NBG CEO rules out share capital increase prospects

National Bank of Greece (NBG) and chairman of the executive committee Pavlos Mylonas on Friday ruled out the possibility of a share capital increase for the systemic bank, the oldest and most recognized in the country, while adding that the target is to distribute a dividend to shareholders soon.

 In addressing a regular general assembly of shareholders in Athens, the Greek banking executive also expressed his optimism over the course of the Greek economy and his banking group’s future in the coming years.

Additinoally, he emphasized that the current juncture provides Greece with a major opportunity to change its production model and exploit investments.

Shareholders also formally elected former finance minister Gikas Hardouvelis as chairman of the board of directors, replacing Costas Mihailidis, who term ended.

Turning to the primary and standing problem plaguing Greece’s lenders, namely, NPLs, Mylonas reiterated that NBG’s commitment and target remains a reduction under 5 percent of total lending in 2022.

According to figures presented by the NBG CEO, “bad debt” was cut by 6.5 billion euros in 2020, with the NPEs index dropping to 13 percent in 2020, down from 32 percent at the end of 2019.

In terms of the four billion euros in NPLs still on the bank’s balance sheet, Mylonas referred to a higher provision forecast by 65 percent, meaning the actual exposure is 1.5 billion euros.