National Bank: Pavlos Mylonas Shifts Strategy – From Surplus Capital to Shareholder Value

The National Bank of Greece is entering a new phase of strategic maturity, with CEO Pavlos Mylonas steering a different path for managing €2 billion in surplus capital.

During the Q3 2025 results briefing, Mylonas outlined a vision of a bank that invests prudently, rejecting the “easy” route of acquisitions and choosing organic growth as the driver of sustainable shareholder returns.

Performance – Stability – Growth

The National Bank closed the first nine months of 2025 with net profits approaching €1 billion and a ROTE of 15.6%, among the highest in Europe.With a CET1 capital ratio of 19%, the bank has one of the strongest capital positions in the Eurozone.

“We seek value creation, not transactions for the sake of transactions,” Mylonas emphasized, dismissing acquisition rumors both in Greece and abroad. This statement encapsulates his philosophy: return on investment without taking unnecessary risks.

Alignment with European Standards

The management’s objective is convergence with the European average in shareholder rewards, attracting institutional investors and reinforcing international confidence in the National Bank.

The interim dividend of €200 million, scheduled for November 14, reflects a policy of returning value while maintaining sound capital management, with the final payout ratio to be confirmed with the year-end results.

CFO Christos Christodoulou highlighted that the bank has already integrated a 60% payout ratio into the 2025 planning, positioning it as a benchmark for Greek banking.

Surplus Capital with Purpose

With approximately €2 billion in surplus capital, the National Bank has the strength and discipline not to use it recklessly. Mylonas clarified: “There is no acquisition today that would require significant capital”, emphasizing that priority is value creation, not showy deals.

This approach demonstrates both discipline and foresight: the bank prefers internal investment, strengthening efficiency, technology, and human capital, rather than pursuing short-term appearances.

Development Momentum and Organic Expansion

The Greek economy, Mylonas noted, “is on a resilient growth path”, and the National Bank is following suit.Its loan portfolio increased 12% year-on-year, with €2 billion in ongoing approved disbursements across energy, tourism, and infrastructure projects.

Liquidity remains strong, with an LCR of 249% and a loan-to-deposit ratio of 64%, providing substantial room for expansion.

Management expects similarly strong growth in 2026, supported by investments, public works, and private sector dynamism. “The bank performs well when the economy performs well — and the economy is performing very well,” the CEO affirmed confidently.

Discipline and Efficiency

Despite a 6.5% rise in costs, the National Bank maintains expense control, focusing on digital infrastructure and human capital.The voluntary exit program, scheduled for early 2026, will offset part of operating costs, keeping efficiency aligned with long-term targets.

The stabilization of net interest income (NII) and the conservative management of securities strengthen the bank’s credibility profile.Deposit costs dropped to 0.29%, while the release of provisions creates additional space for improving returns.

Mylonas’ Philosophy: “From Capital to Value”

Pavlos Mylonas leads a new generation of banking governance, seeing capital not as a “reserve” but as a tool for growth. He embodies the principle that the National Bank must remain strong, flexible, and reliable, avoiding excesses and superficial moves.

“Value is created through consistency and results, not through acquisitions,” he told the market.

The National Bank of Greece is entering a period of mature growth and strategic confidence. Pavlos Mylonas does not seek to impress; he seeks to deliver lasting value — for shareholders, the economy, and citizens.

At the National Bank under Mylonas, capital is not “spent”; it is invested where it multiplies trust and performance.

Source: pagenews.gr