, we have had certain events that kind of nerved investors, nerved depositors in general even across Europe, looking at the developments in Cyprus, having gone through this period and after that seeing the positive spin that developments in Greece have taken and all the communications it’s coming out of the Eurogroup and all the rating upgrade et cetera. We see a positive tailwind in Greek confidence and we see these deposits, and we expect these deposits to continue to flow back into Greece in NBG particular, but that’s the, is a matter of sentiment which is a slowly and steadily improving and we hope that if we don’t hope for rapid development, because we don’t want this to be a very rapid we want to have a slow but constant sort of comeback.”

“Loan growth is clearly going to be associate with the recovery of GDP that’s expected in the end of this year on either side of 2013, and I believe that’s when you going to see loan growth.”