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National Bank Of Greece Declares €200 Million Interim Dividend Amid Strong Growth

by THEFUTURE.TEAM

Robust Dividend Announcement

The National Bank of Greece (NBG) has confirmed the distribution of an interim dividend for the 2025 financial year. Following meetings of its Board of Directors on September 18 and October 22, 2025, the bank will disburse a total gross cash dividend of €200 million, equating to €0.2186 per share. After adjustments for shares held by the bank, the final gross dividend is set at €0.2210 per share.

Tax Implications And Key Dates

A 5% withholding tax will apply, resulting in a net dividend of €0.2100 per share for eligible shareholders, in accordance with Article 64 of Law 4172/2013, except where specific provisions under Articles 46, 48, and 63 alter the outcome. The ex-dividend date is scheduled for Monday, November 10, 2025, with shareholders needing to be registered in the Dematerialised Securities System (DSS) managed by Hellenic Central Securities Depository S.A. (ATHEXCSD) by Tuesday, November 11, 2025. Dividend payments will be processed on Friday, November 14, 2025, through NBG’s designated paying bank via participant banks and brokerage firms, as stipulated by ATHEXCSD regulations.

Impressive Financial Performance

NBG’s first nine months of 2025 have underscored its robust performance. The bank reported net profits of approximately €1 billion, with earnings per share meeting the annual target at €1.40. Furthermore, the return on tangible equity (RoTE) was recorded at 15.6% on a normalized basis, while the reported figure hit 16.1%, comfortably surpassing the year-end goal of over 15%.

Solid Capital Foundation And Expanding Credit Portfolio

The bank has maintained a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 19.0%—well above its 2025 target of 18%—and a total capital adequacy ratio of 21.8%. This solid base supports its strategic flexibility, including a planned total dividend payout of 60% of 2025 profits alongside the €200 million interim dividend. Additionally, credit growth has been notable with performing loans increasing by 12% year-on-year to €34.7 billion, alongside a non-performing exposure ratio of 2.5% and coverage at 101%.

Strategic Digital And Customer Initiatives

NBG continues its robust digital transformation efforts. Its migration to a new Core Banking System, scheduled for completion in the first quarter of 2026, and the launch of its AI-powered digital assistant, “Sophia,” are expected to further enhance operational efficiency and customer service. Digital engagement remains strong with over 4.4 million subscribers to its online channels, complemented by significant increases in both deposits and funds under management.

Commitment To Sustainability And Social Responsibility

The bank is also dedicated to sustainability and social impact initiatives. It is actively financing projects that aid Greece’s green transition and supports societal causes such as upgrading public school infrastructure through the “Marietta Giannakou” programme, along with providing aid to the National Emergency Aid Centre (EKAB) and communities affected by disasters in Chios.

Future Outlook And Leadership Commentary

Chief Executive Officer Pavlos Mylonas remarked, “The Greek economy has shown remarkable resilience amid global pressures, with robust domestic investment and record tourism projections underscoring our growth potential.” Mylonas highlighted that favourable labour market conditions, coupled with supportive fiscal and monetary policies, fortify Greece’s economic outlook. He also noted that the bank’s strong capital position and steady dividend commitment ensure enhanced shareholder value and support for strategic investments.

Conclusion

NBG’s interim dividend announcement and impressive financial metrics reflect its strategic positioning for continued growth. With a clear focus on digital innovation, sustainable investments, and maintaining a robust capital structure, the bank remains well-equipped to navigate the evolving economic landscape while delivering value to its shareholders and supporting Greece’s broader economic development.

ECB Launches Geopolitical Stress Tests For 110 Eurozone Banks

by THEFUTURE.TEAM

The European Central Bank is preparing a new round of geopolitical stress tests aimed at assessing potential risks to major financial institutions across the euro area. Up to 110 systemic banks, including institutions in Greece and the Bank of Cyprus, will take part in the exercise, which examines how geopolitical events could affect financial stability.

Timeline And Testing Process

Banks are expected to submit initial data on March 16, 2026. Supervisors will review the information in April, while the final results are scheduled to be published in July 2026. The process forms part of the ECB’s broader supervisory work to evaluate financial system resilience under different risk scenarios.

Geopolitical Shock As The Primary Concern

The stress tests place particular emphasis on geopolitical risks. These may include armed conflicts, economic sanctions, cyberattacks and energy supply disruptions. Such events can affect banks through changes in market conditions, borrower solvency and sector exposure. Lending portfolios linked to regions or industries affected by geopolitical developments may face higher risk levels.

Reverse Stress Testing: A Tailored Approach

Unlike traditional stress tests that apply the same scenario to all institutions, the reverse stress test requires each bank to define a scenario that could significantly affect its capital position. Banks must identify a geopolitical shock that could reduce their Common Equity Tier 1 (CET1) ratio by at least 300 basis points. Institutions are also expected to assess potential effects on liquidity, funding conditions and broader economic indicators such as GDP and unemployment.

Customized Risk Assessments And Supervisor Collaboration

This methodology allows banks to submit risk assessments based on their own exposures and operational structures. The approach is intended to help supervisors understand how geopolitical events could affect institutions differently and to support discussions between banks and regulators on risk management and contingency planning.

Differentiated Vulnerabilities Across Countries

A joint report by the ECB and the European Systemic Risk Board indicates that countries respond differently to geopolitical shocks. The Russian invasion of Ukraine led to higher energy prices and inflation across Europe, prompting central banks to raise interest rates. Belgium, Italy, the Netherlands, Greece and Austria experienced increases in borrowing costs and lower investor confidence. Germany, France and Portugal recorded more moderate changes, while Spain, Malta, Latvia and Finland showed intermediate levels of exposure.

Conclusion

The geopolitical stress tests will not immediately lead to additional capital requirements for banks. Their results will feed into the Supervisory Review and Evaluation Process (SREP). ECB supervisors may use the findings when assessing capital adequacy, risk management practices and operational resilience at individual institutions.

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