National Bank of Greece S.A. and its subsidiaries provide a wide range of financial services, including mainly retail, corporate and investment banking, nonperforming management and specialized asset solutions, transactional banking, leasing, factoring, brokerage, asset management, real estate management and insurance related services.
The company operates mainly in Greece but also abroad through its branch in Cyprus and its subsidiaries in North Macedonia, Cyprus, Romania, Bulgaria, Luxembourg...
National Bank of Greece S.A. and its subsidiaries provide a wide range of financial services, including mainly retail, corporate and investment banking, nonperforming management and specialized asset solutions, transactional banking, leasing, factoring, brokerage, asset management, real estate management and insurance related services.
The company operates mainly in Greece but also abroad through its branch in Cyprus and its subsidiaries in North Macedonia, Cyprus, Romania, Bulgaria, Luxembourg, the Netherland, and the U.K.
The company is one of the four systemic banks in Greece and one of the largest financial institutions in Greece by market capitalization, holding a significant position in Greece's financial services sector.
Strategic Priorities
The company's strategic priorities are to deepen customer relationships, addressing their needs across channels and expanding its offering through strategic partnerships; enhance all aspects of its technological infrastructure and core processes; capture emerging opportunities in the ecosystem of servicers and investors; and address climate-related and environmental risks, while capturing opportunities from the transition of households and businesses.
Strategic Partnership of NBG with Epsilon Net S.A.
On 16 November 2022, the bank announced the signing of memoranda of understanding ('MoU') of a strategic cooperation agreement and the acquisition of a minority interest of 7.5% in Epsilon Net S.A., as well as the possibility of acquiring a further 7.5% three years after the completion of the initial transaction. The respective MoU was performed in the context of the bank's strategy to expand its operations through partnerships in the fintech space.
Activities in Greece
The bank has branches, including Retail i-bank Tellerless, Transaction Offices and Branch Annex). Furthermore, the bank, through ATMs(onsite and offsite), offered an extensive network covering - even in the most remote areas of the country. Activities in Greece include the bank's domestic operations, Ethniki Leasing S.A (Ethniki Leasing) and Ethniki Factors S.A. (Ethniki Factors).
Retail Banking
Strategic Areas
The key strategic areas include the exploitation of market opportunities, as well as the bank's untapped existing customer base potential for the promotion of lending and fee-generating products & services, through a revamped customer-centric growth model; restructuring, rationalization, mobilization and service excellence of the bank's extensive, nationwide branch network; delivery of new and innovative products & services, as well as redesigning existing ones, to meet dynamic customer demand; and leverage of technology to expand the bank's digital offering as a means for providing enriched services to customers, enabling further the migration of transactions to digital channels, and providing an engine for robust future growth.
Customer-centric Service Model: The customer-centric service model aiming to strengthen customer's relationship with the bank, through increased customer penetration, services usage and dedicated relationship managers for specific high-value segments. Organizational business needs are supported by a staffing model that is yearly redefined through continuous education on customer experience and integrity selling. Tellerless type of branches were also introduced during 2022.
Mortgage Lending: the adoption of various strategic / tactical actions led to increased disbursements, achieving Bank's targeted market share. More specifically:
Increased simplification of the end-to-end mortgage loan disbursement processes, through centralization and automation.
Optimized the 'mortgage loan application' through internet banking contributed to the further reduction of Branch Network workload.
Adopted a competitive pricing of variable rates products, while adding mixed interest rate options for the funding of Bank's owned residential properties.
Enhanced sales further through existing and new partnerships with main market brokers, providing new competitive features.
Consumer Lending: The bank continued granting loans of the co funded 'EXOIKONOMO-AUTONOMO' program, regarding energy efficiency and residence autonomy improvement, with 100% subsidy of interest rate and zero fees.
Moreover, the bank achieved new partnerships with market leading retailers, capturing new marketplaces while grew existing key partnerships. Finally, through coordinated actions, it improved its overall positioning regarding car financing through dealers/ third parties, focusing also on used vehicles.
Small Business Lending: In 2022, the bank significantly increased its disbursements and market share mainly due to the design and implementation of a Small Business value-proposition, which offers new products, while maintains its customer-centric approach, supporting small businesses in these challenging economic times.
Thus, the bank continued its active participation and cooperation with State and European programs, providing products through the European Investment Fund ('EIF') and the Hellenic Development Bank ('HDB'). At the same time, it managed to offer a more preferential pricing for green energy investment projects, competitive in market respect, either through special products, such as programs through European Investment Bank ('EIB') or through Bank's own funds.
Moreover, in order to further strengthen disbursements on business loans, the bank actively started cooperation with third party companies, such as accounting offices, consultancy firms, and other.
Cards (Issuing & Acquiring): The bank, in its endeavor to upgrade its products and achieve its strategic goal for increasing the credit cards' portfolio, launched three new credit cards: silver, gold, black, adding new, attractive features, such as concierge service, a wide range of insurance benefits, free FX, etc. In addition, cards' plastics were redesigned in vertical orientation and aesthetically improved. Inclusion of the entire card's portfolio in digital wallets has been completed. The bank utilized all its resources, in order to alternate its processes for card acquisition, so that they become simpler and more customer friendly. Courier service is activated for sending and collecting client documents, as well as an application was launched for remote documents signing (e-signature). The bank entered into a new strategic agreement with Mastercard targeting the further growth of NBG cards portfolio. Completion of the acquiring business carve out via the company's strategic partnership with EVO Payments and the formation of NBG Pay S.M.S.A.
Investments: The bank:
Launched and continuously enhanced new and innovative products and services, namely:
Structured Investment Product 'New Generation': initially launched with partial capital guarantee and further enhanced to offer full capital guarantee plus minimum guaranteed return at maturity.
Fixed-term Mutual Fund 'Delos Extra Income' with attractive annual dividend and return prospect at maturity.
Boosted investment fee revenue through the introduction of a tiered entry-fee pricing scheme.
Enhanced investments on digital offering, enabling acquisition of selective investment products via internet banking.
Launched an 'end-to-end investment journey' reengineering initiative within the context of the bank's Transformation program, which has already yielded significant results.
Deposits: The bank:
Expanded fund transfers digital capability whilst deploying know-your-customer ('KYC') controls.
Increased deposit and intermediation fee revenues through re-pricing of specific products and services, such as deposit bundles and transfer of funds.
Premium Banking: The bank:
Improved premium banking service delivery by (i) designing and implementing clientele segmentation in a way to provide discrete service model and value proposition for each sub-segment, (ii) establishing scheduled appointments as the leading offer of premium banking service and (iii) conducting customer surveys;
Boosted investment product sales by designing and implementing: (i) innovative investment products with partial capital guarantee adapted to premium banking customers, (ii) focused training workshops and pilot training programs enhancing premium banking RMs and (iii) investment training tool in order to allow premium banking RMs to familiarize with the available options for each investment profile and develop an integrated investment plan for the premium banking customers.
Mass segment: The bank:
Successfully implemented the annual informational and promotional campaigns plan, that aimed at communicating to customers at the right time, via all available channels, the appropriate offer of high fee generating products,
Strengthened the cybersecurity strategy by improving the technical infrastructure, developing new card and account protection functionalities, and implementing information and education campaigns, aiming at maintaining the balance between customer experience and the transaction security.
Digital Business: In 2022, the bank strengthened its digital offering to its business customers with new solutions and functionalities; the bank expanded online repayment to a wide range of lending products and set instant notifications service. In addition, FX transfers and request for remittances' fate or amendment were made available via internet banking for all Bank customers. Furthermore, the bank enabled contactless payments via mobile with Google Pay and Apple Pay (expanded functionality for credit cards), and boosted sales by adding new products to its digital portfolio of products: new credit cards, Money Box savings tool, New Generation investment and the increase of the Express personal loan credit limit to €6 thousands.
Finally, the Retail Banking Division through its independent Segment Risk & Control Sector, continued addressing the following actions across the whole Retail Banking Function:
Enhancement of the Internal Control System.
Alignment of its activities with those of the Risk and Control Functions, as well as Group Internal Audit.
Achievement of a high degree of readiness & compliance against all regulatory obligations, as well as increased risk and control awareness.
Corporate and Investment Banking
Strategic Areas
The bank offers corporate clients a wide range of products and services, including financial and investment advisory services, deposit accounts, loans denominated in euro and other currencies, foreign exchange services, standby letters of credit and financial guarantees, insurance products, custody arrangements and trade finance services.
Corporate banking includes the following divisions:
Large corporate: Large Corporate portfolio is being handled by two separate divisions with distinctly separate structure and clientele. One division deals with large groups and companies with €200 million annual turnover and above (on a consolidated basis). The other division focuses on mid-capitalization companies (with €50 million to €200 million annual turnover) and other specialized categories (such as intragroups, Greek state related entities etc.).
Structured Financing: Following its structural reorganization over the past years, the Structured Financing business is now a core growth arm of the CIB. It focuses on originating, managing and executing wholesale, event-driven primarily, financings across four pillars: Energy Project Finance, Real Estate Finance, Concessions Project, Finance & Advisory Leveraged Acquisition, and Finance. Transactions are mostly executed on a non-recourse basis, either in bilateral or syndicated format, mobilizing the team's in-house placement capabilities, as required. Beyond customary support of local sponsors, Structured Financing is particularly focused on facilitating foreign direct investment of international sponsors in Greece across the aforementioned financial sectors.
Medium-Sized Businesses ('SMEs'): This part of CIB's portfolio (including businesses with annual turnover between €2.5 million and €50 million, or Small Business with total exposure to the bank exceeding €1 million, or initially originated from the SME Division), was broadly affected by the ongoing pandemic and is in need of proper support. The timely and targeted actions of the Division are expected to assist the company's customers in weathering this new financial challenge and keep the company's focus in tapping the potential of the Greek economy.
In this deteriorated financial environment, the bank's long-term strategy to ensure a steady flow of liquidity to businesses that continue to invest in competitiveness and innovation, while promoting extroversion is considered paramount in the Business Plan's agenda. At the same time, the bank participated in several favorable business financing programs in cooperation with European organizations, such as the EIB and the EIF.
Shipping Finance: Greece is one of the world's largest ship owning nations with a long-standing tradition in shipping. Shipping has been one of the most important sectors of the Greek economy with the bank being one of the key participants (including local and international Banks) in Greek shipping finance, the activities of which are carried out almost exclusively through its dedicated Piraeus based unit.
The bank has traditionally provided long-term financing, mainly to shipping companies trading in the dry bulk and wet bulk sectors and, to a lesser extent to liner and ferry businesses, with a consistent view to minimizing risk and enhancing the portfolio's profitability.
NPE Management (Legacy Portfolio) & Specialized Asset Solutions
Strategic Areas
NPE Management (Retail Collection Unit & Special Assets Unit)
The bank under the Trouble Asset Unit ('TAU') has established two dedicated and independent internal units, one responsible for the management of the bank's retail loans (the Retail Collection Unit ('RCU')) and the other for the bank's corporate delinquent exposures (the Special Assets Unit ('SAU')). The two units have the end-to-end responsibility for their respective troubled asset exposures.
In 2022, the bank established the Specialized Asset Solutions Unit (see section below 'Specialized Asset Solutions') responsible for the end to end coverage of the respective market, by offering a full spectrum of financing solutions (i.e., portfolio acquisition, REOCo financing, Real Estate financing to end buyers) to the ecosystem of NPE's servicers and investment funds.
Specialized Asset Solutions
In particular, NBG is focusing on the following key strategies and aims to be the bank of first choice in this emerging market:
Acquisition Financing: Selective financing of NPE portfolio buyers in primary & secondary market.
REOCo financing: Financing of NPE portfolio buyers or Real Estate portfolio investors to acquire Real Estate collaterals (and subsequently sell them).
Real Estate Financing: Financing of end buyers of Real Estate assets (individuals & businesses) through a referral framework with key market participants or ad hoc transactions.
Reperforming portfolio acquisition (as and when the market matures in accordance with EBA guidelines).
Other Activities
Group Real Estate
Group Real Estate is responsible for the comprehensive management of the NBG Group's total real estate portfolio and for the provision of valuation and technical services on a fully integrated basis. The real estate portfolio is composed of properties owned or leased by the Group to house its operations (branch network, administrative offices and headquarters), the portfolio of repossessed assets ('REOs'), and special purpose vehicles housing large properties.
Property Management and Technical Services
The Technical Services Unit offers a wide spectrum of technical services to the NBG Group, starting from its services of facility management of Bank buildings, focusing primarily on maintenance and refurbishment of Group infrastructure and facilities (1,204 Sites), to the undertaking of specialized studies and projects, provision of certifications, surveys, property controls, and fire safety. In this context, the Technical Services Unit ensures the Group's compliance with all rules and regulations of a technical nature pertaining to buildings.
Global Transaction Services Activity
The Global Transaction Services Division ('GTS') of NBG serves the transactional product needs of Large Corporates, Small & Medium Size enterprises, Financial Institutions as well as Small Businesses and individuals. Products & Services offered include Payments Import & Export Collections, Letters of Guarantee ('LG'), Letters of Credit ('LC'), and Stand By Letters of Credits ('SBLCs'), as well as structured financing solutions facilitating cross border Trade and covering the entire supply chain.
Leasing
The bank began its leasing activities in 1990 through its subsidiary, Ethniki Leasing S.A. Ethniki Leasing S.A. leases land and buildings, machinery, energy parks, transport equipment, furniture and appliances, computers and communications equipment.
Factoring
The bank has been active in the provision of factoring services since 1994. In May 2009, Ethniki Factors S.A. was established as a wholly owned factoring subsidiary of the bank, as part of its strategic decision to expand its factoring operations in Greece. Ethniki Factors S.A. offers a comprehensive range of factoring services to provide customers with integrated financial solutions and high quality services tailored to their needs.
Brokerage
National Securities S.A. ('NBG Securities') was established in 1988 and constitutes the brokerage arm of NBG Group. Offering a wide spectrum of integrated and innovative investment services to both individual and institutional customers, NBG Securities aims at providing investment services tailored to their needs. Since the beginning of 2022, NBG Securities strengthened its operations, implementing its strategic plan, which includes initiatives to upgrade several internal functions, resulting in improved efficiencies and enhanced quality of customer service.
Asset Management
The company's domestic fund management business is operated by NBG Asset Management Mutual Funds S.A. ('NBG Asset Management'), which is wholly owned by the company and was the first mutual fund management company to be established in Greece. Set up in 1972, NBG Asset Management manages private and institutional client funds, made available to customers through the bank's extensive branch network.
The 22 mutual funds of NBG Asset Management, among them four in Luxembourg, cover a wide range of investment categories (Equity, Bond, Balanced and Fund of Funds) in Greece and International markets. In 2022, NBG Asset Management created a new innovative mutual fund with the main characteristics to be the fixed duration, the payment of an annual dividend and the pursuit of its capital preservation. Such a wide spectrum of investment products gives great flexibility to investors who wish to build their personal investment plan according to their investment profile and objectives through mutual fund portfolios with a high degree of diversification.
In addition to mutual fund management, NBG Asset Management offers the following services for institutional and private investors: discretionary portfolio management investment services; and advisory services. It also offers a range of financial products and services that cover the needs of social security / pension funds; insurance companies; and corporates.
History
National Bank of Greece S.A. was founded in 1841.
