PRESENTATION 9M.17 GROUP FINANCIAL RESULTS

Transcription

1 PRESENTATION 9M.17 GROUP FINANCIAL RESULTS November November 2017

2 TABLE OF CONTENTS 01 HIGHLIGHTS 02 FINANCIALS 03 ASSET QUALITY 04 LIQUIDITY 05 APPENDIΧ

3 01. H I G H L I G H TS Note: as of Q the operations of two domestic subsidiaries, namely Olympic SA (Avis Greece) and Imithea SA (Henry Dunant hospital) were recorded as discontinued. On top, as of Q the Bank s operations in Serbia (Piraeus Bank Beograd and the local leasing subsidiary) have been also classified as discontinued.

4 01 Industrial Production Improving 1.1 IMPROVING EXTERNAL ENVIRONMENT Economic Sentiment Indicator (ESI) & PMI Manufacturing Point to Improving GDP Dynamics Industrial Production YoY % trend line (2008-Q3.17) Economic Sentiment Indicator PMI Manufacturing Tourism as a Key Pillar of the Economy Real Estate Prices Stabilizing (change yoy %) 25.0 Tourism Revenues YoY % trend line (2010-Q3.17) House Prices Office Prices (Athens) Retail Prices (Athens) Q % yoy Sources: ELSTAT, BoG, Bloomberg, Piraeus Bank Economic Research 4 HIGHLIGHTS

5 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/ POSITIVE OUTLOOK FOR THE GREEK ECONOMY Real GDP Expected to Stay on a Growth Trajectory Τhe recovery of a number of economic activity indicators ranging from tourist arrivals, to employment, retail sales and industrial production creates significant upside potential to our outlook Based on seasonally adjusted data, the unemployment rate fell to 20.6% in August, while Jan.-Aug. average stood at 21.7%. Correspondingly employment increased by 2.1% on an annual basis Going forward, the successful implementation of the outstanding programme reviews, as well as the maintenance of economic stability and credibility are of paramount importance so that the Greek economy will be able to capitalize on the growing positive momentum Greece is projected to achieve the primary balance target in excess of 3.5% of GDP in Real GDP returns on a Growth Trajectory Unemployment rate to remain clearly on a downward trend QoQ % change YoY % change Unemployment Rate outlook outlook Sources: ELSTAT, DG ECFIN, Piraeus Bank Economic Research 5 HIGHLIGHTS

6 M.2017: ACCELERATION IN EXECUTION ESPECIALLY WITH REGARDS TO IMPROVING ASSET QUALITY Operating profitability improving P&L Core banking income comprising NII and fees, at 1,593mn,+1% yoy Operating costs at 870mn, -5% yoy Cost to income ratio at 51% from 56% a year ago Pre provision income at 844mn in 9M, +16% yoy ΝPE & NPL stock down for 8th consecutive quarter in Q3 NPEs NPLs NPE stock down to 33.8bn, - 2.5bn yoy NPE operational target attained for 5th quarter in a row NPE formation at - 0.3bn, NPL formation at - 0.5bn (both pre write-off) NPL stock down to 22.1bn, - 3.3bn yoy, at 36% vs 39% a year earlier Increased deposit inflows in Q3; decreased Eurosystem reliance Liquidity Deposits in Greece + 0.9bn in Q3, continuing the upward trend started in Q2 Loans to deposits ratio at 109% down from 113% in Q2; 2nd best domestic market level Eurosystem reliance at 12bn, - 9bn ytd; ELA below 6bn in late November; 2nd best domestic market level Issue of a 5Y 0.5bn covered bond (3M euribor +250bps) in Oct.17; interbank repos at 1.6bn currently 6 HIGHLIGHTS

7 SIGNIFICANT PROGRESS AGAINST AGENDA 2020 PLAN Maximising value from core businesses while accelerating clean-up of legacy issues De-risk Balance sheet PLU reduced RWA size by 0.6bn qoq and by 1.7bn in the past 6 months, while CET-1 ratio increased by 27bps NPE & NPL reduced. Agenda 2020 set targets to < 20bn for NPEs & < 10bn for NPLs in 2020 Disposal of AVIS Greece, Serbian banking operations and Hellenic Seaways stake 2nd public open e-auction via in Oct.17 1 more auction in Q4.17, more than 6 in 2018 Optimizing resources, while investing in digitalization Resize & focus OpEx -5% yoy, domestic cost to income at 48%, moving towards the medium-term target for <45% in 2020 Further rationalization of domestic network, -32 branches vs. Dec.16 to come down <620 by year-end Additional optimization of Greek FTEs, -215ytd to reach level of 13,200 by year-end 2017 Migration of transactions to digital channels with target of 78% by end-2017 well on track (76% in Sep.17) Maintaining leading position in business lending, with a focus on SMEs Profitable & sustainable business model Core Bank posted 311mn net profit in 9Μ, RoA of 1.1%, NIM at 309bps and net fees at 87bps over assets New loan generation slightly up for SME book, aiming at > 1bn new loans in 2018 from 0.6bn in 2017 Further reduction ofela balance, aiming atfull elimination by year-end 2018 Recent issue of covered bond paves the way for increased market access retuning to normal liquidity conditions 7 HIGHLIGHTS

8 01 Piraeus Bank 1.5 RING-FENCING AND DOWNSIZING LEGACY ASSETS Business model based on efficiency & risk-adjusted returns Piraeus Core Bank Decisive action on legacy issues, value-generating businesses Piraeus Legacy Unit Q1.17 H1.17 9M.17 RWAs 28.0bn 28.6bn 28.9bn NPE 2.6bn 2.5bn 2.3bn RoA 1.1% 1.1% 1.1% Reg.Capital 4.7bn 4.8bn 4.9bn Q1.17 H1.17 9M.17 RWAs 25.2bn 24.1bn 23.5bn NPE 32.7bn 32.1bn 31.5bn RoA <0% <0% <0% Reg.Capital 4.2bn 4.0bn 4.0bn Corporate & Inv. Banking Retail Banking Asset Management Recovery Banking Unit International Operations Discontinued Operations 8 HIGHLIGHTS

9 PLU WELL POSITIONED TO DELIVER ON TARGETS PLU enables Piraeus Core Bank to be even more efficient & focused towards managing the reduction of non-core portfolio A. Balance Sheet ( bn) 1 Assets 2 Loan loss reserves 3 Net Loans PLU Q1.17 Q2.17 Q RWAs have contracted - 1.7bn after 6m of PLU ringfencing, due to deleveraging of non core assets and non performing exposures. Allocated capital is maintained at 4bn creating buffer to withstand pressure stemming from the ambitious de-risking plan 4 NPEs 5 NPLs 6 RWAs 7 Allocated capital B. P&L ( mn) 8 Pre provision income 9 Provisions PLU revenues driven mainly by provisioning unwinding but offset by cost of risk 3 IFRS9 adjustment is expected to further improve coverage level as of the beginning of 2018, while the impact will be mitigated due to phasing in rules for capital, with no P&L impact C. Ratios 10 Cost of risk (over net loans) 4.5% 4.0% 4.9% 3 4 RWAs density in PLU at 94% to further dilute as derisking effort continue bearing fruits (core bank at 65%) 11 RWA density 98% 96% 94% 4 By the end of 2020, PLU RWAs will be reduced by 12 Group CET-1 phased-in ratio 16.8% 16.9% 17.0% approximately 50% from c. 24bn currently *PLU includes RBU, international operations, REO, holdings, discontinued operations and non-core Greek subsidiaries 9 HIGHLIGHTS

10 CLEAR PROGRESS IN ALL KEY FINANCIAL METRICS ON AN ANNUAL AND QUARTERLY BASIS Group, bn mn Greece Int l Sep.17 Jun.17 qoq Sep.16 yoy Total Assets % % Gross Loans % % Net Loans % % Loan Loss Reserves % % Customer Deposits % % Eurosystem Funding % % Equity % % NII & NFI 1, ,593 1,036 1,580 1% Net Revenues 1, ,714 1,131 1,637 5% Operating Expenses % Pre Provision Income % Impairment on Loans % 2.1bn customer deposits yoy + 0.9bn qoq 4.9bn reduction of ELA yoy - 2.5bn qoq 1.9bn +1% 870mn 844mn loan generation in 9M 0.8bn in Q3 sum of NII & NFI in 9M yoy +8% qoq in Q3 OPEX, -5% in 9M yoy both Group and Greece PPI, +16% in 9M yoy, +19% in Greece Other Impairment % Net Result attr. to SHs Branches (#) % 931-8% Employees (#) 13,892 3,080 16,972 17,088-1% 18,335-7% -8% -7% footprint optimization yoy -1% qoq headcount reduction yoy -1% qoq 10 HIGHLIGHTS

11 PRE PROVISION INCOME UP YOY, WHILE COST OF RISK REMAINS ELEVATED 9M.17 PPI +16% yoy, driven mainly from cost containment Group, mn Q3.17 Q2.17 qoq 9M.17 9M.16 yoy NII % 1,304 1,346-3% Operating Jaws mn PPI , NFI % % Core Banking Income % 1,593 1,580 1% Other % % Net Revenues % 1,714 1,637 5% OpEx (288) (292) -1% (870) (911) -5% CoR M , PPI % % Impairment on loans (312) (259) 20% (830) (702) 18% -3,718-3,487 Other impairment (9) (18) -53% (38) (60) -36% Net result (19) 7 - (19) 14 - Note: data exclude Serbia for 9m.2017 bps on net loans M.17 PPI CoR jaws Notes: (a) recurring P&L data, i.e. excluding one-off items, ratios over assets excl. ΕFSF ESM bonds (b) P&L for 2016 excl. extraordinary financial gain of 77mn from the sale of Visa Europe stake 11 HIGHLIGHTS

12 IMPROVING ASSET QUALITY AND CAPITAL ADEQUACY Group, % Greece Int l Sep.17 Jun.17 Sep.16 Liquidity Loan / Deposits 111% 85% 109% 113% 122% Eurosystem / Assets % 25% 36% Profitability NIM 2.75% 2.55% 2.73% 2.71% 2.72% NFI / Assets 0.61% 0.60% 0.61% 0.50% 0.47% Cost / Income 48% 82% 51% 51% 56% Cost of Risk (% of net loans) 2.5% 1.7% 2.4% 2.2% 1.9% Capital CET-1 (phased-in) % 16.9% 17.1% CET-1 (fully loaded) % 16.5% 16.1% Asset Quality NPE ratio 55.6% 50.2% 55.3% 55.6% 55.5% NPE coverage 45.4% 48.6% 45.5% 45.4% 47.2% >90dpd ratio 36.1% 37.4% 36.2% 37.1% 38.8% >90dpd coverage ratio 69.9% 65.0% 69.7% 68.2% 67.5% 55.3% 36.2% 273bps 51% 17% NPE ratio, with 46% cash coverage NPL ratio, -260 bps yoy NIM, with NFI over assets at 61bps cost to income in Q3, 48% in Greece CET-1, 16.6% fully loaded, both up qoq Note: ratios over assets exclude EFSF ESM bonds and discontinued operations. Profitability ratios refer to ytd period 12 HIGHLIGHTS

13 Net Fee Income Net Interest Income STRONGER REVENUE DRIVERS ELA elimination Loan generation Loan mix effect 11.0bn 7.8bn Balance late Nov. < 6bn 0bn ~ 2bn 2.5bn > 5bn M.2017 target M annualized target Annual new loan production 5% % 9M.2017 ~20% 2020 target % higher loan yield products (Small Businesses, Consumer Loans) over new production Retail banking CIB Other 20bps 33bps >30bps 22bps 23bps >25bps 3bps 5bps ~5bps M M M.2017 target target Drivers: bancassurance, cards, payments transaction banking investment products 2020 target digitalisation 13 HIGHLIGHTS Note: elimination of ELA exposure is targeted by the end of 2018

14 Increasing change ambition level 01 Horizon : zero cost based strategic project initiated Efforts that can be undertaken within the current operating model 1.11 COST OPTIMISATION EFFORTS TO INTENSIFY Cost-to-income ratio M Decrease organisational complexity 2 Re-size functions and align service model 57% 51% <45% 3 Establish a market leading procurement approach Effects of cost initiatives bn, Re-shape the operating model to build the Piraeus Bank of the future ~ Accelerate the modernization ofthe distribution model <1.05 < Digitalize core processes 3 Embed a strategic cost culture in Piraeus M.17 annualized Branch efficiency gains Corporate centre efficiency gains Divestments Initial target 2020 Revised target 14 HIGHLIGHTS

15 MATERIAL REDUCTION IN GROUP NPE AND NPL STOCK NPE Development & Ratio ( bn %) - 3.9bn 55% 55% NPΕ reduction of 2.5bn in the last 12 months and 3.9bn from Sep.15 peak Q3.17 pre write-off ΝPE formation negative (- 0.3bn) SSM NPE operational target attained for 5th quarter in a row Sep.15 Dec.15 Mar.16 Jun.16 Sep.16 Dec.16 Mar.17 Jun.17 Sep.17 NPL Development & Ratio ( bn %) - 5.8bn 40% % NPL stock marked a drop of 0.9bn qoq and 5.8bn from Sep.15 peak Q3.17 pre write-off NPL formation at - 0.5bn SSM NPL operational target attained Sep.15 Dec.15 Mar.16 Jun.16 Sep.16 Dec.16 Mar.17 Jun.17 Sep.17 Notes: NPE /NPL for Jun.17 and Sep.17 exclude Group s operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary); NPE data is on balance sheet 15 HIGHLIGHTS

16 DOMESTIC NPL FORMATION LEADING INDICATOR FOR NPE TRAJECTORY NPL Stock Development ( bn) NPL Formation ( bn) Impacted by 2 corporate accounts 25.4 NPL peak - 4.5bn Sep.15 Dec.15 Mar.16 Jun.16 Sep.16 Dec.16 Mar.17 Jun.17 Sep.17 Q1.15 Q2.15 Q3.15 Q4.15 Q1.16 Q2.16 Q3.16 Q4.16 Q1.17 Q2.17 Q3.17 NPE Stock Development ( bn) NPE Formation ( bn) NPE peak bn Sep.15 Dec.15 Mar.16 Jun.16 Sep.16 Dec.16 Mar.17 Jun.17 Sep.17 Q1.15 Q2.15 Q3.15 Q4.15 Q1.16 Q2.16 Q3.16 Q4.16 Q1.17 Q2.17 Q3.17 Note: NPE data is on balance sheet 16 HIGHLIGHTS

17 01 Pre-write off NPE Formation Piraeus vs. Peers (bps over gross loans) 1.14 NPE & NPL FORMATION PRE WRITE-OFFS BETTER THAN INDUSTRY AVERAGE Pre-write off NPL Formation Piraeus vs. Peers (bps over gross loans) +200 Piraeus Bank 3 Peers' Average 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17-26bps -45bps Piraeus NPL formation declined faster compared to the Greek systemic peer average, based on the following: segment and customer specific operating models tailor-made restructuring products delivered through dedicated channels close cooperation of specialised teams with specific expertise thorough financial and operational target-setting on all levels bps * peer average refers to the other 3 systemic banks (2 peers for Q3.17); NPLs for Greece, NPEs for Group 17 HIGHLIGHTS Piraeus Bank 3 Peers' Average 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 Q1'17 Q2'17 Q3'17-77bps

18 NPE MANAGEMENT RESULTS PERMIT OPTIMISM FOR 2019 TARGETS (amounts in bn) NPEs Redefaults Required effort per quarter on average till 2019 Defaults Curing, Restructuring, Collections Write-offs 0.7 (1.1) (0.3) (0.7) (0.9) (0.9) (0.7) (0.6) (0.5) George Handjini colaou (1.0) (0.6) 9M.17-FY.19 Per quarter Inflows George Handjinicolaou Outflows Net movement Write-offs Sales Sales Q4.16 Q1.17 Q2.17 Q3.17 (0.4) Q4.17 Q4.19 Note: data for defaults include arrears capitalization and new funding; parent data for all figures 18 HIGHLIGHTS

19 ΝPE REDUCTION TARGET FOR THE FIRST YEAR OF THE PLAN ACHIEVED NPEs Jun.16-Sep.17: Actual Performance vs Target amounts in bn Jun.16 - Sep.17 Actual Target delta Defaults Redefaults Inflows Outflows (5.0) (4.6) (0.4) o/w Cures (1.0) (0.7) (0.4) o/w Restructurings (2.3) (2.7) 0.4 o/w Collections (1.4) (0.9) (0.4) o/w Liquidations (0.3) (0.3) - Write-offs (2.2) (2.1) (0.1) NPEs yoy (2.2) (1.9) (0.3) NPEs Jun NPEs Sep (0.3) Better οverall NPE performance versus target, due to higher curings and collections The actions of the Bank regarding liquidations, were in line with the target A new set of products was introduced since early summer in order to reduce redefaults Note: parent data for all figures 19 ASSET QUALITY

20 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION Cash Coverage Ratio per Product and Status (Sep.17) NPE NPE>0dpd NPL NPEs per Bucket (Sep.17) [1] [2] [3] [1+2+3] ( bn) 0 dpd 1-89dpd NPLs NPEs 77% 70% 66% 60% 46% 48% 41% 34% 28% 64% 77% 71% Business Mortgages Consumer TOTAL Total Business Mortgages Consumer NPΕ mix 24% 11% 65% 100% Forborne Loans (Sep.17, 15.4bn) PF 25% NPEF >90dpd 15% NPEF 0dpd 40% 6bn forborne with 0dpd o/w 4bn with less than 12 months since restructuring 9M.17 coverage NPEs ratio at 45.5% while adjusted for 9M write offs would be at 48.4%, 3ppts higher IFRS9 adjustment is expected to further improve coverage levels in early 2018, while the impact is projected to be manageable under the phasing rules to be adopted for capital adequacy and based on the high CET-1 ratio of Piraeus NPEF 31-90dpd 11% NPEF 1-30dpd 9% Note: NPE data is on balance sheet 20 HIGHLIGHTS

21 NPL & NPE OPERATIONAL TARGETS TRACK RECORD Operational Targets Submitted to SSM Parent Data in bn Jun. Sep. Dec. Mar. Jun. Sep. Dec. actual target actual target actual target actual target actual target αctual target NPE NPL Notes : : Overall Operational target attained : Quarterly target attained o/w 2.2bn for debt forgiveness NPE NPL bn Inflows - 9bn Outflows Sep.17 Write-Offs Restructurings. Collections, Liquidations from - 2bn previously Selected Sales Piraeus targets reducing parent stock of NPEs by 37% from Sep.17 ( 32.0bn) to Dec.19 ( 20.3bn) NPLs at parent level are also targeted to be reduced by 50% from Sep.17 ( 20.9bn) to Dec.19 ( 10.4bn) The reduction until 2019 will be driven by: restructurings collections liquidations write-offs selected sales 21 HIGHLIGHTS

22 NPE STOCK EVOLUTION TARGETS Parent NPE Stock Evolution ( bn) -41% Piraeus Bank established in Jun.16 a more aggressive set of targets versus market average. Recently, the Bank resubmitted its targets with fine-tuning through: -37% Increased sales under way Intensified restructuring effort 20.3 <20.0 Liquidations to speed up Collections up as economy recovers Jun.16 Sep.16 Dec.16 Mar.17 Jun.17 Sep.17 Dec.17 Dec.18 Dec.19 Dec.20 Overall plan for -41% NPE decrease versus -37% for total market Actual 22 HIGHLIGHTS

23 REDUCED RELIANCE ON EUROSYSTEM FUNDING, DEPOSITS INCREASING Domestic Deposits ( bn) Positive deposit movement in Q3 in Greece which continues in Q4 2 Eurosystem funding decreased by 3.8bn in Q3.17, by 8.9bn in 9m.17 3 ELA down by 2.5bn qoq in Q3 at 7.8bn vs peak of 22bn Dec.14 Jun.15 Dec.15 Δ Q1.16 Δ Q2.16 Δ Q3.16 Δ Q4.16 Dec.16 Δ Q1.17 Δ Q2.17 Δ Q3.17 Sept Repos at 2.2bn in Q3 incl. 1.2bn with non-ecb eligible collateral Zero reliance of L.3723 State support since April 2016 Eurosystem Funding ( bn) 6 Continued participation in ESM bond exchange programme ΕLA at 7.8bn from 11.9bn at YE Q4.17 to-date: - deposits further increased by ~ 1bn - ELA use has dropped to < 6bn at the end of Nov.17 Dec.14 Jun.15 Dec.15 Δ Q1.16 Δ Q2.16 Δ Q3.16 Δ Q4.16 Dec.16 Δ Q1.17 Δ Q2.17 Δ Q3.17 Sep HIGHLIGHTS

24 REDUCED RISK PROFILE & IMPROVING CAPITAL RATIOS CET-1 Ratios Phased-in CET-1 Capital & RWAs Evolution in 9M.2017 mn bn % Phased-Ιn Fully Loaded Jun.17 Sep.17 Jun.17 Sep.17 9, ,811 CET-1 Capital Total Regulatory Capital RWAs Dec.16 CET-1 9M.17 results cont. ops 9M.17 results disc'd ops Other Sep.17 CET-1 CET-1 ratio 16.9% 17.0% 16.5% 16.6% Note: 102mn mainly from regulatory phasing Total Capital Ratio 16.9% 17.0% 16.5% 16.6% Note: ratios adjusted for RWA relief from divestments under way (Avis Greece, Henry Dunant hospital and Serbian operations) 53,266 51, CET-1 ratios (phased-in & fully loaded) increased on a quarterly basis Leverage ratio at 12.8% State CoCos of 2.0bn Dec.16 RWA 9M.17 Divestments Sep.17 RWA Note: DTC at 4.0bn, o/w 1.3bn from PSI and 2.7bn from loan losses 24 HIGHLIGHTS

25 2017 Auctions PIRAEUS REO ONLINE PLATFORM PROGRESS Piraeus Bank was the 1 st Bank to launch the innovative site achieving the sale of REO assets through online & publicly accessible auctions Online Auctions Results to Date 1 st auction: Jun.17 # properties: 58 of various types in several parts of Greece 2nd auction: Oct.17 # properties: 57 of various types in several parts of Greece Significant customer base: ~2,900 registered users Increased client base: ~5,000 registered users Key Results: - 39 out of 58 (67%) properties received bids bids from 80 bidders - Bids approved on 50% (29 properties) of the assets - 9 properties (out of 39) received Buy Now offers Key Results: - 41 out of 57 (72%) properties received bids bids from 86 bidders - Bids approved on 51% (29 properties) of the assets - 13 properties (out of 41) received Buy Now offers Type Market Price ( mn) Bid Price ( mn) Delta 1 st Auction % 2 nd Auction % Total % >> Residential % >> Commercial % 1 st Auction 29 properties sold at 15% discount over market values 2 nd Auction 29 properties sold at 9% discount over market values 3 rd Auction December Ongoing 2018Auctions >6 auctions planned 25 HIGHLIGHTS

26 PROGRESS AGAINST 2020 GROUP TARGETS NIM from Q1.17 H1.17 9M bps 271bps 273bps to >310bps NFI from 50bps 50bps 61bps to >65bps CIR from 53% 51% 51% to <45% LDR from 116% 113% 109% to <105% NPE from 55% 56% 55% to <30% NPL from 38% 37% 36% to <15% Pre-tax RoA from losses losses losses to ~1.5% RoA from losses break-even break-even to >1.0% Note: c. 70bn assets at the end of 2020 (est.) for the calculation of NIM, NFI and RoA; NPE ratio over on balance sheet data 26 HIGHLIGHTS

27 F I N A N C I A L S F I N A N C I A L S

28 02 amounts in bn 2.1 ASSETS & LIABILITIES OVERVIEW Asset Mix Funding Mix Total Cash Securities EFSF ESM Bonds Total Cash Securities EFSF ESM Bonds Total ELA ECB Interbank Repos Total ELA ECB Interbank Repos Net Loans 46.4 Net Loans Core Deposits 25.2 Core Deposits Fixed Assets Other Jun.17 PPE Other Time Deposits Total Equity Other Jun.17 Time Deposits Total Equity Other Sep.17 Sep FINANCIALS

29 02 Group Balance Sheet ( mn) Sep.17 Jun.17 Sep.16 qoq yoy Cash/Balances with Central Banks 3,215 3,042 3,262 6% -1% Loans & Advances to Banks % -17% Gross Loans 1 61,035 62,048 65,399-2% -7% (Loan Loss Reserves) (15,372) (15,685) (17,120) -2% -10% Securities 6,652 11,828 17,780-44% -63% - o/w EFSF, ΕSM Bonds 2 3,576 8,504 14,544-58% -75% Intangibles & Goodwill % 5% Fixed Assets 2,142 2,088 2,735 3% -22% Deferred Tax Assets 5,339 5,329 5,085 0% 5% Other Assets 3,758 3,852 3,879-2% -3% Assets of Discontinued Operations ,183 2% -17% Total Assets 68,174 73,918 82,639-8% -18% Due to Banks 3 14,374 21,149 29,303-32% -51% Deposits 4 41,822 40,918 39,694 2% 5% Debt Securities % -8% Other Liabilities 1,724 1,584 2,420 9% -29% Liabilities of Discontinued Ops ,186 3% -61% Total Liabilities 58,450 64,170 72,674-9% -20% Total Equity 9,724 9,748 9,964 0% -2% Total Liabilities & Equity 68,174 73,918 82,639-8% -18% 2.2 GROUP BALANCE SHEET: ASSET DELEVERAGING ALONG WITH LIQUIDITY IMPROVEMENT 1 2 Participation in ΕCB s QE programme with 3.7bn throughout 2016 and 0.7bn in Jan.17. In 9M bn of EFSF/ESM bonds have been exchanged (short term measures for Greek debt relief) 3 Eurosystem funding at 12bn in Sep.17, down 11.7bn yoy. ΕFSF repos at 1.1bn in Sep.17, other repos at 1.2bn 4 Q3.17 gross loans in milder deleveraging mode vs. previous periods; 0.5bn write-offs in Q3.17 Customer deposits up 0.9bn qoq, continuing the upward trend started in Q2 29 FINANCIALS

30 02 Piraeus Bank holds a dominant position in the SMEs market 8,000 upscale SMEs in Greece 80% of the SMEs market are customers of Piraeus Bank Cross sell ratio for SMEs at 5.9x vs 3.6x Piraeus corporate clients SMEs Piraeus Penetration 20% 80% PB's customers Other customers SMEs Disbursements ( mn) >1.0bn Q3.17 annualized FY2018e Number of SMEs Greece vs EU SMEs FIRST POSITIVE DEVELOPMENTS Greece versus European Union SMEs figures After a stabilisation period from a downward trend during economic crisis, SMEs show their first signs of recovery This trend is expected to be ongoing in 2017 and 2018 The levels of Greece are lower than of EU 28 average, but the upward shift is estimated to be higher in 2017 and 2018, in terms of number of enterprises, employment and added value. (Index: 2008=100, estimates as from 2015 onwards) e 2016e 2017e 2018e SMEs in Greece SMEs in the European Union Number of employees in SMEs Greece vs EU (Index: 2008=100, estimates as from 2015 onwards) e 2016e 2017e 2018e SMEs in Greece SMEs in the European Union Source: European Commission, SME Performance Review: Annual report on European SMEs 2016/17 & Greece 2017 SBA Fact Sheet 30 FINANCIALS

31 GROUP P&L HIGHLIGHTS: STRONG BANKING INCOME & COST CONTAINMENT Group Profit & Loss ( mn) Q3.17 Q2.17 qoq 9M.17 9M.16 yoy Net Interest Income % 1,304 1,346-3% Net Fee Income % % Core Banking Income % 1,593 1,580 1% Trading Income % % Other Income % 44 9 >100% Total Net Revenues % 1,714 1,714 0% - excl. one-off item % 1,714 1,637 5% Employee Costs (139) (143) -3% (425) (436) -2% Administrative Expenses (123) (123) 0% (367) (397) -7% Depreciation & Other (26) (25) 4% (78) (79) -1% Total Operating Costs 3 (288) (292) -1% (870) (911) -5% Pre Provision Income % % - excl. one-off item % % Result from Associates 4 (19) - (23) (8) - Impairment on Loans 5 (312) (259) 20% (830) (702) 18% Impairment on Other Assets (9) (18) -53% (38) (60) -36% Profit Before Tax (22) (5) - (47) 33 - Tax (21) - Net SHs Profit from Continuing Ops (19) 7 - (19) 14 - Discontinued Ops Result 6 (74) - (68) (34) Core banking income increased by 8% qoq and 1% yoy in the 9M, driven by strong NFI, offsetting the slightly decreased NII as a result of asset deleveraging. Increase in NFI mainly stems from ancillary business and includes bancassurance persistency fee of 35mn Total net revenues for Q3 flattish qoq, 9M +5% yoy Q3 OpEx decreased by 1% qoq and by 5% yoy in the 9M, due to successful containment of administrative expenses and crystallization of 2016 VES benefit PPI increased by 1% qoq, driven by cost containment Q3.17 loan impairment increased by 20% qoq, further improving provision coverage ahead of IFRS9 implementation 31 FINANCIALS

32 PIRAEUS CORE BANK VS. PIRAEUS LEGACY UNIT (9M.2017) A. Balance Sheet ( bn) PIRAEUS CORE BANK PLU PIRAEUS GROUP 1 Net Loans 2 Customer Deposits 3 RWAs B. P&L ( mn) 4 Net revenues 5 Operating expenses 6 Pre provision income 7 Net income attrib. to SHs (624) (246) 248 (330) 1,714 (870) 844 (19) C. Ratios 8 NIM over assets 9 NF&CI over assets 10 Cost-to-income ratio 11 Cost of risk (over net loans) 12 Loan-to-deposit ratio 13 NPE ratio 14 NPL ratio 15 RoA 3.1% 0.9% 51% 0.7% 65% 9% 2% 1.1% 2.2% 0.2% 50% 4.5% n.m. 90% 62% <0% 2.7% 0.6% 51% 2.4% 109% 55% 36% 0% *PLU includes RBU, international operations, REO, holdings, discontinued operations and non-core Greek subsidiaries. NPE ratios calculated over on-balance sheet exposures n.m. non meaningful 32 FINANCIALS

33 DOMESTIC P&L GEARED TO RECOVERY Greek Operations ( mn) Q3.17 Q2.17 qoq 9M.17 9M.16 yoy NII % 1,209 1,247-3% NFI % % Core banking income % 1,476 1,459 1% Total Revenues % 1,594 1,498 6% OpEx 2 (257) (256) 0% (772) (810) -5% PPI % % Impairment on loans 4 (296) (249) 19% (800) (643) 25% Pre tax result (11) 5 - (32) 67 - SHs PAT from cont. ops (11) 14 - (9) Core banking income increased both in a quarterly +9% and yearly basis +1%, on the back of outperforming NFI stemming from business related to e-payments, money transfers, cards and bancassurance persistency fee of 35mn Q3.17 OpEx flattish qoq, yet 9M.17 decreased by 5% yoy, on the back of containment of administrative expenses and crystallization from 2016 VES benefit Pre provision income at 288mn in Q3.17, almost stable qoq, yet increased by 19% yoy for 9M.17 Loan provisions at 296mn, increased for Q3 qoq and 9M yoy Note: P&L figures for 2016 exclude extraordinary financial gain of 77mn from the sale of stake in Visa Europe 33 FINANCIALS

34 NET INTEREST INCOME SUPPORTED BY LOWER FUNDING COSTS Group Balances ( bn) and Interest Amounts & Rates ( mn %) Average Balance FY M.2017 Interest Amount Implied Rate Average Balance Interest Amount Implied Rate Fixed Income Securities % % o/w EFSF bonds % % o/w other bonds % % Net Loans , % , % o/w in Greece , % , % Other Assets % % Total Assets , % , % Assets excl EFSF & Disc Ops Customer Deposits % % o/w in Greece % % Due to Banks % % o/w ELA % % Other Liabilities & Equity % % Total Liabilities % % Net interest Income 1,809 1,304 NIM % 2.73% Lower EFSF/ESM balances due to ongoing exchange in the framework of short term measures for Greek Public Debt relief Income stemming mainly from Greek Bonds and T-bills exposure ( 2.0bn at the end of Q3.17) Slight pressure in domestic portfolio attributed to loan restructurings, while front book rates remain elevated versus legacy portfolio Domestic deposit cost further contained in 9M.17 ELA use drop offers significant relief to interest expense and provides buffer for additional NII increase 1. on assets excluding EFSF/ESM bonds and discontinued operations 34 FINANCIALS

35 DOMESTIC LOAN PORTFOLIO YIELDS: FRONT BOOK PRICING AT HIGHER LEVELS Customer Rates: Time Deposit Rate Declines Further Loan Rates: Front Book Rates Steadily Above Legacy Book Q1.16 Q2.16 Q3.16 Q4.16 Q1.17 Q2.17 Q3.17 Loan Rates New Loans Deposits 0.61% 0.53% 0.53% 0.51% 0.47% 0.46% 0.45% Q3.17 Total Stock Front Book Q3.17 Sight 0.62% 0.57% 0.60% 0.59% 0.54% 0.52% 0.50% Savings 0.17% 0.13% 0.11% 0.10% 0.08% 0.08% 0.08% Time 1.10% 0.97% 0.93% 0.86% 0.82% 0.81% 0.78% Mortgages 2.2% 3.0% 18mn Consumer 7.3% 9.6% 20mn Business 4.0% 4.9% 483mn Total 3.7% 5.0% 521mn avg 3m euribor -0.19% -0.26% -0.30% -0.31% -0.33% -0.33% -0.33% Q3.17 Loans 4.11% 4.07% 4.00% 3.91% 3.88% 3.81% 3.71% Mortgages 2.38% 2.33% 2.28% 2.27% 2.22% 2.19% 2.18% Consumer 8.85% 8.62% 8.42% 8.31% 7.63% 7.62% 7.30% Business 4.40% 4.39% 4.31% 4.19% 4.23% 4.12% 4.01% Business Loan Rates Total Stock Front Book Corporate 3.6% 4.3% SME 3.8% 5.4% SBL 6.5% 7.3% Total 4.0% 4.9% Actual rates shown above refer to total Greek banking operations, quarterly averages Front book rates relate with minimal disbursements for retail loans, while for business, new production came mainly from corporate and SME segment 35 FINANCIALS

36 03. A S S E T Q UA L I T Y

37 GROUP NPE & NPL RATIOS TRENDING LOWER Group NPE Ratio per Product Category Group NPL Ratio +90dpd per Product Category Jun.17 Sep.17 Jun.17 Sep % 55.3% 61.0% 60.5% 41.0% 41.5% 57.8% 57.4% 37.1% 36.2% 38.5% 37.3% 28.9% 28.9% 48.6% 47.3% Total Business Mortgages Consumer Total Business Mortgages Consumer NPE mix 71% 19% 10% NPL mix 67% 20% 13% Group NPE Mix Group NPL Mix NPEs ( mn) Sep.17 NPEs ( mn) Sep.17 NPLs ( mn) Sep.17 NPLs ( mn) Sep.17 Business 23,967 Greece 32,219 Business 14,798 Greece 20,908 Mortgages 6,429 International 1,555 Mortgages 4,485 International 1,160 Consumer 3,378 Consumer 2,785 TOTAL 33,774 TOTAL 33,774 TOTAL 22,068 TOTAL 22,068 Note: NPE on balance sheet data 37 ASSET QUALITY

38 Q1.17 Q2.17 Q3.17 Q1.17 Q2.17 Q3.17 Q1.17 Q2.17 Q3.17 Q1.17 Q2.17 Q3.17 Q1.17 Q2.17 Q3.17 Q1.17 Q2.17 Q PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q3.17 Greek NPE Formation by Segment Business Mortgages Consumer NPEs formation for Retail segment still subdued, while for business segment there has been a significant negative movements of NPEs formation Greek NPL Formation by Segment 334 Business Mortgages Consumer NPLs formation continued in a negative territory for another quarter in Q3 for all segments, paving the way for NPE reduction Notes: pre write-off quarterly NPL formation in mn or as % of gross loans, Q2.17 and on excludes Serbia NPE on balance sheet data 38 ASSET QUALITY

39 SATISFACTORY COVERAGE IN ALL SEGMENTS NPE Coverage Ratio per Product Q2.17 Q3.17 NPL Coverage Ratio per Product Q2.17 Q % 46% 47% 48% 28% 28% 64% 64% 68% 70% 75% 77% 39% 41% 77% 77% Total Business Mortgages Consumer NPE mix 71% 19% 10% Total Business Mortgages Consumer NPL mix 67% 20% 13% Group LLRs at 25% Over Loans LLRs ( mn) Sep.17 LLR/ Loans Business 11, % Mortgages 1, % Consumer 2, % TOTAL 15, % LLRs ( mn) Sep.17 LLR/ Loans Greece 14, % International % TOTAL 15, % Total NPEs coverage ratio at 96% for business portfolio including tangible collateral Strong NPL coverage ratio at 77% for the business portfolio that comprise 67% of total NPL stock Cumulative provisions at 25% over Group gross loans Note: NPE on balance sheet data 39 ASSET QUALITY

40 NPE STOCK INCLUDES 8.2ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS Piraeus Group NPL to NPE Reconciliation (Sep.2017) Piraeus Group NPL-NPE-LLR Data per Product (Sep.2017) Coverage 70% +19.2% Coverage 46% bn Exposures NPEs NPLs Performing Impaired Forborne Contagion 36.2% +5.1% +13.2% +0.9% 55.3% Business Mortgages Consumer Total Group Sep.17 NPL Group 90dpdNPL >90dpd Impaired Forborne Contagion Implied Sep.17 Group Group NPE NPE bn % NPEs NPLs LLRs 8.2bn out of 11.7bn: 0 dpd Coverage NPEs NPLs Impaired: the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions Forborne: the additional effect of the inclusion of exposures which are not past due but have forbearance measures (i.e. concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures Contagion: the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards Business % 77% Mortgages % 41% Consumer % 77% Total % 70% Note: NPE on balance sheet data 40 ASSET QUALITY

41 CASH COVERAGE AUGMENTED BY COLLATERAL Business 48% + corporate and personal guarantees Business 39% + corporate and personal guarantees 48% 77% Cash coverage Total 96% Tangible collateral coverage Cash coverage Total 116% Tangible collateral coverage Total NPEs coverage at 95% (on top personal guarantees) Mortgage 28% 67% + personal guarantees Mortgage Total NPLs coverage at 112% (on top personal guarantees) 41% 67% + personal guarantees Cash coverage Consumer 64% Total 95% Tangible collateral coverage 21% + personal guarantees Cash coverage Consumer 77% Total 108% Tangible collateral coverage 17% + personal guarantees Cash coverage Total 85% Tangible collateral coverage Cash coverage Total 94% Tangible collateral coverage Note: collateral capped at loan amount 41 ASSET QUALITY

42 LOAN PORTFOLIO DIVERSIFICATION Loans: KPIs per Segment (Sep.2017) Domestic Loan Composition (Sep.2017, %) in mn % TOTAL Business Mortgage Consumer GROUP Loans 61,035 39,645 15,507 5,883 Mortgages Consumer 9.5% 26.1% Retail 36% NPL Ratio 36.2% 37.3% 28.9% 47.3% Manufacturing 11.0% NPL Coverage 69.7% 77.0% 40.8% 77.1% Wholesale & Retail Trade 10.3% NPE Ratio 55.3% 60.5% 41.5% 57.4% Other 7.7% NPE Coverage 45.5% 47.5% 28.5% 63.6% Construction 7.6% Accommodation & Food 5.6% in mn % TOTAL Business Mortgage Consumer Financial & Insurance 4.5% GREECE Loans 57,936 37,312 15,143 5,480 Real Estate Shipping 4.5% 3.9% NPL Ratio 36.1% 36.9% 29.4% 49.5% Electricity, Gas, Steam 3.3% NPL Coverage 69.9% 78.1% 40.6% 76.5% Transportation & Storage 2.7% NPE Ratio 55.6% 60.6% 42.0% 59.3% Other Services Activities 1.7% NPE Coverage 45.4% 47.5% 28.3% 63.8% Agriculture 1.7% (*) NPE ratios for on balance sheet data 42 ASSET QUALITY

43 L I Q U I D I T Y L I Q U I D I T Y

44 GREEK MARKET LIQUIDITY GRADUALLY RESTORED Deposits & Βanknotes in Circulation ( bn) 300 Deposits Currency in Circulation Banknotes at 36bn in Oct.17, - 14bn vs. Jun.15 peak Eurosystem Funding ( bn) ELA ECB Eurosystem at c. 37bn in Oct.17 (ELA 23bn, ECB 15bn), - 89bn vs. Jun.15 peak Loans & Deposit Balances (private sector, bn) Deposits Loans Deposits up 1.2bn ytd in Sep.17 Loans down 8.2bn ytd in Sep.17, o/w 4.5bn write-offs Net Loans to Deposits Ratio (%) 140% 120% 100% 80% 60% LDR at 114% in Sep.17, -23bps vs. Jun.15 peak 40% % Source: Bank of Greece 44 LIQUIDITY

45 DOMESTIC DEPOSITS PICKING UP Customer Deposit Movement in Greece ( bn) Domestic Deposit Mix (%) Greek market Greek market Piraeus - Greece Greek market Piraeus - Greece % 63% 76% 76% 37% 37% 24% 24% Sep.17 Sep.17 Sep.17 Sep.17 Dec.15 Δ Q1.16 Δ Q2.16 Δ Q3.16 Δ Q4.16 Dec.16 Δ Q1.17 Δ Q2.17 Δ Q3.17 Sep.17 Time deposits Savings-Sight deposits Business Retail Piraeus - Greece c.40% of market inflow in Q Dec.15 Δ Q1.16 Δ Q2.16 Δ Q3.16 Δ Q4.16 Dec.16 Δ Q1.17 Δ Q2.17 Δ Q3.17 Sep.17 Deposit Movement by Segment ( bn) Piraeus FY.16 delta Q1.17 delta Q2.17 delta Q3.17 delta Sep.17 balance Mass Farmers Affluent Private Banking SB SME Corporate Govt & Other Total LIQUIDITY

46 PIRAEUS DEPOSIT COST DECREASING Greek Customer Deposit Rates (mtd, %) New Time Deposit Rates in European Periphery (%) 4.58% 2.91% 2.74% 4.04% 3.05% 2.62% Total deposits (stock) Time deposits (stock) 1.95% 2.04% 1.75%1.17% 1.79% 0.93% 0.89% 1.30% 0.83% 0.81% 0.79% 1.05% 0.63% 0.52% 0.53% 0.49% 0.46% 0.46% Dec.12 Jun.13 Dec.13 Jun.14 Dec.14 Jun.15 Dec.15 Jun.16 Sep.16 Dec.16 Jun.17 Sep.17 Euro area Greece Spain Portugal Dec.12 Dec.13 Dec.14 Dec.15 Jun.16 Sep.16 Oct.16 Nov.16 Dec.16Mar.17 Jun.17 Sep Greek Time Deposit Rates Stock vs. New (mtd, %) Deposit Cost Further Improved 4.58% 4.40% 4.04% 3.64% 3.05% 2.71% 2.27% 2.62% 1.95% 1.75% New time deposits Time deposits (stock) Time deposit cost continues to decrease Ongoing effort to reduce deposit cost in line with approved Restructuring Plan Gradual increase of market sentiment and inflows in deposits are not expected to trigger any deviation from deposit pricing discipline 1.77% 1.74% 1.17% 0.93% 0.89% 0.83% 0.81% 0.95% 0.79% 0.81% 0.73% 0.65% 0.61% 0.65% Dec.12 Jun.13 Dec.13 Jun.14 Dec.14 Jun.15 Dec.15 Jun.16 Sep.16 Dec. 16 Jun.17 Sep LIQUIDITY

47 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER Eurosystem Funding ( bn) Collateral Used for Eurosystem Funding - Cash Values ( bn) ELA ECB Sep.14 Dec.14 Mar.15 Jun.15 Sep.15 Dec.15 Mar.16 Jun.16 Sep.16 Dec.16 Mar.17 Jun.17 Sep.17 mid- Nov Dec.14 Dec.15 Sep.16 Dec.16 Mar.17 Jun.17 Sep.17 mid- Nov. ECB EFSF ESM Bonds GGBs and T-bills L Other ELA GGBs and T-bills L Loans & Other Total ELA Utilization & Buffer 1 ELA utilization drops below 6.0 at late Nov.17 2 ELA collateral buffer estimated at 11bn, based on existing collateral valuation and haircuts 3 No utilization of Pillar 2 support scheme since April LIQUIDITY

48 ESM EFSF Exchange EFSF QE Sales EFSF ESM BOND EXCHANGE Piraeus ESM EFSF Portfolio Dec bn QE sales 4.4bn Feb bn Q Q3.17 & Oct.17 & Nov bn Early this year, Piraeus, along with the other Greek banks, agreed to participate in the ESM & EFSF Bond Exchange Programs, in the context of the Short Term Measures for the relief of Greek Public Debt Piraeus contribution to the Bond Exchanges so far amounted to a nominal value of 10.2bn At the end of Nov.17, Piraeus outstanding balance of ESM & EFSF stood at 2.2bn (the 9 th Bond Exchange is to be cleared on Dec.6 th, bringing the balance to 1.5bn) The 10 th and last round of the ESM & EFSF Exchange is due this December, while the cash settlement will take place mid January 2018, bringing the relevant ESM / EFSF balance to zero End of Nov bn 48 LIQUIDITY

49 Mar.16 May.17 Jun.16 Jul.16 Aug.16 Sep.16 Oct.16 Nov.16 Dec.16 Jan.17 Feb.17 Mar.17 Apr.17 May.17 Jun.17 Jul.17 Aug.17 Sep.17 Dec.12 Mar.13 Jun.13 Sep.13 Nov.13 Jan.14 Mar.14 May.14 Jul.14 Sep.14 Nov.14 Jan.15 Mar.15 May.15 Jul.15 Oct.15 Dec.15 Feb.16 May.16 Aug,16 Oct.16 Mar.17 Sep INTERBANK REPO ACTIVITY Funding from EFSF Repos ( mn) Interbank Repos Τrends 14,000 12,000 10,000 8,000 0bn late-nov.17 1 Interbank funding through EFSF bond repos stood at c. 1.1bn in September 2017, from 6bn in Dec.16, due to the ongoing exchange in the framework of short term measures for Greek Public Debt relief 6,000 4,000 2, Initiation of interbank repo activity with non-ecb eligible collateral in the past 12 months; balances at 1.6bn at the end of Nov.17 at a cost significantly below ELA level 3 Increased volumes assisting reduction of Eurosystem reliance 1,400 Funding from Non-ECB Eligible Collateral ( mn) 1.6bn late-nov.17 1,200 1, LIQUIDITY

50 05. A P P E N D I X

51 GROUP RESULTS: DOMESTIC & INTERNATIONAL Greece ( mn) Q3.17 Q2.17 qoq 9M.17 9M.16 yoy Net Interest Income % 1,209 1,247-3% Net Fee Income % % Core Banking Income % 1,476 1,459 1% Trading & Other Income % % Total Net Revenues (reported) % 1,594 1,575 1% Total Net Revenues (recurring) % 1,594 1,498 6% International ( mn) Q3.17 Q2.17 qoq 9M.17 9M.16 yoy % % 8 8-1% % % % 0 (3) % % % % % Employee Costs (126) (130) -3% (386) (400) -3% Administrative Expenses (108) (103) 4% (316) (341) -8% Depreciation & Other (23) (22) 4% (69) (68) 2% Total Operating Costs (recurring) (257) (256) 0% (772) (810) -5% (13) (13) -3% (38) (36) 7% (15) (20) -24% (51) (55) -7% (3) (3) 3% % (31) (36) -14% % Pre Provision Income (reported) % % Pre Provision Income (recurring) % % % % Result from Associates 4 (18) - (23) (8) - Impairment on Loans (296) (249) 19% (800) (643) 25% Impairment on Other Assets (6) (17) -61% (31) (47) -35% 0 (1) (16) (10) 66% (30) (59) -50% (2) (2) 24% (8) (13) -40% Pre Tax Result (11) 5 - (32) 67 - Tax Net Result Attributable to SHs (11) 14 - (9) 60 - (12) (10) 17% (16) (34) -54% % 5 (12) - (9) (8) 17% (10) (46) -77% Discontinued Operations Result 5 (23) - (19) (2) - 1 (51) - (49) (32) 55% 51 APPENDIX

52 PIRAEUS LEGACY UNIT PERIMETER (Q3.2017) A. Balance Sheet ( bn) PLU H1.17 9M.17 RBU H1.17 9M.17 Int l H1.17 9M.17 Other(*) H1.17 9M.17 1 Net Loans 2 Customer Deposits 3 RWAs B. P&L ( mn) 4 Net revenues 5 Operating expenses 6 Pre provision income 7 Net income (168) (246) (217) (330) (93) (134) (214) (315) (68) (98) (2) (10) (8) (14) (1) (4) C. Ratios 8 NIM over assets 9 NF&CI over assets 10 Cost-to-income ratio 11 Cost of risk (over net loans) 12 Loan-to-deposit ratio 13 NPE ratio 14 NPL ratio 15 RoA 2.1% 2.2% 0.2% 0.2% 51% 50% 4.3% 4.5% n.m. n.m. 89% 90% 64% 62% <0% <0% 2.3% 2.5% 0.1% 0.1% 44% 40% 4.8% 4.9% n.m. n.m. 93% 93% 65% 64% <0% <0% 2.6% 2.5% 0.6% 0.6% 82% 82% 1.2% 1.7% 87% 85% 49% 50% 41% 37% <0% <0% (0.4%) (0.4%) 0.1% 0.1% 22% 34% 2.9% 3.7% n.m. n.m. 100% 109% 80% 76% <0% <0% *other includes international operations, REO, holdings, discontinued operations and small non-core Greek subsidiaries. NPE ratios calculated over on-balance sheet exposures n.m. non meaningful 52 APPENDIX

53 LOAN & DEPOSIT PORTFOLIOS Gross Loans Evolution ( mn) Deposits Evolution ( mn) Sep.16 Dec.16 Mar.17 Jun.17 Sep.17 yoy qoq Group 65,399 64,947 63,787 62,048 61,035-7% -2% Business 42,582 42,511 41,719 40,389 39,645-7% -2% Mortgages 16,273 16,162 15,950 15,696 15,507-5% -1% Consumer 6,544 6,274 6,118 5,964 5,883-10% -1% Greece 61,547 61,296 60,216 58,905 57,936-6% -2% Business 39,694 39,792 39,069 38,027 37,312-6% -2% Mortgages 15,810 15,707 15,502 15,330 15,143-4% -1% Consumer 6,043 5,797 5,646 5,548 5,480-9% -1% Int l 3,852 3,650 3,571 3,143 3,099-20% -1% Business 2,887 2,719 2,650 2,362 2,333-19% -1% Mortgages % 0% Consumer % -3% Sep.16 Dec.16 Mar.17 Jun.17 Sep.17 yoy qoq Group 39,694 42,365 40,960 40,918 41,822 5% 2% Savings 14,138 14,995 14,294 14,379 14,285 1% -1% Sight 9,592 11,190 10,676 10,860 11,372 19% 5% Time 15,964 16,179 15,990 15,679 16,165 1% 3% Greece 36,786 39,322 38,036 38,185 39,075 6% 2% Savings 13,798 14,613 14,001 14,069 13,967 1% -1% Sight 9,051 10,536 9,964 10,123 10,592 17% 5% Time 13,938 14,172 14,071 13,993 14,516 4% 4% Int l 2,908 3,043 2,924 2,733 2,746-6% 0% Savings % 2% Sight % 6% Time 2,026 2,007 1,919 1,686 1,649-19% -2% Notes: loan balances exclude seasonal agri-loan of 1.7 bn for Dec.16; Serbia excl. from Jun.17 onwards 53 APPENDIX

54 COVERAGE PER SEGMENT Coverage per Segment (Sep.2017) Piraeus Group NPL Ratio % Cash Coverage % Collateral Coverage % Total NPL Coverage % NPE Ratio % Cash Coverage % Collateral Coverage % Total NPE Coverage % Business loans 37% 77% 39% 116% 60% 48% 48% 96% Mortgage loans 29% 41% 67% 108% 42% 28% 67% 95% Consumer loans 47% 77% 17% 94% 57% 64% 21% 85% Total loans 36% 70% 42% 112% 55% 46% 49% 95% High % coverage (provisions & collateral) in all segments Total NPL coverage ratio (NPL Coverage % + NPL Collateral %) of the overall loan portfolio well exceeding 100%, with corresponding total NPE coverage ratio near 100% Coverage of business NPEs relatively balanced between provisions & collaterals, while consumer loans are tilted towards provisions and mortgage loans towards collateral coverage 54 APPENDIX

55 OVERVIEW OF INTERNATIONAL OPERATIONS Market Shares Loans Deposits Subsidiaries ( mn, as at Sep.2017) Albania 5.2% 6.1% Bulgaria 2.9% 3.0% Romania 1.5% 1.2% Ukraine 0.2% 0.2% Romania Branches (#) 99 Employees (#) 1,277 Assets 1,497 Net loans 742 Deposits 931 Bulgaria Branches (#) 74 Employees (#) 946 Assets 1,547 Net loans 712 Deposits 1,151 Ukraine Branches (#) 18 Employees (#) 377 Assets 110 Net loans 42 Deposits 48 Albania Branches (#) 39 Employees (#) 445 Assets 595 Net loans 178 Deposits 452 Total International 1 Branches (#) 232 Employees (#) 3,075 Assets 4.8bn Net loans 2.3bn Deposits 2.7bn Branches London Frankfurt Branch (#) 1 Employees (#) 19 Assets 888 Net loans 624 Deposits 30 Branch (#) 1 Employees (#) 11 Assets 167 Net loans 15 Deposits 134 ¹Consolidated financial data for international operations 55 APPENDIX

56 1 NII Net Interest Income 2 DTAs Deferred Tax Assets GLOSSARY DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES 3 PPA adjustment 4 Gross Loans before Impairments & Adjustments 5 Net Loans PPA adjustments relating to the acquisition of the seven banks [i.e. former ATEbank, the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus, Cyprus Popular Bank, Hellenic Bank), Millennium Bank S.A., Geniki Bank S.A. and Panellinia Bank S.A.] amounting to 8.1bn Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments relating to the acquisition of the seven banks [i.e. former ATEbank, the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus, Cyprus Popular Bank, Hellenic Bank), Millennium Bank S.A., Geniki Bank S.A. and Panellinia Bank S.A.] amounting to 8.1bn Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [i.e. former ATEbank, the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus, Cyprus Popular Bank, Hellenic Bank), Millennium Bank S.A., Geniki Bank S.A. and Panellinia Bank S.A.] amounting to 8.1bn 6 Net Loans to Deposits Ratio Net loans over deposits due to customers 7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income 8 Net Income or Net Revenue 9 Pre Provision Income (PPI) 10 Cost to Income Ratio Total net income excluding the extraordinary financial gain of 77mn from the disposal of Visa Europe when reference is made to There has been no adjustments to Net Income for the current reporting period Total net income excluding the extraordinary financial gain of 77mn from the sale of Visa Europe when reference is made to 2016 less total operating expenses before provisions. There has been no adjustments to Net Income for the current reporting period and hence the relevant amount corresponds to Profit before provisions, impairments and income tax Total operating expenses before provisions over total net income excluding the extraordinary financial gain of 77mn from the disposal of Visa Europe when reference is made to For the current reporting period the ratio is total operating expenses before provisions over total net income 11 Capital adequacy ratio Total regulatory capital over risk weighted assets 12 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets 56 GLOSSARY

57 GLOSSARY DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (cont d) 13 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the anticipated disposals of AVIS Greece, E. Dunant and Piraeus Bank Beograd and its local leasing subsidiary 14 Common Equity Tier-1 ratio (phased-in) Ratio as per item 12 above, with phased-in implementation excluding items in accordance with Basel III definitions 15 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 12 above, with fully loaded implementation excluding items in accordance with Basel III definitions 16 Common Equity Tier-I ratio (fully loaded, excluding the provisions of L.4172/2013) 17 Adjusted total assets Ratio as per item 12 above, with fully loaded implementation excluding items in accordance with Basel III definitions, excluding the part of regulatory capital related to deferred tax assets based on L.4172/2013, and the respective adjustment to risk weighted assets Total assets excluding assets of discontinued operations amounting to 863mn and EFSF/ESM bonds amounting to 3,576mn 18 Net Interest Margin (NIM) Net interest income over adjusted total assets. 19 Net Fee Income over Assets Net fee and commission income over adjusted total assets 20 NPLs Non Performing Loans 21 NPEs Non Performing Exposures Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the acquisition of the seven banks [i.e. former ATEbank, the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus, Cyprus Popular Bank, Hellenic Bank), Millennium Bank S.A., Geniki Bank S.A. and Panellinia Bank S.A.] On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments relating to the acquisition of the seven banks [i.e. former ATEbank, the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus, Cyprus Popular Bank, Hellenic Bank), Millennium Bank S.A., Geniki Bank S.A. and Panellinia Bank S.A.] that are: (a) past due over 90 days; (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral, regardless of the existence of any past due amount or the number of past due days; (c) forborne and still within the probation period under EBA rules; (d) subject to contagion from (a) under EBA rules 22 NPL Ratio Non-performing loans over Gross Loans before Impairments & Adjustments 23 NPE Ratio Non-performing exposure over Gross loans before impairments & Adjustments (including off balance sheet exposure before allowances for loan losses) 57 GLOSSARY

58 GLOSSARY DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (cont d) 24 NPL Coverage Ratio 25 NPE Coverage Ratio 26 NPE Formation 27 NPL Formation 28 New NPL formation over loans Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks [i.e. former ATEbank, the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus, Cyprus Popular Bank, Hellenic Bank), Millennium Bank S.A., Geniki Bank S.A. and Panellinia Bank S.A.] over Non-Performing Loans Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks [i.e. former ATEbank, the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus, Cyprus Popular Bank, Hellenic Bank), Millennium Bank S.A., Geniki Bank S.A. and Panellinia Bank S.A.] over Non-Performing Exposures Change of the stock of adjusted NPEs adding back write-downs or other adjustments i.e. loan sales or debt to equity transactions over loans and advances to customers before allowances for impairment on loan losses Change of the stock of adjusted NPLs adding back write-downs or other adjustments i.e. loan sales or debt to equity transactions over loans and advances to customers before allowances for impairment on loan losses Change of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg. loan sales or debt to equity swaps over loans and advances to customers (before impairments) 29 Net Fee Income (NFI) Net fee and commission income 30 Cost of Risk (CoR) Allowances for impairment of loan losses over net loans 31 Return on Assets Profit / (loss) for the period over adjusted total assets 32 Net Results Profit / (loss) for the period attributable to equity holders of the parent 33 Cumulative provisions Allowance for impairment on loans and advances to customers gross of PPA adjustment 34 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments) 35 Operating Expenses (OpEx) Total operating expenses before provisions 58 GLOSSARY

59 GLOSSARY DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (cont d) 36 Loan impairment charges Impairment losses on loans and advances to customers 37 Pre Tax Results Profit / (loss) before income tax 38 New Loan Generation New loan disbursements that were realized after previous end period 39 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank 40 Cross Selling Ratio Total product groups over total number of customers 41 ELA/Total Assets ELA / Total adjusted Assets 59 GLOSSARY

60 COMMUNICATION Investor Relations Contacts Chryssanthi Berbati Antonis Sagris Xenofon Damalas George Doukas 4 Amerikis St., Athens Tel. : (+30 ) , , investor_relations@piraeusbank.gr Bloomberg: TPEIR GA Reuters: BOPr.AT ISIN: GRS SEDOL: BYWKR