National Bank of Greece2022年年度報告.pdf

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1、 March 2023 Group and Bank Annual Financial Report 31 December 2022 Table of Contents At a glance.5 Chairmans Statement.7 Chief Executive Officers Statement.9 Certification of the Board of Directors.10 Board of Directors Report.12 Supplementary Report of the Board of Directors.164 Audit Committee Re

2、port.170 Independent Auditors Report.176 Statement of Financial Position.184 Income Statement.185 Statement of Comprehensive Income.186 Statement of Changes in Equity Group.187 Statement of Changes in Equity Bank.188 Cash Flow Statement.189 NOTE 1 General information.190 NOTE 2 Summary of significan

3、t accounting policies.191 2.1 Basis of preparation.191 2.2 Going concern.191 2.3 New and Amended Standards and Interpretations.193 2.4 Consolidation.194 2.5 Business combinations.196 2.6 Foreign currency translations.197 2.7 Classification and Measurement of financial instruments.197 2.8 Derivative

4、financial instruments and hedging.202 2.9 Fair value of financial instruments.204 2.10 Recognition of deferred Day 1 profit or loss.204 2.11 Derecognition.205 2.12 IBOR Reform.206 2.13 Sale and repurchase agreements.207 2.14 Securities borrowing and lending.207 2.15 Regular way purchases and sales o

5、f financial assets and liabilities.207 2.16 Offsetting.208 2.17 Commodity broker-trader.208 2.18 Revenue recognition.208 2.19 Property and equipment,RoU assets and foreclosed assets.208 2.20 Investment property.209 2.21 Goodwill,software,and other intangible assets.209 2.22 Impairment of intangible

6、assets.210 2.23 Insurance operations.210 2.24 Leases.210 2.25 Cash and cash equivalents.211 2.26 Provisions.211 2.27 Financial guarantee contracts.211 2.28 Employee benefits.212 Table of Contents 2.29 Income taxes.212 2.30 Debt securities in issue and other borrowed funds.213 2.31 Share capital,trea

7、sury shares and other equity items.213 2.32 Segment reporting.213 2.33 Assets and liabilities held for sale and discontinued operations.213 2.34 Government grants.214 2.35 Related party transactions.214 2.36 Fiduciary and trust activities.214 2.37 Earnings/(losses)per share.214 NOTE 3 Critical judgm

8、ents and estimates.215 3.1 Fair value of financial instruments.215 3.2 Income taxes.215 3.3 Pension benefits-Defined benefit obligation.216 3.4 Impairment assessment of investments in subsidiaries,associates and joint ventures in individual financial statements.216 3.5 Assessing whether the contract

9、ual cash flows are SPPI.216 3.6 Measurement uncertainty in determination of ECL estimates.216 3.7 Leases.217 3.8 Assessment of control over investees.217 NOTE 4 Financial risk management.217 4.1 Group Risk Management Governance Framework.217 4.2 Credit risk.217 4.3 Market risk.239 4.4 Country risk.2

10、46 4.5 Liquidity risk.246 4.6 Capital adequacy.248 4.7 Fair values of financial assets and liabilities.250 4.8 Offsetting financial assets and financial liabilities.256 NOTE 5 Segment reporting.257 NOTE 6 Net interest income.261 NOTE 7 Net fee and commission income.262 NOTE 8 Net trading income/(los

11、s)and results from investment securities and Gains/(losses)arising from the derecognition of financial assets measured at amortised cost.262 NOTE 9 Net other income/(expenses).262 NOTE 10 Personnel expenses.263 NOTE 11 Retirement benefit obligation.263 NOTE 12 General,administrative&other operating

12、expenses.266 NOTE 13 Credit provisions and other impairment charges.267 NOTE 14 Restructuring costs.267 NOTE 15 Tax benefit/(expense).267 NOTE 16 Earnings per share.268 NOTE 17 Cash and balances with central banks.268 NOTE 18 Due from banks.268 NOTE 19 Financial assets at fair value through profit o

13、r loss.268 NOTE 20 Derivative financial instruments.269 NOTE 21 Loans and advances to customers.271 Table of Contents NOTE 22 Investment securities.279 NOTE 23 Investment property.280 NOTE 24 Equity method investments.280 NOTE 25 Software.281 NOTE 26 Property and equipment.282 NOTE 27 Deferred tax a

14、ssets and liabilities.283 NOTE 28 Other assets.285 NOTE 29 Assets and liabilities held for sale and discontinued operations.285 NOTE 30 Due to banks.287 NOTE 31 Due to customers.288 NOTE 32 Debt securities in issue.288 NOTE 33 Other borrowed funds.290 NOTE 34 Other liabilities.290 NOTE 35 Contingent

15、 liabilities,pledged assets and commitments.291 NOTE 36 Share capital,share premium and treasury shares.294 NOTE 37 Tax effects relating to other comprehensive income/(expense)for the period.295 NOTE 38 Reserves&retained earnings.296 NOTE 39 Non controlling interests.297 NOTE 40 Dividends.297 NOTE 4

16、1 Cash and cash equivalents.297 NOTE 42 Related party transactions.297 NOTE 43 Acquisitions,disposals and other capital transactions.299 NOTE 44 Group companies.303 NOTE 45:Independent auditors fees.304 NOTE 46 Restructuring Plan.304 NOTE 47 Ukraine crisis.305 NOTE 48 Events after the reporting peri

17、od.305 Disclosures of Greek Law 4261/2014 Art.81.306 Country-by-country reporting in accordance with article 81 of Greek Law 4261/2014 for the year ended 31 December 2022.306 Country-by-country reporting in accordance with article 81 of Greek Law 4261/2014 for the year ended 31 December 2022.306 Dis

18、closures of Greek Law 4261/2014 Art.82.307 Disclosures on a group level of article 6 of Greek Law 4374/2016.308 TABLE 1:PAYMENTS FOR PROMOTION AND ADVERTISING EXPENSES TO MEDIA ENTITIES (ACCORDING TO PAR.1 ARTICLE 6 OF LAW 4374/2016).308 TABLE 2:PAYMENTS FOR DONATIONS,GRANTS AND SPONSORSHIPS (ACCORD

19、ING TO PAR.2 ARTICLE 6 OF LAW 4374/2016).312 Availability of the Annual Financial Report.314 At a glance National Bank of Greece Who we are:National Bank of Greece S.A.(hereinafter“NBG”or the“Bank”)was founded in 1841 and its shares have been listed on the Athens Exchange since 1880.The Banks headqu

20、arters are located at 86 Eolou Street,10559 Athens,Greece,(Register number G.E.MH.237901000),tel.(+30)210 334 1000,www.nbg.gr.By resolution of the Board of Directors,the Bank can establish branches,agencies and correspondence offices in Greece and abroad.In its 182 years of operation,the Bank has ex

21、panded on its commercial banking business by entering into related business areas.The Bank and its subsidiaries(hereinafter the“NBG Group”or“Group”)provide a wide range of financial services including mainly retail,corporate and investment banking,non-performing management&Specialized Asset Solution

22、s,transactional banking,leasing,factoring,brokerage,asset management,real estate management and insurance related services.The Group operates mainly in Greece but also abroad through its branch in Cyprus and its subsidiaries in North Macedonia,Cyprus,Romania,Bulgaria,Luxembourg,Netherland and U.K.Fo

23、llowing the respective Banks decision in 2021,the Group ceased its operation in Egypt,Malta and NBG London Branch;and therefore the NBG Egypt Branch,the NBG London Branch and the subsidiaries NBG Malta Ltd(formerly known as NBG Bank Malta Ltd)and NBG Malta Holdings Ltd are currently under liquidatio

24、n.The Bank 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 Greeces financial services sector.For further details on our Business Overview,see section“Economic and financial review”.About ou

25、r Purpose,Vision and Values Purpose:Our Purpose Statement Is“Together We Create Future”.Vision:Our vision is to become the“Bank of First Choice”for customers,talent,and investors.A trustworthy,human,responsive bank,that acts as a growth catalyst and unlocks potential for households,businesses,commun

26、ities,and our employees.Values:Human,Trustworthy,Responsive,Growth Catalyst Our Values Throughout our history,from 1841 until today,we recognize that our successful business activity is mainly based on the fact that we operate guided by our Purpose,Vision and Values.Our values are,and will remain et

27、ched in our DNA,in order to move forward together to the next day.Human Trustworthy Responsive Growth Catalyst Your needs and choices are at the centre of everything we do.We operate with transparency,knowledge and experience.We provide flexible solutions tailored to your needs.We accelerate progres

28、s and prosperity.About Environment,Social and Governance In 2021,NBG launched a holistic Environmental,Social and Governance(“ESG”)effort to ensure compliance with evolving regulatory framework,fulfilment of its commitment to the Principles for Responsible Banking(“PRB”)of the United Nations Environ

29、ment Program Finance Initiative(“UNEP-FI”)and implementation of ESG best practices across the organization(covering management of credit and other types of risk,business strategy,products and services,reporting,as well as efforts to reduce NBGs direct and indirect emissions footprint).In line with 2

30、021 above,NBG continued with further shaping its strategy and deepening the integration of ESG aspects,starting by integrating the ESG elements of climate and environmental into our activity and operations.Our ESG Management Committee,chaired by the Chief Executive Officer(“CEO”),governs all strateg

31、ic decisions related to ESG,a new Board Committee on Innovation&Sustainability has come into force,while a dedicated Group Corporate Social Responsibility&Sustainable Development Division has been established under the Group Chief Compliance and Corporate Governance Officer to oversee compliance and

32、 reputational risk matters pertaining to corporate social responsibility,sustainability and climate change.NBG has integrated the management of ESG topics across the three lines of defence,with the appointment of specific roles and responsibilities within existing organizational units,as well as the

33、 establishment of new ESG related teams.In this context,a new independent sector,the Climate&Environmental Strategy Sector,has been set up to define,coordinate and monitor implementation of Climate&Environmental Strategy across the front-line.Key initiatives relevant to the implementation of the Cli

34、mate&Environmental strategy and related risk management are being included in the Transformation Program to ensure high level of focus and execution discipline in the aforementioned critical areas(see Section“Transformation Program”).For further details on ESG&Sustainability,see section“Non-Financia

35、l Statement”.Chairmans Statement 7 Chairmans Statement Gikas A.Hardouvelis Chair of the Board of Directors“2022 was a year of major accomplishments.National Bank of Greece S.A.continued to grow,investing in digital banking and its people,and emerging as the Bank of First Choice.Operating costs remai

36、ned well contained.New production of loans supported the economy and generated healthy and sustainable interest and fee income,with core Return on Tangible Equity improving to 9.6%from 8.2%the year before,and the cost to core income ratio declining to 46.9%from 52.2%a year earlier.A new strategic co

37、operation with EVO Payments Inc.on our merchant acquiring business is boosting profitability and opens new opportunities.Our leading capital position in Greece is growing even stronger,with a fully loaded Common Equity Tier 1(“CET1”)ratio of 15.7%,which is well above the regulatory minimum requireme

38、nt.Non-Performing Exposures(“NPEs”)continued to decline in 2022,with the NPE ratio reaching mid-single-digit levels,as the amount of cured loans consistently exceeded the defaulted ones,thus producing negative net NPE formation.Opportunities are also opening from the millions of assets transferred t

39、o servicers by the banks.At NBG,we did not carve out our Troubled Assets Unit but,instead,created a new division called Specialized Assets Solutions,which kept the know-how of the troubled loan universe within the Bank and is now able to service it,providing advice and real estate financing.Our grou

40、nd-breaking investments in technological infrastructure such as the replacement of our Core Banking System,are enhancing our operational efficiency,automating our processes,and improving our commercial offerings.Independent technological surveys by consulting companies place our Bank among the top d

41、igital champions globally and the best in Greece,an assessment which is also verified by the number of our digital banking users,the largest amongst Greek banks.These efforts and results are consistent with our vision to optimize our product and service offering to our clients,thus becoming the“Bank

42、 of First Choice”.At NBG we aim high,work as a team,and deliver tangible results.The Banks Purpose Statement remains pivotal to our activities:“Together We Create Future.”Together with our people and our customers,we adhere to our four-core values,aspiring to a Bank that is Human,Trustworthy,Respons

43、ive and A Growth Catalyst.The Bank continues placing outmost importance in the maintenance of top-quality corporate governance and conduct standards.The Board of Directors and its committees are constantly overseeing all major developments,following an enhanced Board Working Model.They meet regularl

44、y and hold in depth lengthy discussions on strategy,current developments,and important areas such as ESG,Digital,Partnerships,and other.Consistent with its ESG vision for the future,NBG leads the market in sustainable energy financing.In 2022 we supported 58 Renewable Energy Source projects with loa

45、ns of 1.6 billion,up by 45%from the previous year.The Bank also supports its corporate clients transition to sustainable business models in line with both their sector decarbonization paths and NBGs own Net-Zero mid-to long-term strategy.NBG supports inclusion and equal opportunities as well,partici

46、pating for the sixth consecutive year in Bloombergs Gender Equality Index.The wide perimeter of NBGs ESG presence and digital transformation is evident in the numerous awards and distinctions it received in 2022.These include:the“Best Corporate Governance Greece”by Capital Finance International(“CFI

47、”);the“Diamond Distinction”by Corporate Responsibility(“CR”)Index;three prizes in the context of the World Finance Magazines international awards“Digital Banking Awards 2022”,as“Best Consumer Digital Bank in Greece”,“Best Mobile App in Greece”and“Best Digital SME Bank in Greece”;two prizes in the co

48、ntext of The Digital Banker Magazines international awards“Digital CX Awards 2022”;seven awards in the context of the“Digital Finance Awards 2022.”NBG maintains the highest bank credit rating in Greece at BB-(based on the current rating from Fitch in January 2023),facilitating the countrys effort to

49、 regain Investment Grade.The latter stands within reach,as the economy remains resilient to the severe geopolitical challenges from the Ukraine crisis and the concomitant escalation of energy and commodity-induced inflation shock.Greeces economic performance exceeded expectations in 2022,with GDP gr

50、owth outpacing the euro area average by a wide margin for a second consecutive year.Domestic growth was approximately 6%in constant price terms,compared with 3.5%,on average,in the euro area.The revival of tourism,with revenue rising very close to the all-time high level of 2019,along with the decis

51、ive fiscal support,cushioned the inflation drag on disposable income.The business sector overcame the surge in production costs and remained healthy,with profits climbing to a 12-year high and gross fixed capital formation rising by 11.6%.The labor market also proved dynamic,with unemployment remain

52、ing on a steady downward path and labor income rising by 5.6%.Positive wealth effects in 2022 provided additional support to domestic demand.Prices of residential real estate which accounts for almost 90%of household wealth rose by 10.4%year-over-year(“y-o-y”)in September 2022,recording a cumulative

53、 appreciation of nearly 40%from their lowest point during the Greek crisis.Non-labor sources of personal income(interest,dividends,and rents)also exhibited a double-digit growth.Chairmans Statement 8 Despite the accelerating monetary tightening by the European Central Bank(“ECB”),bank liquidity rema

54、ined abundant and credit expansion in 2022 to the domestic private sector reached a 13-year high of c.7.0 billion.Inward Foreign Direct Investment(“FDI”)surged to an all-time high of c.6.5 billion,setting the stage for increased capital formation.A strong fiscal performance together with the inflati

55、on spike resulted in a sharp fall in public debt,estimated at c.25%of GDP,and a primary deficit of c.1.5%of GDP or even lower.The economy is heading to a small primary surplus and a new substantial decline in debt to GDP ratio in 2023.All in all,the Greek economy entered 2023 in high gear.It is head

56、ing for an investment-led recovery within a less dynamic international environment.A strongly adaptable private sector and the utilization of the Recovery&Resilience Facility(“RRF”)-related impetus in which NBG has adopted a leading role through Ethniki 2.0-provide support for Greeces overperformanc

57、e in the current year and beyond.Both the economy and the bank are anticipated to thrive in the years ahead.On the back of a recovering economy,NBG is focused on accelerating income growth and value generation,capitalizing on its strong fundamentals and a solid operating model of digital development

58、 and expansion.NBG today enjoys the trust of its customers,the appreciation of its employees and the satisfaction of its shareholders.It thrives as an ever-transforming,competitive,stable,well-capitalized and highly profitable bank.”Athens,13 March 2023 Gikas A.Hardouvelis Chair of the Board of Dire

59、ctors Chief Executive Officers Statement 9 Chief Executive Officers Statement Pavlos K.Mylonas Chief Executive Officer“Economic growth in Greece remained strong throughout FY.22 overcoming inflation-induced risks and remains on a solid trajectory,supported by buoyant tourism,continued fiscal support

60、,strong labor market conditions,as well as by the sharp recovery in corporate profitability.For NBG,2022 was also a year of consistently strong financial performance,which was reflected across all business lines.Our net performing loan book expanded by an impressive 2.5 billion(equivalent to+10%y-o-

61、y),driven by disbursements of 6.7 billon,mainly to corporates.Our core operating profit has surged by 56.7%year over year(“y-o-y”)to almost 700 million,far exceeding the full year guidance of c.0.5 billion,while the profit after tax attributable to NBG equity shareholders reached 1,120 million,up by

62、 29.2%y-o-y.This robust performance reflects the overperformance in all lines of the Income Statement:strong recovery in net interest income(+13.0%y-o-y),adding up to core income growth of 14.5%y-o-y.Operating expenses remained contained,despite inflationary pressures and increased depreciation char

63、ges driven by our strategic IT investment plan,which includes the ongoing replacement of our Core Banking System.Our robust liquidity,strong capital position and further improved asset quality,all provide the Bank with strong competitive advantages.Notably,full targeted longer-term refinancing opera

64、tions(“TLTROs”)repayment still leaves NBGs cash position at c.7 billion.Our strong capital position was enhanced with Common Equity Tier 1 ratio and Total Capital ratios at 15.7%and 16.8%respectively,on a fully loaded basis.Further,Non Performing Exposures formation remained negative throughout 2022

65、,driving our NPE ratio down to 5.1%,below our FY.22 guidance of c.6%.On the transactions front,the closing of the Ethniki Hellenic General Insurance S.A.at the end of 1Q.22 allowed us to exit the 2019 Revised Restructuring Plan.NPE securitisations continued in 2022 with the signing of“Frontier II”tr

66、ansaction of c.1.0 billion,in terms of gross book value as of 4Q.21,under the provision of Hercules Scheme II.In addition to NPE transactions,in 2022 we proceeded with our plan of establishing strategic partnerships with key players in the IT and non-IT area.First,we established NBG Pay Single Membe

67、r S.A.,a joint venture with EVO Payments Inc in the merchant acquiring and payment processing services.Additionally,we are about to sign a new strategic partnership agreement with the technology company Epsilon Net S.A.specializing in Enterprise resource planning(“ERP”)service provision to small bus

68、iness customers,which will support us further to expand our digital offering and develop a new distribution channel for our products and services to such customers.On the back of our solid financial performance,the Banks efforts in the Transformation Program that runs for over 4 years now,continue u

69、nabated to enhance our commercial effectiveness and operational efficiency.Just a few of its success comprise:NBG,utilizing its own“Ethniki 2.0”services complementing the countrys“Greece 2.0”program,was the first bank to approve financing under the Recovery&Resilience Facility(“RRF”)in March 2022.By

70、 year-end 2022,we had a significant market share or c.0.3 billion in RRF loans,1/3 of which under the Green transition pillar.In the retail business,we continued enhancing our digital offering,which now ranks among the top digital champions globally in the banking sector as indicated by independent

71、surveys,with digital subscribers and active users reaching 3.7 million(+7.4%y-o-y)and 2.7 million(+10.5%y-o-y)respectively in 4Q.22.For our People,the priorities in 2022 were the introduction of performance management,as well as rewards and upskilling.Specifically,we successfully launched the new Va

72、riable Remuneration Scheme directly linked to the new Performance Management System,introducing performance-based rewards.Training courses of more than 220,000 hours took place both for our Head Office and Branch Network employees.NBG twice provided additional special wage supplement to its employee

73、s during 2022 as a relief measure in light of high inflation.We also promoted our cultural transformation based on our 4 values(human,trustworthy,responsive,growth catalyst).Centralization and automation efforts continue,through streamlining and automation of processes and upgrading technology,inclu

74、ding the ongoing replacement of our Core Banking System.In the area of ESG,the energy crisis further raised the importance of green transition and our efforts have accelerated towards this direction.We maintained our leading position in Renewable Energy Sources financing,incorporated ESG criteria in

75、 our corporate credit assessment process and enhanced measurement of our generated emissions to enable proper target setting and monitoring.Our sponsorship program continues with numerous initiatives supporting our society.Our key sponsorships in 2022 focused in restoring fire-impacted areas and pro

76、moting culture.Our governance standards are recognized as following best practices.All the above successes are fully reflected in the upgrades of NBGs credit ratings since during 2022 by all rating agencies,reflecting the structural improvements in our asset quality,capital adequacy and core profita

77、bility,aided also by rising interest rates and economic growth in Greece.Notably,NBG maintains the highest credit rating in Greece,at BB-.Looking ahead,the solid fundamentals of the Greek economy should keep it in positive growth territory in 2023,outperforming the rest of Eurozone.In this environme

78、nt and supported by a solid Balance Sheet and positive profitability momentum,we aspire to enhance our core Return on Tangible Equity further to over 12%by year-end 2025.Sustained positive organic capital generation creates options with regards to shareholder distribution.We also aspire to provide o

79、ur clients expeditiously with advantageous products and services,maintaining their trust and confidence on NBG,the“Bank of First Choice”.”Athens,13 March 2023 Pavlos K.Mylonas Chief Executive Officer Certification of the Board of Directors on the Annual Financial Report as at 31 December 2022 10 Cer

80、tification of the Board of Directors Certification by the Chairman of the Board of Directors,the Chief Executive Officer and the Board of Directors member pursuant to Article 4 of Greek Law 3556/2007 We,the members of the Board of Directors of National Bank of Greece S.A.certify that to the best of

81、our knowledge:(1)The Annual Financial Statements for the year ended 31 December 2022 have been prepared in accordance with the applicable accounting standards and present a true and fair view of the assets,liabilities,equity and results of operations of the Bank and of the companies included in the

82、consolidation.(2)The Board of Directors Report for the year ended 31 December 2022 fairly presents the evolution,the performance and the position of the Bank and of the companies included in the consolidation,including the description of the main risks and uncertainties they face.Athens,13 March 202

83、3 THE CHAIRMAN OF THE BOARD OF DIRECTORS THE CHIEF EXECUTIVE OFFICER THE BOD MEMBER GIKAS A.HARDOUVELIS PAUL K.MYLONAS MATTHIEU A.KISS Board of Directors Report 2022 Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and financial review Risk

84、 management Non-Financial Statement Corporate Governance Statement 12 board of Directors Report Board of Directors Report About NBGs Transformation Program About NBGs Transformation ProgramNBGs Transformation Program capitalises on our core strengths and addresses our key challenges to ensure we suc

85、cessfully capture opportunities and achieve our financial and operational targets.Strong governance and cadensewith full sponsorship of management team and Board of Directorsc.40 initiatives/c.90 subinitiatives in 2022driving sustainable changes in line with our Business Plan1,000+colleaguesacross t

86、he whole organization actively involved in the Transformation Program Healthy Balance Sheet&Specialised Asset SolutionsWe maintain a healthy balance sheet,while capturing emerging opportunities in the ecosystem of servicers and investorsEfficiency&AgilityWe eliminate inefficiencies and tightly manag

87、e spend,improving profitability in a sustainable mannerBest Bank for our ClientsWe deepen customer relationships,addressing their needs across channels and expanding our offering through strategic partnershipsTechnology&ProcessesWe enhance all aspects of our technological infrastructure and core pro

88、cesses,enabling our commercial and efficiency objectivesPeople,Organisation&CultureWe revamp our Human Resources platform and enhance our culture,building a modern and flexible organisationClimate&EnvironmentWe address climate-related and environmental risks,while capturing opportunities from the tr

89、ansition of households and businessesKey Highlights Strategic priorities for 2022-2024 Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and financial review Risk management Non-Financial Statement Corporate Governance Statement 13 Adjusted

90、Group profit for the year from continuing operations 881 million for the year ended 31 December 2022(31 December 2021:832 million).Banks new loan disbursements Loan disbursements reach 6.7 billion+36.7%year-over-year(“y-o-y”),driven mainly by corporates.Non-Performing Exposures(“NPEs”)Group NPE stoc

91、k amounted to 1.8 billion,with NPE ratio at 5.2%.Liquidity Group deposits grew by 1.7 billion to 55.2 billion,Liquidity Coverage Ratio(“LCR”)and Net Stable Funding Ratio(“NSFR”)stand comfortably above regulatory requirements.Common Equity Tier 1 ratio(“CET1”)The Groups Common Equity Tier 1(“CET1”)an

92、d Total Capital ratios as at 31 December 2022 were 16.6%and 17.7%respectively,exceeding the OCR ratios of 11.75%for 2022,post capital relief measures,and 14.50%for 2023.Selected Awards&Accomplishments Awards&Distinctions“Best Corporate Governance Greece”CFI,“CR-Index Award 2021-2022”Diamond/Praise f

93、or the Society.Gender diversity At 31%(one Executive Member and three Independent Non-Executive Members of the Board of Directors)are women.NBG Carbon Footprint initiative Measurement of our Scope 3 indirect emissions,for both 2020 and 2021,and in particular of our Scope 3 financed emissions,accordi

94、ng to the Partnership for Carbon Accounting Financials(“PCAF”)methodology.Adjusted Group profit for the year from continuing operations at 881 million,up 5.9%on an annual basis 2022 Group Financial Results Non-financial Digital functionality Digital transactions soared,supported by our efforts to ac

95、celerate onboarding&engagement and enhance the digital capabilities of our customers The introduction of new digital capabilities in combination with campaigns to promote digital channels led to a significant acceleration of digital usage and engagement:o Digital active users reach 2.7 million(+10.5

96、%y-o-y).o 17.5%y-o-y increase in transactions via digital channels.o 25.1%y-o-y increase in sales via digital channels.Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and financial review Risk management Non-Financial Statement Corporate G

97、overnance Statement 14 A digital leap forward creating a new competitive advantage Digital transactions soared,supported by our efforts to accelerate onboarding&engagement and to enhance the digital capabilities of our customers.Key digital metrics New digital functionalities Onboard Digital subscri

98、bers 3.7 million(+7.4%y-o-y).Mobile app downloads 3.6 million(+22.0%y-o-y).Digital onboarding enhancements.Online Sole Proprietorship onboarding via NBG Mobile Banking(January 2023).Engage Digital active users(12 months)2.7 million(+10.5%y-o-y).Digital active users(1 month):2.3 million(+10.6%y-o-y).

99、Contactless Payments via Mobile Banking:NBG cards on Google Pay and Apple Pay.FX transfers for all bank customers.Request for remittances fate and request for amendment via Internet Banking.Internet&Mobile Banking based on Accessibility Compliance standards for people with disabilities.Instant notif

100、ications service for business users.Second Authentication Factor using Push OTP.Gross-sell Digital sales c.275 thousand products(+25.1%y-o-y).Expansion of online repayments to a wide range of lending products.New products added in the digital sales portfolio(new credit card offering,Money Box saving

101、s tool,New Generation investment).Increase of Express personal loan credit limit from 2,000 6,000.Acceleration of digital transformation and new digital functionalities Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and financial review R

102、isk management Non-Financial Statement Corporate Governance Statement 15 Large scale Transformation Program Building upon its long-lasting tradition of trust and contribution to the Greek economy and society,the National Bank of Greece embarked on a large-scale Transformation Program(see section“Tra

103、nsformation Program”)in the second half of 2018 to transform the Bank,responding to the challenges and tapping the business opportunities presented by the rapidly changing economic and banking landscape.The Transformation Program addresses the strategic priorities that leverage on our strengths and

104、address our weaknesses.Through more than four years of implementation,the Transformation Program has delivered impressive results in terms of core profitability fully in line with the Banks financial and business targets up to 2024 and tangible improvements to NBGs business and operating model.These

105、 results are delivered through discrete workstreams encompassing c.40+initiatives and involving 1,000+managers and employees of the Bank.NPE reduction plan From December 2015 to December 2022,the Group achieved a decrease of 22.6 billion of the NPE stock through a combination of organic and inorgani

106、c actions,with Group NPE stock as of 31 December 2022 at 1.8 billion(Bank:1.6 billion).Similarly,the NPE ratio dropped from 46.8%to 5.2%post to the Project“Frontier”derecognition and the Project“Frontier II”classification as Held for Sale.More specifically,NPE reduction continued in 2022,with the st

107、ock of domestic NPEs reduced further by 0.5 billion to 1.6 billion,reflecting mainly inorganic actions(see below“Disposal of NPE portfolios”).Large scale Transformation Program NPE reduction plan Disposal of NPE portfolios Divestments Financial highlights 2019 Revised Restructuring Plan Regulatory d

108、evelopments Other Key achievements and significant developments of NBG Group in 2022 Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and financial review Risk management Non-Financial Statement Corporate Governance Statement 16 Domestic NP

109、E ratio dropped by c.190 basis points(“bps”)to 5.1%in 4Q.22,with NPE coverage at 88.4%from 77.5%in 4Q.21.International NPE ratio and coverage in 4Q.22 settled at 9.2%and 60.5%,respectively.Furthermore,as per the regular European Central Bank(“ECB”)calendar,the revised NPE targets for the 2023-2025 p

110、eriod will be submitted to the Single Supervisory Mechanism(“SSM”)on 31 March 2023.Disposal of NPE portfolios Project“Frontier II”On 25 November 2021,the Bank decided the disposal of a portfolio of Greek NPEs in the form of a rated securitization that will utilize the provisions of the Hellenic Asse

111、t Protection Scheme(“Hercules II”,see below).The Project“Frontier II”accounted for c.1.0 billion,in terms of gross book value as of 31 December 2021.The portfolio consists of predominantly secured Large Corporate,Small and Medium Enterprises(“SMEs”),Small Business Lending(“SBL”),Mortgage Loans and C

112、onsumer Loans.On 29 June 2022,the Bank announced the submission of the application under Hercules II,for the securitisation of Project Frontier II.The application relates to the provision of a guarantee by the Greek State on the senior notes of an amount up to 460 million.Subsequently,on 29 July 202

113、2,the Bank announced that it has entered into a definitive agreement with funds managed by Bracebridge Capital,LLC,for the sale of 95%of the Mezzanine and Junior notes.NBG will retain the 100%of the Senior notes and 5%of the Mezzanine and Junior notes.The transaction is estimated to be completed wit

114、hin the 2Q.23,subject to required approvals.The transaction is being implemented in the context of the Banks NPE deleveraging strategy and is in line with the targets submitted to the SSM.Hellenic Republic Asset Protection Scheme In December 2019,the Greek parliament voted for the creation of a Hell

115、enic Asset Protection Scheme(“HAPS”)(Greek Law 4649/2019)also known as the“Hercules Scheme”.The Hercules Scheme will support banks on deleveraging NPEs through securitization,with the aim of obtaining greater market stability.The participation in the Hercules Scheme is voluntary and open to all Gree

116、k banks and it does not constitute state aid as guarantees are priced on market terms.Under the Hercules Scheme,the Hellenic Republic will provide guarantees up to 12.0 billion on the senior bonds of securitizations of NPEs.The Hercules Scheme will become effective only when the originator has sold

117、at least 50%plus one of junior tranches(and mezzanine if any)and the notes are of such amount that allows the derecognition and the Significant Risk Transfer(SRT)of the securitized receivables.Moreover,in July 2021,following the approval from the Directorate General for the Competition of the Europe

118、an Commission(the“DG Competition”)on 9 April 2021 and based on the Greek Law 4818/2021,the Hercules Scheme(named also as“Hercules II”)was extended by 18 months,with no material changes in terms.Project“Pronto”In December 2021,the Bank decided the disposal of the non-performing leasing exposures incl

119、uding:the sale of Probank Leasing S.A.shares,the sale of the Banks leasing portfolio(ex-FBB)and the sale of NBG Leasing S.A.lease portfolio.The gross book value of the Banks and NBG Leasings leasing portfolios,as of 31 December 2022,amounted to c.51 million.The closing of the transaction is expected

120、 to be completed within the 2H.23.Project“Solar”In December 2021,the Bank decided to launch the divestment of the secured portfolio of SMEs(Project“Solar”)with a gross book value c.170 million as of 31 December 2021,through a joint securitization process under HAPS.In August 2022,the Bank together w

121、ith the other Greek financial institutions submitted to the Greek Ministry of Finance a joint application for inclusion of the senior notes to be issued in the context of the Solar Securitization in the HAPS scheme.The transaction is expected to be completed within the 2Q.23,subject to required appr

122、ovals.Divestments Planned disposal of subsidiary under 2019 Revised Restructuring Plan commitments Sale of a majority equity holding in Ethniki Hellenic General Insurance S.A.On 24 March 2021,the Banks Board of Directors approved the sale of the 90.01%out of 100.00%stake in Ethniki Hellenic General

123、Insurance S.A.(“Ethniki Insurance”or“NIC”)and authorized the Banks Management to proceed with the signing of the Share Sale and Purchase Agreement(“SPA”)with CVC Capital Partners(“CVC”)on 26 March 2021.The transaction was approved by the Extraordinary General Meeting of NBGs Shareholders held on 21

124、April 2021.The closing of the transaction took place on 31 March 2022,following the reception of the required supervisory approvals by national and EU authorities.Other divestments CAC Coral Ltd On 16 October 2020,the Bank announced that it has entered into a definite agreement with Bain Capital for

125、 the disposal of its 100%stake in a Cypriot Credit Acquiring Company,CAC Coral Ltd(Project“Marina”),which contains a portfolio of non-performing corporate,SME and consumer and mortgage loans with total gross book value of c.325 million(200 million of allocated collateral value)as of 30 June 2019.The

126、 portfolio consists predominantly of legacy non-performing loans.The transaction is being implemented in the context of NBGs NPE deleveraging strategy and in accordance with the Operational Targets submitted to the SSM.The closing of the transaction took place on 15 July 2022,following the reception

127、 of the required approvals by the competent regulatory authorities.Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and financial review Risk management Non-Financial Statement Corporate Governance Statement 17 Other transactions Strategic

128、Partnership of NBG with EVO Payments Inc On 17 December 2021,the Bank announced that it has entered into a long-term strategic partnership with EVO Payments,Inc(“EVO”)to provide merchant acquiring and payment processing services.Following the receipt of all required regulatory approvals,the Bank ann

129、ounced on 9 December 2022,that it has completed the sale of 51.00%of NBG Pay Single Member Societe Anonyme(NBG PAY S.M.S.A.)share capital to EVO for a consideration of 158 million.NBG PAY S.M.S.A.comprises NBGs Merchant Acquiring Business following a spin-off.In addition,a long-term exclusive commer

130、cial agreement was signed between NBG,NBG PAY S.M.S.A.and EVO,where NBG will offer to its merchants the market-leading,card acceptance solutions of NBG PAY S.M.S.A.,through the proprietary products and processing platforms of EVO.Significant value creation is expected from the synergies that the par

131、tnership will create from combining NBGs wide client base with EVOs technological expertise in the payments business.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 a

132、cquisition 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 Banks strategy to expand its operations through partnerships in the fi

133、ntech space.Cease of Groups operations in London,Malta&Egypt NBG London Branch In May 2021,the Bank decided to cease its operation in the U.K.through its branch and is currently under liquidation.NBG Malta Ltd In October 2021,the Bank decided to cease its operation in Malta.Subsequently,on 11 August

134、 2022,the subsidiary surrendered its banking licence and was placed into liquidation.Therefore,its name was changed from NBG Bank(Malta)Ltd to NBG Malta Ltd since it no longer qualifies as a financial institution.NBG Egypt Branch In May 2021,an official approval was received by the Central Bank of E

135、gypt for the downsize and ultimately cease of the Banks branch operations in Egypt(see below“2019 Revised Restructuring Plan”).NBG Egypt Branch is currently under liquidation.Financial highlights Adjusted Group profit after tax(“PAT”)from continuing operations at 881 million with Core Operating Prof

136、it(“COP”)up by 56.7%y-o-y Adjusted Group profit after tax(“PAT”)from continuing operations reached 881 million for the year ended 31 December 2022,with COP up by 56.7%y-o-y,driven by the improved core income by 14.5%,a sharp decrease in loan impairments by 20.5%,and operating expenses base disciplin

137、e despite increasing inflationary pressures(up by 2.8%y-o-y).Net Interest Income(“NII”)at Group level increased by 13.0%y-o-y to 1,369 million,mainly reflecting positive loan volume effects,complemented by accelerating repricing in 2022 and partially offset by a reduction in loan interest income due

138、 to NPE deleveraging and lower NII from targeted longer-term refinancing operations(“TLTROs”).Net fee and commission income reached 347 million,expanding by 20.9%y-o-y,supported by significant growth in all business areas,driven by higher transaction demand.Operating expenses remained contained Oper

139、ating expenses for the year ended 31 December 2022 increased by 2.8%y-o-y to 805 million on the back of strong cost containment efforts,despite the inflationary pressures.Depreciation and administrative and other operating expenses(“G&As”)increased by 5.5%and 7.5%respectively y-o-y,mainly due to cha

140、rges driven by a reinforced IT investment strategy,and inflation pressures,respectively.Domestic performing loans additions accelerated in FY.22 at 8.0 billion Disbursements in FY.22 reached at 8.0 billion,pushing net domestic Performing Exposures(“PE”)higher by 2.5 billion y-o-y driven mainly by co

141、rporates.ECB exposure to significantly lower funding terms under TLTRO,while domestic deposit increased by savings deposits The Bank continues to benefit from ECBs temporary liquidity measures and its participation to the favourable ECB funding as of 31 December 2022,amounted to 8.1 billion(31 Decem

142、ber 2021:11.6 billion),consisting exclusively of TLTROs,while the Groups customer deposit balance stood at 55.2 billion,an increase of 1.7 billion compared to 31 December 2021,mainly due to saving deposits.Banks secured interbank funding transactions decreased by 1.1 billion compared to 31 December

143、2021 and amounted to 0.1 billion as at 31 December 2022.During the year ended 31 December 2022,interest income recorded in respect to funding transactions with ECB and included in Net Interest Income amounted to 19 million(FY.21:113 million,accrued at a rate of-1%).2019 Revised Restructuring Plan Th

144、e Group was subject to European Commission rules on European Union(“EU”)State aid in light of the aid received from the Hellenic Financial Stability Fund(“HFSF”)and the Hellenic Republic.These rules were administered by the DG Competition.Under these rules,the Banks operations were monitored and lim

145、ited to the operations included in the 2019 Revised Restructuring Plan,which aimed to ensure the Banks return to long term viability.The 2019 Revised Restructuring Plan was approved on 10 May 2019 by the European Commission.The 2019 Revised Restructuring Plan included a number of commitments to impl

146、ement certain measures and actions(the Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and financial review Risk management Non-Financial Statement Corporate Governance Statement 18“2019 Revised Restructuring Plan Commitments”).The 2019 Re

147、vised Restructuring Plan Commitments related both to domestic and foreign operations of the Group.Differentiations to the 2015 Restructuring Plan which expired on 31 December 2018 related to the deepening of the Banks operational restructuring,some amendments on the commitments and deadlines,as well

148、 as a commitment to sell the remaining stake(32.66%)in NBG Pangaea REIC(currently Prodea Investments S.A.)in substitution for the commitment to dispose of Stopanska Banka A.D.-Skopje.For domestic operations,the 2019 Revised Restructuring Plan Commitments related to constraining operating expenses,in

149、cluding the number of personnel and branches.In particular,the Commitments included the following:A further reduction of the number of branches in Greece to 420(by the end of 2019)and 390(by the end of 2020).As at 31 December 2020,the Bank had reduced its branches to 365.The Commitment has been atta

150、ined.A further reduction of the number of employees in Greece to 8,600 as at 31 December 2019 and 8,000 as at 31 December 2020.As at 31 December 2020,the Bank had reduced the number of employees at domestic level to 7,7621.The Commitment has been attained.A further reduction of total operating expen

151、ses in Greece to 845 million as at 31 December 2019 and 800 million as at 31 December 2020.As at 31 December 2020 such costs amounted to 7681 million.The Commitment has been attained.Divestment of domestic non-banking activities:n May 2019 the Bank had completed the sale of its remaining stake in NB

152、G Pangaea REIC(currently Prodea Investments S.A.).Regarding the NIC,the transaction was closed on 31 March 2022(see above“Sale of a majority equity holding in Ethniki Hellenic General Insurance S.A.”).The Commitment has been attained.Divestment from international operations:The Bank reduced its inte

153、rnational activities,by disposing certain subsidiaries in the years 2016-2019.The only non-complete divestment from international operations,since the Bank complied with its commitments with the run-off of NBG Cyprus assets,relates to the Banks branch network in Egypt.In May 2021,an official approva

154、l was received by the Central Bank of Egypt for the downsize and ultimately cease of operations in Egypt.As communicated by DG Competition in June 2022,the restructuring period and the mandate of the Monitoring Trustee for NBG has ended,as NBG complied with its commitments with the exception of the

155、run-off of NBG Egypt.It is noted,that the size of asset deleveraging remaining in NBG Egypt is very limited compared to the 1 Excluding NIC.overall assets NBG deleveraged,and that NBG exceeded the overall level of deleveraging required by the commitments of its Restructuring Plan.The effort to compl

156、ete the wind-down of NBG Egypt is in progress.Regulatory developments 2022 Climate Risk Stress Test For the 2022 Climate Risk Stress Test that the Bank successfully completed the 2022,see section“Risk Management-Management of Risks-Climate and environmental Risk”.MREL Requirements See section“Econom

157、ic and Financial Review MREL Requirements”).Other The Initiative 1821-2021 and the 200th anniversary of the beginning of the Hellenic Revolution In light to its 181 year long history,NBG which is closely linked to the creation and development of the Hellenic Republic and to the philhellene individua

158、ls responsible for establishing the Bank has turned to the 15 charitable and cultural institutions to provide input,recognizing their highly commendable work and contribution to the wider Greek community,in order to create a focus of understanding for the celebration of our National rebirth.The purp

159、ose of the Initiative and its actions The“Initiative 1821-2021”(www.protovoulia21.gr)regarding the celebration since the outbreak of the Greek Revolution aims to highlight a message of unity of purpose,declaring that history should be a source of inspiration for the future.In this spirit,the prepara

160、tion of a variety of actions and events for the celebration of our National Rebirth,in Greece and abroad,began in 2019,including conferences,exhibitions,music concerts,educational-research programs and scholarships,as part of the planned objectives for the three years 2020-2022.Ukraine crisis On 24

161、February 2022,Russia invaded Ukraine where in addition to the humanitarian crisis it has caused in the region,it has had negative economic consequences for the global economy mainly through higher energy and commodity prices that have fuelled higher inflation which has produced weaker confidence in

162、households and business.The extent of these effects will depend to a great extent on how the conflict evolves.The invasion also escalated tensions between Russia and the U.S.,NATO,the EU and the U.K.The US has imposed and is likely to impose material additional,financial and economic sanctions and e

163、xport controls against certain Russian organizations and/or individuals,with similar actions implemented by the EU and the U.K.and other jurisdictions.In 2022 the U.S.,the EU and the U.K.,each imposed packages of financial and economic sanctions that,in various ways,constrain Board of Directors Repo

164、rt for the year ended 31 December 2022 Key Highlights Transformation Program Economic and financial review Risk management Non-Financial Statement Corporate Governance Statement 19 transactions with numerous Russian entities and individuals;transactions in Russian sovereign debt;investment,trade and

165、 financing to and from certain regions of Ukraine.For a further information on the effect of the Ukrainian crisis see section“Economic and Financial Review Global Economy&Financial Environment”.The Group has taken all necessary measures to comply with sanctions imposed by the competent authorities.M

166、anagement is closely monitoring the developments and assessing periodically the impact that these may have on the Groups operations and financial position.The Group has an insignificant exposure in any positions in securities,interbank transactions(secured or unsecured),derivatives,or commercial tra

167、nsactions,related to Russia or Ukraine,or to the Ruble,or with any Bank or subsidiary that is domiciled in these countries.The Group also examined indirect exposure through its corporate loan portfolio.Corporate clients that were analysed had one of the following characteristics:o Business Activity:

168、Companies that sell their products/services in the affected countries or have local presence through subsidiaries/branches.o Supplier(s):Companies with key suppliers in the affected countries.o Shareholder(s):Key shareholder(s)or final beneficiary or other key stakeholder is of Russian nationality/c

169、itizenship.As a result of the Ukrainian crisis,the expected impact from first order effects on the underlying obligors,that meet the above criteria,was deemed immaterial.The Group also continuously invests in infrastructure to prevent,detect,and mitigate cyber threats.NBG already has in place a robu

170、st framework supported by experienced staff and appropriate IT infrastructure to minimize the probability of a cyber intrusion.From the onset of the crisis,NBG has proactively augmented this framework with a significant number of preparedness and security enhancement actions which will help reduce t

171、he impact of any such attacks.For further information see Section“Risk Management-Other Risk Factors-Cyber security”.Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and financial review Risk management Non-Financial Statement Corporate Gov

172、ernance Statement 20 Following a clear mandate from NBGs Board of Directors,NBG launched a rigorous Transformation Program in the second half of 2018,committing to the delivery of aspiring financial and operational targets.Through more than four years of implementation,the Transformation Program has

173、 enabled the delivery of impressive results in terms of core profitability fully in line with the Banks financial and business targets and tangible improvements to NBGs business and operating model.The Transformation Program has been designed and is being delivered across Workstreams,each led by a s

174、enior executive of the Bank.Delivering the Transformation Since its launch,the Transformation Program has been structured into six-month Seasons.This setup helped gain the necessary pace in the early years and ensured that the Bank remained focused to the targets.From 2022 onwards,recognizing the in

175、creased maturity and ownership of the involved employees,the Transformation Program transitioned to an annual planning horizon.The Bank maintains its agility as new Initiatives can be added to the Transformation Program,while existing ones are adjusted or removed throughout the year.Each annual cycl

176、e begins and ends with a Ceremony,aiming to review progress made,acknowledge achievements,and embed lessons learned from each Season in our future planning.In parallel,a strong Transformation Program Office(“TPO”)has been established to:Ensure coherent and consistent planning of Workstreams and Init

177、iatives,including prioritisation of activities and tracking of programme-level interdependencies.Provide project and Transformation Program Management discipline,support and best practices across Workstreams and Initiatives.Deploy a thorough,timely and effective progress(and risk)reporting mechanism

178、.The TPO is a fundamental factor in executing the Transformation Program in a coordinated,timely and disciplined manner.Transformation Program Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and financial review Risk management Non-Financi

179、al Statement Corporate Governance Statement 21 Transformation Program achievements in 2022 During 2022,more than 1,000 staff have been directly involved in the Transformation Program in at least one of c.40 initiatives and c.90 sub-initiatives,achieving significant tangible results across all Workst

180、reams:Workstreams Key achievements in 2022 Best Bank for our Clients Operationalization of Ethniki 2.0 program,playing a leading role in the Greek loan market for new and existing Corporate and Investment Banking(“CIB”)customers and their ecosystems,leveraging the National Recovery and Resilience Fa

181、cility(“Greece 2.0”).Roll out of new extroverted Small Business service model in branches and implementation of high impact productivity improvements in Small Business lending process.Increase in cross-selling and creation of new fee generation streams in Corporate,with a comprehensive and tailor-ma

182、de offering of services through the Corporate Transaction Banking(“CTB”)unit.Enhancement of cross-selling in Retail through improved offering in terms of cards,investments&bancassurance products and analytics-driven campaigns.Acceleration of customers migration to digital channels,through the offeri

183、ng of new solutions and customer experience enhancements:For individuals:NBG cards live on Google wallet/Apple Pay,new transactions and products available on internet&mobile banking.For businesses/corporates:new business mobile app live and enhancements in online legalisation services;digital migrat

184、ion to online platforms(Client Trade&i-FX)and continuous development of innovative solutions via Application Programming Interfaces(“APIs”).Acceleration of branch network transformation,incl.operations streamlining and customer-centricity/sales training to all Branch staff.Healthy Balance Sheet Revi

185、sion of Troubled Assets Unit operating model,following completion of NPE clean up.New business setup(“Specialized Asset Solutions”)to capture emerging revenue generation opportunities in the emerging ecosystem of servicers and investors(e.g.,acquisition financing,Real Estate Operating companies(“REO

186、Co”)financing).Successful containment of NPE flows and organic reduction of legacy NPEs.Efficiency&Agility Targeted efforts to optimise operating model and capacity efficiencies in selected Head Office functions.Targeted efforts to optimise non-staff costs,including real estate spend factoring in a

187、more flexible working model.Technology&Processes Core Banking System(“CBS”)replacement program in progress.Continued reengineering of core process centralizations(e.g.,Small Business lending)and automations(e.g.,Corporate workflow).Expansion of usage of new technologies,incl.Robotics Process Automat

188、ion(“RPAs”),Artificial Intelligence(“AI”),Optical Character Reader(“OCR”)and new Banking Accounting Engine deployed.People,Organisation&Culture Conclusion of the new Performance Management System(“PMS”)for 2021 performance cycle and variable payment compensation for 2021,in line with PMS results.Del

189、ivery of learning programs with a focus on the frontline(incl.customer service&sales training for branches,and Credit underwriting for Corporate)in the context of NBG Academy.Completion of 2nd Employee Engagement Survey and launch of related action plans.Deployment of SAP Success Factors as the new

190、core HR IT system.Review of talent pool and succession planning across the organisation.ESG&Enterprise Risk Management Baselining of Greenhouse Gas(“GHG”)emissions(incl.financed emissions for 2020-2021).Roll-out of ESG assessments for new originations and renewals in Corporate.Ongoing alignment to U

191、NEP FI Principles of Responsible Banking(“PRB”)and EU Taxonomy.Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and financial review Risk management Non-Financial Statement Corporate Governance Statement 22 Strategic Priorities for 2023-202

192、4 Between now and 2024 the Bank will pursue the following strategic priorities:Workstreams Strategic priorities until 2024 Best Bank for our Clients Boosting revenue generation through an increased focus on cross-selling and fee generation opportunities in Retail banking,and through deepening large

193、client relationships and broadening the SME client base in Corporate banking:In the case of Retail banking,we continue to strengthen our relationship managers frontline(primarily for the Small Business and Premium segments),a stronger focus on fee-generating products(e.g.,investment products,cards a

194、nd bancassurance),and further enhancement of sales capacity through third party partnerships(e.g.,retailers,e-commerce,agents).In the case of Corporate banking,we are strengthening the relationship managers frontline with a comprehensive set of commercial tools,enabling them to spend more time on sa

195、les of lending and non-lending products in collaboration with the Banks CTB unit.Across Retail and Corporate,we are enhancing our range of solutions to enable the transition of households and businesses to a more sustainable model.A core part of our strategy remains to support Greek businesses in ca

196、pturing opportunities in the context of the Recovery&Resilience Facility(“RRF”),including funding for investments in the context of green transition.Across segments,advanced analytics use improves clients targeting,while digital channels and strategic partnerships with third parties play an increasi

197、ngly important role in onboarding,engaging,and selling to customers.Specialized Asset Solutions2 Completing the clean-up of the banks balance sheet,targeting NPEs of c.3%of gross loans by 2025,while retaining best-in-class capital ratios.Capturing revenue generation opportunities in the emerging eco

198、system of investors and servicers(e.g.,acquisition financing,REOCo financing).Efficiency&Agility Further enhancing efficiency and productivity through continuous improvements in the Banks business and operating model.Reducing areas of high external spend such as real estate,factoring in a flexible w

199、orking model.Technology&Processes Implementing the new CBS to enable revenue generation and cost efficiencies in the medium term,enhancing digital and data infrastructure,as well as migrating to a cloud-enabled environment.Rolling out the required infrastructure to transition to a paperless operatin

200、g model across the organisation.Further optimizing core processes(both customer-facing and internal)through simplification,centralization,and automation levers(incl.the application of new technologies,such as RPAs,AI and OCR).People,Organisation&Culture Continuing to modernise Human Resources proces

201、ses and practices to attract,mobilise and incentivise our people.Further developing talent through flagship leadership programs for high potential talent,coupled with“on demand”learning and targeted curricula for priority roles.Rolling out comprehensive actions to enhance the Banks corporate culture

202、 and desired behaviours in line with our core values.Climate&Environment Incorporating climate-related and environment considerations in the Banks business strategy,incl.setting specific targets with respect to our direct and indirect GHG emissions.Capturing business opportunities in green,sustainab

203、le and transition finance,as households and businesses transition to a more sustainable model.Addressing the business challenges and managing the risks emanating from climate and environment change.Adhering to the highest disclosure standards,including non-financial and ESG reporting.2 Renamed as of

204、 1 January 2023(previously Healthy Balance Sheet).Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and Financial Review Risk management Non-Financial Statement Corporate Governance Statement 23 Key developments in the Macroeconomic and Fina

205、ncial environment Global Economy&Financial Environment Greek Economy he Macroeconomic Environment and the Banking Sector in North Macedonia Financial Results of 2022 Going concern Trend information MREL Requirements Events after the reporting period Business Overview Retail Banking Corporate and Inv

206、estment Banking NPE management(Legacy Portfolio)&Specialized Asset Solutions Other Activities Related Party Transactions The Independent Auditors Key developments in the Macroeconomic and Financial environment Global Economy&Financial Environment The global economic recovery lost steam in 2022 Renew

207、ed lockdowns in China and elevated geopolitical uncertainty due to the war in Ukraine took their toll on economic activity Monetary policy tightening was substantial in order to curb multi-year high inflation The European Central Bank Raised all three policy interest rates by 250 bps in 2022.Announc

208、ed an anti-fragmentation tool(Transmission Protection Instrument,(“TPI”)to reduce,inter alia,the volatility of euro area sovereign bond spreads.Discontinued net asset purchases under Asset Purchase Program(“APP”)&Pandemic Emergency Purchase Programme(“PEPP”)and announced the reduction of APP repurch

209、ases.The Federal Reserve Increased the target range of the Federal Funds Rate by 425 bps in 2022.Communicated that ongoing increases in the target range will be appropriate.Reduced US Treasury and agency Mortgage-Backed securities holdings by USD 474 billion to USD 8.0 trillion.Economic and Financia

210、l Review Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and Financial Review Risk management Non-Financial Statement Corporate Governance Statement 24 Global growth slowed in 2022,with risks remaining to the downside The global economic r

211、ecovery lost steam in 2022,with real gross domestic product(“GDP”)increasing by+3.4%from+6.2%in 2021 mainly due to less favourable financial conditions amid faster-than-expected monetary policy tightening to stem elevated inflation.Global inflation accelerated to+8.8%in 2022(annual average)from+4.7%

212、in 2021,albeit the pace of increase has decelerated in the final quarter of 2022.In addition,lockdown measures in China to control COVID-19 infections contributed significantly to the slowdown of domestic and offshore economic activity.Finally,high energy costs due to the war in Ukraine and related

213、sanctions on Russia took their toll on households purchasing power and businesses investment decisions.In that context,the euro area economy has decelerated noticeably in the second half of 2022,though the slowdown of activity was less-than-anticipated,as fiscal support was substantial,households dr

214、ew down their stock of pandemic-related savings and businesses adapted to the energy shock.Overall,real GDP growth was+3.5%in 2022 compared with+5.3%in 2021.The consumer price index(“CPI”)rose to+8.4%(annual average),with broadening price pressures,after averaging+2.6%in 2021.In the United States(“U

215、S”),growth slowed to+2.1%in 2022 from+5.9%in 2021 as,inter alia,fiscal policy turned restrictive and financing conditions tightened considerably.Private consumption and business investment contributed positively.On the other hand,residential investment has recorded seven quarters of contracting acti

216、vity and net exports subtracted from overall growth,as imports increased faster than exports.CPI Inflation,after rising by+4.7%(annual average)in 2021,continued to post remarkable increases in 2022(+8.0%).Finally,economic activity in China recorded its second-slowest pace since 1976.Real GDP growth

217、decelerated to+3.0%in 2022 from+8.4%in 2021,mainly due to zero-tolerance policies against COVID-19 and the related drag in activity,as well as the property market slowdown.CPI Inflation increased by+2.0%(annual average)in 2022,from a mean value of+0.9%in 2021.Monetary policy has tightened in respons

218、e to surging inflation.The Federal Reserve(“Fed”)increased its main policy interest rate by 425 basis points in 2022,while stepped down the pace of interest rate increases to 25 basis points in February 2023,bringing the target policy rate to a range of 4.5%to 4.75%.The Fed communicated that ongoing

219、 increases in the target range will be appropriate.According to the Summary of Economic Projections(“SEP”,December 2022),participants in the Federal Open Market Committee expect an increase in the Federal Funds rate to 5.1%by end-2023.In addition,net large-scale asset purchases ceased in March 2022

220、and the Fed began reducing US Treasury and agency Mortgage-Backed securities holdings in June 2022.The Fed will continue reducing its holdings by USD 95 billion per month,with the balance sheet standing at USD 8.4 trillion or 33%of 2022 GDP from USD 8.8 trillion in 2021.In Europe,the ECB increased a

221、ll three policy interest rates by 250 basis points in 2022 as inflation pressures have been amplified by the war in Ukraine,the recovery of the economy post COVID-19 and tight labor markets.The ECB stayed the course in February 2023 with another 50 basis points increase to 3.0%(Main Refinancing Oper

222、ations),3.25%(Marginal Lending Facility)and 2.5%(Deposit Facility Rate).According to the ECB,there is a strong commitment for an additional interest rate hike of 50 basis points in March 2023,and then it will evaluate the subsequent path of monetary policy.Regarding large-scale asset purchases,the E

223、CB discontinued net asset purchases under the Pandemic Emergency Purchase Programme(“PEPP”)in March 2022 and under the APP as of 1 July 2022.The ECB announced in December 2022 that APP repurchases will be reduced by 15 billion per month,on average,from March to June 2023,while the subsequent pace wi

224、ll be determined over time.The ECB will continue to reinvest in full the principal payments from maturing securities by applying flexibility across jurisdictions in the PEPP portfolio until,at least,the end of 2024.Moreover,the favourable cost of funding conditions for commercial banks,applicable un

225、der targeted longer-term refinancing operations(TLTRO III)ended,as expected,on 23 June 2022.In addition,the ECB adjusted upwards,in October 2022,the interest rates applicable to targeted longer-term refinancing operations(TLTRO III)to reinforce the transmission of policy rates to bank lending condit

226、ions,which tightened substantially further in the fourth quarter of 2022 for loans to businesses and to households,according to the ECB Bank Lending Survey,offering banks at the same time additional voluntary early repayment dates.As a result,the balance sheet of the Eurosystem has declined to 7.9 t

227、rillion or 59%of 2022 GDP from 8.6 trillion in 2021.At the same time,the ECB announced the TPI,to safeguard the smooth transmission of monetary policy across jurisdictions.The TPI can be activated to counter unwarranted,disorderly market dynamics that pose a serious threat to the transmission of mon

228、etary policy across the euro area.The ECB will be able to purchase public sector,mainly,bonds in jurisdictions experiencing a deterioration in financing conditions not warranted by country specific macroeconomic fundamentals.The scale of TPI purchases is not restricted ex ante,and it will depend on

229、the severity of the risks facing monetary policy transmission,while the ECB accepts“pari passu”treatment with respect to bonds purchased by the TPI.Potential purchases under the TPI will regard securities with a remaining maturity of between one and ten years.In addition,the member states in which t

230、he ECB may conduct purchases under the TPI should pursue sound fiscal and macroeconomic policies,whereas the following criteria will be applied in the decision process for the activation of the TPI:i)reliable fiscal policy and not being subject to an excessive deficit procedure;ii)absence of severe

231、macroeconomic imbalances;iii)fiscal sustainability and;iv)complying with the commitments submitted in the recovery and resilience plans for the Recovery and Resilience Facility and with the European Commissions country-specific recommendations.2022 saw a rise in risk aversion,as surging inflation,ce

232、ntral banks shift towards more restrictive stance and war-inducing uncertainty led risk premia and government bond interest rates simultaneously higher.Global equities recorded significant losses,with the Morgan Stanley Capital International All Country World Index(“MSCI ACWI”)declining by-19.8%in U

233、SD terms.In a similar vein,speculative grade corporate bond spreads widened both in the USD and the EUR spectrum by circa 170 basis points to 480 and 495 basis points,respectively,amid growing risks to the economic outlook.Nominal long-term Government bond yields increased in the United States by 23

234、7 basis points to 3.9%,while the inversion of the yield curve-short term interest rates above long-term bond interest rates-reignited recession concerns.German ten-year nominal Government bond yields rose by 272 basis points to 2.5%,their highest level since 2011,with euro area periphery Government

235、bond spreads widening modestly.The euro depreciated by-6%against the US Dollar to 1.07,sliding below parity in the second half of August,though appreciated in nominal trade-weighted terms by+1.5%in Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Ec

236、onomic and Financial Review Risk management Non-Financial Statement Corporate Governance Statement 25 2022.A deteriorating economic environment,particularly in China,took its toll on industrial metals prices,whereas energy and agricultural commodities increased,albeit solely due to gains in the firs

237、t half of the year.Overall,the S&P/GS Commodities Index increased by+26%in the first half,followed by losses of-14%in the second half of 2022.Having said that,investors risk appetite has improved since October 2022 due to falling inflation rates,lower natural gas prices and the significant relaxatio

238、n of COVID-19 restrictions in China,which paves the way for a complete re-opening of the economy.Global equity prices have moved higher by+7%since the start of 2023(“MSCI ACWI”),with banks at the forefront,and Global Aggregate bond prices have increased by+2.5%for the same period.2023 outlook Lookin

239、g forward,the cumulative tightening of financial conditions and the gradual unwinding of fiscal stimulus,is expected to slow down the growth rate of the global economy to a subpar+2.9%in 2023 from+3.4%in 2022,according to the International Monetary Fund(IMF).Risks are tilted to the downside,includin

240、g a faster-than-anticipated tightening of monetary policy due to persistently elevated inflation that fails to engineer a soft landing for the global economy.The prolonged war in Ukraine remains a source of concern,with any escalation jeopardizing to disrupt gas supplies to Europe,hurting,initially,

241、the industrial sector of the economy and pushing up global energy prices,fueling inflation further.Moreover,the emergence of new COVID-19 variants could cause renewed economic and supply-chain disruptions.On the positive side,a potential unwinding of policy-related and international trade-related un

242、certainties,could improve the pace of growth of the global economy,as balance sheets of households and corporates are lacking the large imbalances that have been built ahead of the Global Financial Crisis.Moreover,the earlier-than-expected re-opening of the Chinese economy implies,inter alia,a faste

243、r recovery for the international trade,amid easing supply bottlenecks.World GDP Growth Greek Economy Resilient demand,high private sector adaptability and fiscal overperformance in 2022 set a solid starting point for 2023 The upward trend in economic activity has been sustained until end-2022,settin

244、g a favorable starting point for 2023,with the Greek economy successfully responding to the challenges of the energy/inflation crisis.Employment increased by 5.4%y-o-y in 12M.22 and the unemployment rate fell to a 13-year low of 11.6%in December 2022,with some first signs of modest wage increases.Th

245、e adaptability and resilience of the competitive corporate sector to sharply rising production costs,combined with strengthened pricing power,on the back of supportive demand conditions,led corporate profits(gross operating surplus,“GOS”)to a 10-year high in 9M.22,of 22 billion.The revival of touris

246、m and services activities in general,following the full lifting of COVID-19 restrictions,brought revenue back to their all-time high of 2019.Bank lending growth to the private sector accelerated to 6.3%y-o-y in December 2022 a 14-year high(since July 2009)on the back of a new surge in credit to non-

247、financial corporations(+11.8%y-o-y)in December 2022.House prices increased by 11.2%y-o-y in 3Q.22,posting a cumulative appreciation from their lowest point in 3Q.17(during the 10-year crisis)of 39.3%.Economic growth in Greece is expected to exceed the euro area average in 2023,despite a considerable

248、 slowing in economic growth in European economies,buoyed by several resilient supportive factors.Persistent energy-related challenges and underlying inflation,high geopolitical uncertainty,the lagging impact of the ongoing monetary policy tightening and limited margins for additional fiscal support

249、shape the background of key risk factors for 2023.The Greek economy remained on a strong growth trend in 9M.22 and is expected to have outperformed the euro area average by a wide margin in FY.22,for a second consecutive year(GDP growth of 6.25.95.33.42.13.52.91.40.70.01.02.03.04.05.06.07.0WorldUSEu

250、ro areaWorld Real GDP Growth202120222023%Source:IMF,January 2023Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and Financial Review Risk management Non-Financial Statement Corporate Governance Statement 26 5.9%y-o-y in 9M.22,compared with

251、 4.0%for the euro area average and estimated FY.22 growth of 5.3%and 3.5%,respectively)3.Activity losses related to the pandemic have been rapidly reversed,with FY.22 GDP,in constant price terms,expected to exceed its 2019 level by 3.7%4.The economy exhibited remarkable resilience to the severe ener

252、gy-related headwinds and the rapid transmission of imported inflation pressures,capitalizing on i)the adaptability of the private sector;ii)the revival of tourism and services activities in general;iii)the additional fiscal support against energy cost pressures,which exceeded the euro area average i

253、n 9M.22;and iv)the substantial liquidity reserves of financially sound firms and households.GDP growth in euro area economies(9M.22,in constant price terms)Private consumption increased by 9.5%y-y and gross fixed capital formation by 10.2%in 9M.22,with the latter climbing to an 11-year high of 13.6%

254、of GDP5.Labour market conditions remained highly supportive,offsetting part of the inflation hit on disposable income.Employment increased by 5.4%y-y in 12M(+79K additional employees y-y in December and+207 on average 12M)and the unemployment rate fell to a 13-year low of 11.6%in December6.A modest

255、adjustment in total private sector wages,bolstered by a 9.7%increase in the minimum wage,which is estimated at c.2.5-3%7.3 Sources:ELSTAT,Gross domestic product,3rd Quarter 2022&European Commission,Autumn Forecast,November 2022&NBG Economic Analysis estimates 4 Source:NBG Economic Analysis estimates

256、 5 Sources:ELSTAT,Gross domestic product,3rd Quarter 2022 6 Source:ELSTAT,Labour Force Survey(monthly estimates),December 2022 7 Source:Ministry of Labour,Ministerial decision n.38866/2022&n.107675/2021&NBG Economic Analysis estimates Labor market trends Positive wealth effects and increasing non-wa

257、ge income supported household spending.Residential real estate prices,which account for more than 80%of household wealth,rose by 10.4%y-o-y in 9M.22(+11.2%y-o-y in 3Q.22),recording a cumulative appreciation of nearly 40%between 3Q.17 and 3Q.22,thus reducing the distance from their all-time high in 2

258、008 to c.-20%8.Moreover,the mixed income of households(including proceeds from entrepreneurial activity,rental,interest,and dividend income)is estimated to have increased at a double-digit pace for a second consecutive year(12.2%in 9M.22),at the highest level since 2009 in EUR billion terms9.Gross f

259、ixed capital investment increased in 9M.22(by a solid 10.2%y-o-y),rising to an 11-year high of 13.7%of GDP,whereas the capacity utilization rate in industry remained significantly above its 10-year average in 12M.22,with survey data on current production trends and new orders remaining at expansion

260、territory,above their respective long-term average levels,despite a modest weakening compared to 9M.2210.Business turnover increased by 20.5%y-o-y in November 2022(+42%in 11M.22 or+102 billion y-o-y in the same period)and exhibited strong growth,even when excluding industrial sectors affected by ene

261、rgy-price volatility such as fuels and electricity(+19.8%y-o-y in November and 27%in 11M.22)11.Similar,trends are observed in the euro area suggesting that the impact of energy and inflation shocks on activity has proven less severe than initially feared until end-2022.8 Source:Bank of Greece,Indice

262、s of residential property prices,3rd Quarter 2022 9 Source:ELSTAT,Quarterly Non-Financial Sector Accounts,3rd Quarter 2022 10 Source:ELSTAT,Gross fixed capital formation,3rd Quarter 2022&Bank of Greece,Bulletin of Conjunctural Indicators,November-December 2022&European Commission Business,and consum

263、er survey database,December 2022 11 Source:ELSTAT,Evolution of Turnover of Enterprises,November 2022 and 3rd Quarter 2022 024681012IEPTMTSIPLCYELESATNLITEABEFRLTLUFILVDESKReal GDP(%,annual change 9M.22)%,y-o-ySource:European Commission051015202530-16-12-8-4048121620Dec-12Aug-13Apr-14Dec-14Aug-15Apr-

264、16Dec-16Aug-17Apr-18Dec-18Aug-19Apr-20Dec-20Aug-21Apr-22Dec-22Employment growth(left axis)Unemployment rate(right axis)%y-o-ySource:ELSTATBoard of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and Financial Review Risk management Non-Financial St

265、atement Corporate Governance Statement 27 GDP:level in billion euro&annual change Profits from entrepreneurial activity,as measured by the economy-wide gross operating surplus,excluding mixed income,increased at a 10-year high of 45 billion in 9M.22,exhibiting the highest growth rate in 20 years12 b

266、oosted by strong demand and economic activity.Gross operating surplus&mixed income and labor compensation(national accounts)The buoyancy of business profits reflects the adaptability and resilience of the competitive corporate sector to sharply rising production costs,combined with strengthened pric

267、ing power,aided by favourable demand conditions.This encouraging performance has been achieved despite a strongly negative terms-of-trade shock which,has been combined with strong demand,leading to a further widening of the current account deficit to the highest level since 2011(-8.5%of GDP in 11M.2

268、2).This deficit is expected to narrow gradually,as global commodity prices start to subside and import-demand normalizes,following a spike in 2021-22,offsetting the pressure from a potential weakening in 12 Source:ELSTAT,Gross domestic product,3rd Quarter 2022 13 Source:Bank of Greece,Balance of Pay

269、ments(monthly data),November 2022 external demand.Moreover,FDI inflows to the Greek economy climbed to a new all-time high of 6.2 billion in 11M.22,already exceeding the FY.21 record of 5.4 billion.This trend sets the stage for additional business and economic transformation going forward as well as

270、 for increased,growth-enhancing,gross fixed capital formation.A part of these inflows(1.3 billion in 9M.22)has been directed to real estate investments,adding strength to the market13.Greece:Total foreign direct investment(FDI)inflows Leading indicators of economic activity have exhibited higher-tha

271、n-expected resilience in 4Q.22 and January 2023.Economic sentiment increased to a 4-month high of 104.9 in January 2023(101.3 in 4Q.22),exceeding the euro area average for a 9th consecutive month,and reversing the sudden deterioration in October 202214.Industrial and retail trade confidence posted h

272、ealthy m-o-m increases,services exhibited resilience,whereas consumer confidence returned at pre-war levels in December 2022 and January 2023 with an improvement in households assessment of their financial situation in 2023 and a drop in consumers inflation expectations to the lowest point since Feb

273、ruary 2022.Economic sentiment indicator 14 Source:EU Commission,Business,and consumer survey database,December 2022-20-15-10-5051015203436384042444648504Q.181Q.192Q.193Q.194Q.191Q.202Q.203Q.204Q.201Q.212Q.213Q.214Q.211Q.222Q.223Q.22%,y-o-ybillionGDP(constant prices,left axis)GDP growth(y-o-y,right a

274、xis)Source:ELSTAT-15-10-50510152020022004200620082010201220142016201820209.22-15-10-505101520y-o-yGross operating surplus&mixed incomeTotal compensation of employeesSource:ELSTAT01234567200320042005200620072008200920102011201220132014201520162017201820192020202111M.22Total FDI inflows in Greece(bn)b

275、illionSource:Bank of Greece50607080901001101201305060708090100110120130May-19Sep-19Jan-20May-20Sep-20Jan-21May-21Sep-21Jan-22May-22Sep-22Jan-23GreeceEuro areaindex*Horizontal lines refer to 15-year averagesSource:European CommissionBoard of Directors Report for the year ended 31 December 2022 Key Hi

276、ghlights Transformation Program Economic and Financial Review Risk management Non-Financial Statement Corporate Governance Statement 28 Greeces responsiveness to mounting energy challenges was remarkable,reflected in a 14.3%y-o-y decrease in electricity demand in December 2022(-11.2%y-y on average s

277、ince the beginning of the war in Ukraine)15,as well as by a 19%y-y decline in natural gas import volume for domestic consumption,combined with a swift substitution of Russian gas for LNG in the national energy mix(drop in Russian NG share in total NG imports by 33%y-o-y in 4Q.22).16 Energy&food cont

278、ribution in CPI growth(year-over-year)Consumer price inflation,as measured by the Harmonized Index of Consumer Prices(“HICP”),has showed signs of slowing(8.6%y-o-y in 4Q.22 and 7.6%in December 2022,compared with 11.5%in 3Q.22),declining below the euro area average of 10%y-o-y in 4Q.22,for the first

279、time since end-2021.This improvement primarily reflected falling energy prices with early signs of stabilization in core inflation in December 2022(deceleration to 5.9%y-o-y from 6.8%in November 2022),although food price growth accelerated to a new high of 15.4%y-o-y in December 2022(12.8%y-o-y in 3

280、Q.22)17.The ongoing deceleration in imported commodity price inflation and lower energy prices(brent crude oil at 89 USD/barrel in 4Q.22 and 82 USD/barrel in January 2023,compared with 101 USD/barrel in 3Q.22,and natural gas at 95/MWh in 4Q.22 and 62/MWh in January 2023,compared with 200/MWh in 3Q.2

281、218)bode well for a slowing in CPI inflation,in 2023,to an estimated average of 5.6%despite the persistence of core inflation(5.4%y-o-y in 4Q.22 and 2.8%in 9M.22)19.Strong cyclical tailwinds bolstered the fiscal performance vis-vis the upwardly revised fiscal targets for 2022,despite the additional

282、energy support measures in 4Q.22 and early 2023.Fiscal support to households and firms in FY.22 is estimated at c.11.5 billion,in gross value terms,mostly comprising of subsidies to electricity bills and 15 Source:Independent Power Transmission Operator(ADMIE),Monthly Energy Bulletin,December 2022 1

283、6 Source:DESFA,Press Releases,January 2021&January 2022 17 Source:European Commission,Harmonized Indices of Consumer Prices database,December 2022 18 Sources:Federal Reserve Bank of St.Louis&European Energy Exchange databases other energy-related support20.State Budget primary deficit stood at 3.3%o

284、f GDP,0.9 pps(1.8 billion)in 12M.22 below the annual Budget 2023 target(-2.5%of GDP lower compared with 12M.21 or-36%y-o-y)pointing to further upside risks for 2022 fiscal outcome,which is going to be finalized in April 2023.The Government Budget for 2023 targets to a 0.7%of GDP primary surplus,from

285、 an estimated primary deficit of-1.6%in 2022.This target is achievable with relatively limited impact on activity,due to the fiscal and macroeconomic overperformance in 2022 and related positive carryover effects.Greeces public debt as%of GDP declined by an outstanding 24.7 pps,on an annual basis,in

286、 3Q.22 the largest improvement among euro area countries to 178.2%of GDP.For 2023,a further decline to 159.3%is expected according to the 2023 Budget21.Primary and total general government balance(ESA 2010)Despite the turnaround in the global monetary policy cycle,financial conditions in Greece rema

287、ined favorable,with bank credit growth at 9.1%y-o-y in December 2022,led by credit to corporations(+12.3%y-o-y),outpacing the euro area average since 2Q.22,for the first time since 2011(excluding the 2020 spike which has been driven by COVID-19-related State guarantee schemes)22.19 Sources:Monthly e

288、volution of Goods,Services and Core Index,December 2022&NBG Economic Analysis estimates 20 Source:Hellenic Ministry of Finance,Budget 2023&NBG Economic Analysis estimates 21 Source:Hellenic Ministry of Finance,Budget 2023 22 Sources:Bank of Greece,Monetary and Banking Statistics,December 2022&Europe

289、an Central Bank,Statistical Data Warehouse,December 2022-4-202468101214-4-202468101214Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22y-o-yppsOtherFood contribution in CPI(pps,left axis)Fuel contribution in CPI(pps,left axis)Electricity contribution in CPI(pps,left axis

290、)CPI inflation(y-o-y,right axis)Source:ELSTAT-16-12-8-404-16-12-8-4042007200820092010201120122013201420152016201720182019202020212022e2023fGeneral government primary balance(%GDP)General government total balance(%GDP)%GDPsurplusdecifitSources:ELSTAT,Hellenic Ministry of Finance,Eurostat,IMFBoard of

291、Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and Financial Review Risk management Non-Financial Statement Corporate Governance Statement 29 Net bank lending,net corporate bond issuance and bank deposits(cumulative increase)Greek banks deposits a

292、nd loans recorded further considerable increases in 2022.Private sector deposits increased by 8.6 billion in 12M.22,with the outstanding balance reaching a 12-year high of 189 billion in total,despite the further strengthening of private consumption.Bank lending growth to the private sector accelera

293、ted to 6.3%y-o-y in December 2022 a 14-year high(since July 2009)buoyed by a new surge in credit to non-financial corporations to 11.8%y-o-y(the highest pace for 2022 next to the+12.3%in September).The cumulative net(of repayments)flow of bank loans to non-financial corporations in 12M.22 amounted t

294、o 6.8 billion,which is the highest annual reading in 14 years,aside from the State guarantee driven rebound in 2020(6.7 billion)23.10-year Greek government bond yields rose to 4.1%in H2.22,from 2.6%in H1.22 and 0.9%on average in 2021,due to the tightening in monetary policy conditions and a broad-ba

295、sed re-rating of sovereign bond prices to the new inflation conditions.The spread over bund increased to 240 bps in H2.22 from 220 bps in H1.22,declining further to 206 bps in January 2023,with the yield of the German 10-year bond also increasing to 1.8%in H2.22 from 0.6%in H1.22 and-0.33%in 2021.Gr

296、eeces sovereign securities remained eligible in the context of flexible reinvestments of capital of maturing bonds under PEPP(after its expiration in March 2022).The combined impact of the above-described supportive factors underpinned Greeces resilient growth performance in 2022,with the annual GDP

297、 growth expected to exceed 5%according to NBG,official sector and consensus estimates,accompanied by increasingly positive economic spillovers across firms and households.23 Source:Bank of Greece,Monetary and Banking Statistics,December 2022 24 Source:European Commission,Recovery and Resilience scor

298、eboard Gross 10-year Greek Government bond yield&spread over bund Greek Macro Outlook More Resilient than the euro area average in a Challenging 2023 Greeces growth performance in the current year,but also in the medium term,is expected to be supported by the following factors:Solid investment growt

299、h,on the back of a strong pipeline of private investment and increasing impact of the Recovery&Resilience Facility(“RRF”).Gross fixed capital formation is expected to rise at a double-digit pace,for a 3rd consecutive year,bolstered by positive demand prospects,high capacity-utilization rates and str

300、ong profitability.Moreover,the impact from the investment of RRF will start to show from 2023 onwards,due to time lags between the funds absorption(11.1 billion of grants and loans,cumulatively,until early-2023,corresponding to about 1/3 of total available funding for Greece)and the final capital sp

301、ending24.Similarly,the 14 billion of inward Foreign direct investment(“FDI”)investment in 2020-22 sets the stage for a further strengthening of fixed capital formation25.The positive momentum of services activities and especially tourism,which are less sensitive to terms-of-trade shocks,input costs

302、and personal income fluctuations.The experience of previous years suggests that external demand for tourism services especially from euro area countries exhibits resilience to economic variability but is highly sensitive to geopolitical or health-related risks.Moreover,the pricing power of Greek fir

303、ms for 2023 has been significantly strengthened by the outstanding performance of Greek tourism in 2022,which bodes well for a further quality upgrade of related services looking forward.25 Source:Bank of Greece,Balance of Payments(monthly data),November 2022-10010203040506070-40481216202428Dec-18Fe

304、b-19Apr-19Jun-19Aug-19Oct-19Dec-19Feb-20Apr-20Jun-20Aug-20Oct-20Dec-20Feb-21Apr-21Jun-21Aug-21Oct-21Dec-21Feb-22Apr-22Jun-22Aug-22Oct-22Dec-22Corporate bonds(bn,cumulative net flows,left axis)Credit to non-financial corp.(bn, flows,left axis)Private sector deposits(bn,cumulative net flows,right axis

305、)Sources:Bank of Greece,Thompson Reutersbillionbillion0,01,02,03,04,05,00,01,02,03,04,05,0Nov-20Jan-21Mar-21May-21Jul-21Sep-21Nov-21Jan-22Mar-22May-22Jul-22Sep-22Nov-22Jan-2310yr Government bond yield10yr Government bond spread over bund%Source:Bank of GreeceBoard of Directors Report for the year en

306、ded 31 December 2022 Key Highlights Transformation Program Economic and Financial Review Risk management Non-Financial Statement Corporate Governance Statement 30 The underlying fiscal stance will remain supportive towards the most vulnerable population groups and SMEs,to cushion the impact of energ

307、y price volatility and core inflation on their disposable income.Substantial financial resources,committed in the 2023 Budget,under far more conservative forecasts of energy price trends,compared with the latest market developments.Moreover,the estimated overperformance in 2022 implies a stronger po

308、sitive carryover effect,increasing the countrys fiscal capacity.The return to a primary surplus of 0.7%of GDP26 will be based on supportive cyclical factors.Modest wage increases,for the first time since the beginning of the Greek crisis.The strength of the labor market recovery,in conjunction with

309、the increase in the minimum wage in 2022,supplemented by an additional hike in 2023 of the order of 5.5%to 9.5%,could entail an adjustment of average private sector hourly wage of c.4-4.5%y-o-y in 2023,following an estimated 2-3%in 202227.The transmission to average private sector wages will be part

310、ial,and weaker than the euro area average,preserving Greeces cost competitiveness gains in the previous decade.However,growing concerns,over the impact on 2023 growth,of protracted energy-related uncertainty,persistent core inflation,and the ongoing tightening of monetary policy,led to a significant

311、 downward revision of official and private sector forecasts.Although energy challenges were more manageable in recent months,due to a combination of slowing demand,supply-side adjustments,and favorable weather conditions in Europe,it will take time for the European energy market to reach a new stabl

312、e equilibrium.The ambitious EU climate agenda,along with still sizeable geopolitical risks and heightened uncertainty regarding the speed of demand recovery in China,could also entail additional energy risks in 2023 but also prompt more ambitious restructuring efforts and new investments.Looking for

313、ward,although headline inflation has shown signs of moderation recently,due to the easing of energy and supply-chain pressures by end-2022,underlying inflation pressures remain persistent due to the extreme intensity of the original shock and its complex transmission process through the production c

314、hain.Moreover,fiscal policy is expected to play a less active role in supporting activity,as most economies attempt to rebalance their fiscal positions,following three years of decisive expansion,in order to cushion the impact of COVID-19 and energy-related shocks.The inflation drag on disposable in

315、come(including lagged effects from 2022),will remain sizeable in Greece during 2023,despite the expected moderation in inflation,translating into a material slowing in consumer spending which will also tend to weaken the firms pricing power from their current robust levels.The ongoing monetary polic

316、y tightening by the ECB will be fully transmitted to lending costs,over the course of 2023,weighing on the financial 26 Source:Hellenic Ministry of Finance,Budget 2023 27 Source:NBG Economic Analysis estimates&Market Sources position of households and firms as well as on their willingness to finance

317、 their consumer and investment decisions through new lending.However,the effective interest rates in the Greek economy will remain below their long-term averages with the policy rate increases partly offset by declining country-specific risk premia and a further risk re-rating of the economy.Overall

318、,the Greek economy seems well positioned to deal with the above challenges and continue outperforming its euro area peers,capitalizing on sustainable growth catalysts and the strong momentum built in 2021-22.For 2023,the growth rate is expected to range from 1.0%-2.0%,according to NBG forecasts and

319、the latest official and private sector consensus estimates,being surrounded by a broadly symmetric balance of risks,assuming no further escalation of geopolitical stress.It should be noted that economic activity in 4Q.22 seems to have held up better than expected in both Greece and the euro area eco

320、nomies,possibly setting a higher starting point for 2023.Furthermore,there are upside risks from a better-than-expected energy price scenario,as Greece had been more negatively affected by the energy shock during 2022,due to its relatively high dependence on energy imports as well as on commodity in

321、tensive inputs,which rallied in 2022.Current trends in energy and non-energy commodity markets point to a significant easing of pressures in most segments,compared to the estimates made in 2H.22.A crystallization of this positive trend could pose an upside risk for 2023 growth.On the other hand,a re

322、currence of energy tensions would bring the Greek economy to a disadvantaged position entailing additional downside risks for economic growth,given the decreasing capacity for large scale fiscal interventions.The Macroeconomic Environment and the Banking Sector in North Macedonia28 Against a challen

323、ging backdrop,North Macedonia saw GDP growth slowing down markedly in 2022,with economic activity returning to pre-COVID-19 levels,albeit with a significant delay compared with regional economies GDP growth is estimated to have eased to 2.4%in 2022 from 3.9%in 2021,a performance weaker than that of

324、regional economies and the EU(up by an estimated 4.2%and 3.6%,respectively).Gross capital formation was the main driver of economic growth,reflecting strong build-up in inventories,in the face of record-high global energy and food prices,as well as higher public investment.At the same time,following

325、 the re-opening of the economy from COVID-19 restrictions,and thanks to bold policy support,private consumption added markedly to economic growth,with its contribution,however,shrinking significantly compared with 2021,due,inter alia,to surging 28 Source:Published data from the Central Bank,the Nati

326、onal Statistical Agency and the Ministry of Finance of the country and processed by the NBG.Board of Directors Report for the year ended 31 December 2022 Key Highlights Transformation Program Economic and Financial Review Risk management Non-Financial Statement Corporate Governance Statement 31 infl

327、ation.Unsurprisingly,against the backdrop of solid domestic demand and persistent global supply disruptions,net exports remained a large drag on overall growth.GDP Growth&Inflation Amid higher global energy prices,external accounts deteriorated markedly in 2022,with the current account deficit widen

328、ing to an estimated 7.5%of GDP from 3.1%in 2021.Importantly,stronger non-debt generating foreign direct investment inflows,together with the proceeds from sovereign debt issuance and financing support from the EU and the IMF,helped to more than cover the external financing gap,leading FX reserves to

329、 rise by 220 million to 3.9 billion in December 2022(covering c.4 months of imports of goods and non-factor services).The performance of the banking sector remained strong in 2022,despite the challenges lying ahead Released figures show that the banking sectors profits increased to 174 million(annua

330、lised)in the first three quarters of 2022 from 157 million the same period in 2021,with the(annualised)return-on-average-equity ratio firming slightly to a 13.7%,at the same time,on stronger pre-provision operating income.Indeed,net interest income rebounded in the first three quarters of 2022,in li

331、ne with solid growth in business volumes(credit to the private sector increased by 9.7%y-o-y in September against a rise of 6.3%in September 2021),while net non-interest income continued to grow at a robust pace,at the same time,driven by net fees and commission income and FX gains.Stronger net oper

332、ating income was only partly offset by higher provisioning charges.Indeed,with asset quality pressures already building up(the ratio of non-performing loans to total gross loans rose slightly to 3.3%in September from a low of 3.1%in early-2022)against an increasingly challenging economic backdrop,ba

333、nks increased provisions markedly in the first three quarters of 2022,albeit from a low base.Importantly,the sector remained well-capitalised,with the capital adequacy ratio improving slightly to 17.7%in September 2022,well above the minimum regulatory threshold of 8.0%.Banking System Fundamentals Amid still elevated inflation,GDP growth is set to remain subdued in 2023,in line with weakening priv