2025 EU-wide stress test

National Bank of Greece S.A. announces the successful completion of the 2025 EU-wide stress testing exercise, led by the European Banking Authority (EBA) and conducted in cooperation with the European Central Bank (ECB) and the national supervising authorities. The exercise was conducted under the common methodological rules set out by EBA, and macroeconomic and market scenarios defined by the European Systemic Risk Board (ESRB). NBG participated in the 2025 EU-wide stress test as part of the EBA sample of euro-area’s largest banks.
Within the above context, the stress test was based on a static balance sheet approach, thus factoring in NBG Group’s financial and capital position of 31.12.2024 as a starting point and conducting a 3-year horizon stress simulation (for the period 2025-27), under a Baseline and an Adverse scenario.  The Adverse scenario reflects a hypothetical, severe escalation in geopolitical tensions, accompanied by significant new trade restrictions, having strong adverse effects on private consumption and investments, both within Greece and globally.  Under this scenario, a set of adverse financial and economic assumptions has been incorporated to simulate a severe economic impact across the EU, entailing substantial real GDP contraction, persistently high inflation and other associated financial shocks. Specifically for Greece, the scenario assumes a cumulative real GDP decline of -6.1% over three years, elevated inflation at 11.6% (HICP), and substantial declines in real estate values, with residential and commercial property prices falling by -22% and -29%, respectively.

Under the commonly applied methodology, in the Adverse scenario:

• National Bank of Greece’s fully loaded (FL) CET 1 ratio settled at the end of 2027 just 0.50pps lower than the starting point of the exercise (restated for the introduction of CRR3), exhibiting the 2nd best result among the 51 Significant Institutions directly supervised by the SSM (and the 5th among the 64 banks of the total EBA sample). 
• In the domestic banking space, this outcome positions NBG as the top performer, with Greek peers reporting a 3-year depletion of 1.81pps on average. 
• Considering the trough year, NBG’s maximum depletion stands at 1.40pps, being 0.58pps better than domestic peers’ average.
The Baseline scenario resulted in a capital accretion of 3.67pps over the 3-year horizon.

The result of the 2025 EU-wide stress test demonstrates NBG Group’s resilience to shocks and ability to maintain solid capital levels, even in conditions of severe economic stress. Comparing the performance to previous stress test exercises, NBG has achieved notable progress over the past years in strengthening its balance sheet, despite globally challenging economic conditions. Specifically, the 2025 stress test outcome reflects the successful NPE deleveraging Strategy, the build-up of adequate capital buffers as well as the generation of sustainable profitability, underpinned by strong core income and efficient cost management.

Furthermore, it is noted that National Bank of Greece S.A. Group CET1 ratio on 30 June 2025 stood at 18.9%, up +60bps ytd (including period profits and net of a 60% pay out accrual).