PIRAEUS BANK GROUP PRESENTATION BASED ON Q1.18 FINANCIAL RESULTS. November 2017

Transcription

1 PIRAEUS BANK GROUP PRESENTATION BASED ON Q1.18 FINANCIAL RESULTS November 2017

2 TABLE OF CONTENTS 01 EXECUTIVE SUMMARY 02 FINANCIAL PERFORMANCE 03 ASSET QUALITY 04 EU STRESS TEST 05 LIQUIDITY 06 APPENDIX

3 01. E X ECUTIVE S U M M A RY

4 Q1.04 Q3.04 Q1.05 Q3.05 Q1.06 Q3.06 Q1.07 Q3.07 Q1.08 Q3.08 Q1.09 Q3.09 Q1.10 Q3.10 Q1.11 Q3.11 Q1.12 Q3.12 Q1.13 Q3.13 Q1.14 Q3.14 Q1.15 Q3.15 Q1.16 Q3.16 Q1.17 Q3.17 Q1.18 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Η1.09 Η2.09 Η1.10 Η2.10 Η1.11 Η2.11 Η1.12 Η2.12 Η1.13 Η2.13 Η1.14 Η2.14 Η1.15 Η2.15 Η1.16 Η2.16 Η1.17 Η Real GDP Returns to Growth Trajectory (2017: +1.4%) 1.1 IMPROVING OUTLOOK FOR THE GREEK ECONOMY Real Estate Prices Stabilizing (change yoy %) 3.0 qoq % change yoy % change House Price Index yoy % Commercial Price index yoy % outlook Unemployment Rate Fallen Significantly (2017: 21.5%) 30 Unemployment Rate Economic Sentiment Indicator (ESI) & Manufacturing PMI Point to Improving GDP Dynamics Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis) outlook Sources: ELSTAT, BoG, Bloomberg, Piraeus Bank Economic Research 4 EXECUTIVE SUMMARY

5 01 F I N A N C I A L R ESULTS HIGHLIGHTS 1.2 Q PROGRESS IN ALL FRONTS Continuous Progress on Asset Quality NPEs reduced by 3.0bn yoy and 5.6bn from peak in Sep.15; 0.7bn down in Q1.18 Ten consecutive quarters of NPE reduction Two portfolio sales of c. 2bn aggregated NPE gross book value in Q2.18 ( 1.4bn agreed, 29 May.18) NPE cash coverage at 51%, while including collateral coverage stands at 98% Improved Liquidity Profile and Enhanced Funding Mix Deposits in Greece up by 3.4bn yoy and by 0.5bn in Q1.18 at 41.4bn ELA reduced to < 1bn area in late-may 2018; full elimination expected in the near term Net Loan to Deposit Ratio of 96% in Greece vs. 118% a year ago Intensified Cost Efficiency and Cost of Risk Decrease Offsetting Lower Net Interest Income Net Interest Income down 9% qoq, on the back of increased provisions (Q4.17, IFRS9) Net Fee Income up 2% yoy, with expectation for acceleration in forthcoming quarters Operating Costs down by 6% for Group, 7% Greece yoy. Cost-to-Income at 56% (recurring data for Q1.18) Cost of risk at 1.6% for Q1.18 on the back of 3bn increase in provisions since Sep.17 Profitable Q1.18, with 32mn recurring bottom-line for Greek operations Maintaining a Strong Capital Position Transitional CET-1 at 14.4%, adjusted for four asset disposals under way (two out of four already closed) Solid performance at the 2018 EU-wide stress test exercise Non-dilutive capital actions in place to fortify balance sheet strength and accelerate the execution of Piraeus Group s strategic & business plan 5 EXECUTIVE SUMMARY

6 BALANCE SHEET IMPROVEMENT GREECE Greece, bn Dec.17 Mar.18 qoq Assets 58.5 (1) % Gross Loans 56.6 (2) % Net Loans 41.6 (2) % Loan Loss Reserves % Customer Deposits % Eurosystem Funding % (1) Dec.17 assets excluding seasonal agri-loan, EFSF bonds eliminated in Q1.18 and discontinued operations (2) Loans adjusted for seasonal agri-loan in Dec.17; in addition, quarterly rate adjusted for Q1.18 write-offs 96% LDR ratio enhanced liquidity ELA 3% over assets 28% LLRs over loans 3.0bn new loan generation budgeted for EXECUTIVE SUMMARY

7 OPERATIONAL PERFORMANCE GREECE Greece, mn Q4.17 Q1.18 qoq Net Revenues % Operating Expenses % Pre Provision Income % Impairments 1, % Net results attrib. to SHs Net results attrib. to SHs (recurring Q1.18) Note: P&L figures for Q4.17 and Q1.18 exclude one-time employee cost of 16mn and 138mn respectively 233bps NIM over assets 56% C:I down qoq Note: assets adjusted for discontinued operations 50bps NFI over assets 160bps CoR at normalization trend 7 EXECUTIVE SUMMARY

8 ASSET QUALITY TRACK RECORD Group NPE Development ( bn) Sep.15 Dec.16 Dec.17 Mar.18 98% 15 collateral 16 provisions Coverage On track with 2018 NPE reduction target - 0.7bn Q1.18 ΝPE quarterly reduction 3.0bn NPE reduction in the last 12 months 5.6bn NPE reduction from Sep.15 peak 8 EXECUTIVE SUMMARY

9 NPE REDUCTION PACE Βank NPE Track Record ( bn) Piraeus reduced parent stock of NPE by 10% from Jun.16 to Mar.18; recorded 0.6bn reduction in Q1.18 Jun.16 H2.16 H1.17 H2.17 Dec.17 Q1.18 Mar.18 9 EXECUTIVE SUMMARY

10 NPE MANAGEMENT: DECREASE IN DEFAULTS & RE-DEFAULTS TRENDS Bank data, amounts in bn NPEs Redefaults Required effort per quarter on average till 2019 Defaults Curing, Restructuring, Liquidations, Collections 0.7 (1.1) (0.7) (0.9) (0.9) (0.9) (0.9) George Handjini colaou (1.0) Write-offs Sales (0.3) (0.7) (0.6) (0.5) (0.5) (0.5) (0.2) (0.6) (0.5) Q4.16 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 Q2.18 Q EXECUTIVE SUMMARY

11 NPL & NPE OPERATIONAL TARGETS 30.8bn Piraeus aims to further reduce parent stock of NPEs by 34% from Mar.18 to Dec bn bn NPE NPL Mar.2018a Dec.2018f Dec.2019f Reduction will be achieved through: The reduction by 2019 will be driven by: restructurings debt forgiveness collections write-offs liquidations sales bn - 3.5bn* Dec.17 organic effort inorganic effort 2020 restructurings, curings, liquidations, collections sales * 1.4bn agreed in late May EXECUTIVE SUMMARY

12 01 Project ARCTOS Project AMOEBA sale agreed 1.9 ΙΜΜΙΝΕΝΤ NPΕ SALES Sale of c. 2.3bn legal claim unsecured denounced consumer NPLs ( 0.4bn gross book value) Unsecured personal loans and credit cards 132k borrowers; 43% of accounts in 1-5k bucket EY acts as financial advisor c.23 signed NDAs with international investors Non binding offers submitted on 14 March by 6 investors Sale of c. 2.0bn legal claim secured large SME and corporate -mainly denounced- NPLs ( 1.4bn gross book value) P&L positive and capital accretive transaction by c.20bps 173 borrowers; 1,650 properties UBS, Alix, E&Y, Shearman & Sterling and Zepos & Yannopoulos acted as Piraeus advisors c.30 signed NDAs with international investors, 12non binding offers, 4 binding offers 12 EXECUTIVE SUMMARY

13 IMPROVED LIQUIDITY & FUNDING POSITION Domestic Deposits ( bn) market share: 28.6% (private sector) (Dec.17) 28.8% (Mar.18) Positive deposit movement in Q1.18 Consisted deposit inflows Dec.14 Jun.15 Dec.15 Dec.16 FY.17 Q1.18 Mar.18 ELA Funding ( bn) Dec.14 Jun.15 Dec.15 Dec.16 FY.17 Q1.18 Mar.18 Eurosystem funding decreased by 3.6bn in Q1.18 Repos in Q1.18 with non-ecb eligible collateral at 2.3bn ELA use has dropped further to < 1bn area in late May EXECUTIVE SUMMARY

14 SOUND CAPITAL RATIOS CET-1 Phased-In Ratio bn % Mar.18 Mar.18 proforma CET-1 Capital RWAs CET-1 ratio 14.0% 14.4% Phasing impact of c.60bps in Q1.18 CET1 ratio on fully loaded basis at 11.4% Note: pro-forma ratio adjusted for asset disposals under way (Romania, Serbia and 2 NPE disposals, Amoeba & Arctos; Serbia & Amoeba already concluded) SREP Capital Requirement (TSCR) % Pillar I CET1 4.50% 4.50% Pillar 2 Requirement (P2R) 3.75% 3.75% AT1 1.50% 1.50% T2 2.00% 2.00% Total SREP Capital Requirement (TSCR) 11.75% 11.75% Conservation buffer (CB) 1.25% 1.875% Overall Capital Requirement (OCR) 13.00% % Piraeus Bank maintains capital ratios in excess of SREP capital requirements 14 EXECUTIVE SUMMARY

15 CAPITAL STRENGTHENING PLAN UNDER WAY Piraeus Bank s Capital Measures Action Time Status RWAs Impact A. Sale of Assets Signed SPAs or Non-Binding Offers >> Avis [operating leasing company] Q1.18 ~ 0.2 bn >> Serbia [banking subsidiary] Q2.18 ~ 0.3 bn >> Amoeba [secured NPL portfolio] Q2.18 ~ 0.6 bn >> Arctos [unsecured NPL portfolio] Q2.18 >> Romania [banking subsidiary] Q2.18 ~ 0.6 bn RWAs Impact Sub-total ~ 1.7bn B. Sale of Assets Under Way >> Bulgaria Albania [banking subsidiaries] Q2.18 ~ 1.2bn C. Other De-Risking Actions Under Way YE.18 ~ 0.6bn Piraeus Bank is executing a capital strengthening plan since 2017 Post actions to increase NPE coverage (2017 clean-up & IFRS9 first time adoption), Piraeus is now focusing on accelerated balance sheet de-risking to facilitate the execution of its business plan On top of these actions, Piraeus is also exploring certain alternatives in issuing non-dilutive instruments Total ~ 3.5bn 15 EXECUTIVE SUMMARY

16 PIRAEUS BANK S STRATEGIC FOCUS Significant strides forward in using our strong capital base to strengthen reserves Best-in-class NPL reduction Q4 provisioning clean-up IFRS9 boost to coverage ratio Viable restructurings & increased collections for NPE/NPL portfolio Satisfactory deposit growth Streamlining of business to pave the way for continuing de-risking Restructuring Plan conclusion ELA reliance elimination Inorganic initiatives for NPLs Growth in Core Bank Cost optimisation Digitisation acceleration Improved PPI and normalized provisioning to show earning power Medium-term targets to be achieved, as per the Agenda 2020 strategic plan Strong potential for growth on the back of new loan generation Sustainable healthy returns 16 EXECUTIVE SUMMARY

17 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION Piraeus Bank Efficiency & Risk-Adjusted Return Decisive Actions on Legacy Issues Piraeus Core Bank Piraeus Legacy Unit bn RWA ROA Mar % Dec % Sep % Jun % Mar % bn RWA ROA Mar <0% Dec <0% Sep <0% Jun <0% Mar <0% 17 EXECUTIVE SUMMARY

18 PIRAEUS BANK TRANSFORMATION JOURNEY Bank Restructuring Corporate governance strengthened New management structure established Piraeus Legacy Unit established New corporate culture Profit Generation in the Core Loan demand improvement Risk-adjusted growth of revenues Cost efficiency Customer growth Asset Resolution in the PLU NPE NPL reduction Sustainable solutions Clean-up acceleration Divestitures of non-core assets 18 EXECUTIVE SUMMARY

19 F I N A N C I A L S F I N A N C I A L S P E R F O R M A N CE

20 02 amounts in bn 2.1 ASSETS & LIABILITIES OVERVIEW Total Cash Securities Asset Mix Funding Mix Total ELA ECB Interbank Repos Debt Securities Asset side comprised 65% by customer loans EFSF bonds dropped to zero as of Jan.18 in the context of short term measures for the Hellenic Republic s debt relief ( 16.8bn at the peak) Net Loans Core Deposits Funding mix enhanced on the back of lower ELA reliance, improved market access and increasing customer deposits Increased interbank repo balances at cost lower than ELA PPE Time Deposits Other* Total Equity 3.5 Other Mar.18 Mar FINANCIAL PERFORMANCE (*) other includes DTA, loans & advances to banks, intangible assets, discontinued operations

21 02 Group Balance Sheet ( mn) 2.2 GROUP BALANCE SHEET: DE-RISKING AND LIQUIDITY IMPROVEMENT Mar.17 Dec.17 Mar.18 qoq yoy Cash/Balances with Central Banks 2,821 1,449 1,524 5% -46% Loans & Advances to Banks 159 2,148 3,532 64% - Gross Loans 1 63,787 60,260 57,702-4% -10% (Loan Loss Reserves) (16,370) (15,541) (16,344) 5% 0% Securities 14,113 3,978 2,409-39% - - o/w EFSF, ΕSM Bonds 2 10,859 1, Intangibles & Goodwill % 11% Fixed Assets 2,307 2,180 2,201 1% -5% Deferred Tax Assets 5,330 6,543 6,587 1% 24% Other Assets 3,698 3,815 3,862 1% 4% Assets of Discontinued Ops 527 2,284 1,781-22% - Total Assets 76,647 67,417 63,559-6% -17% Due to Banks 3 23,680 11,435 8,846-23% -63% Deposits 4 40,960 42,715 43,151 1% 5% Debt Securities % - Other Liabilities 2,041 1,840 1,762 12% -10% Liabilities of Discontinued Ops 99 1,641 1,446-12% - Total Liabilities 66,848 57,872 55,717-4% -17% Total Equity 9,799 9,544 7,842-18% -20% Total Liabilities & Equity 76,647 67,417 63,559-6% -17% 1 2 As of Jan.18 the last round of EFSF bond exchange was settled and the relevant balance was brought to zero 3 Eurosystem funding at 6.1bn in Mar.18, down 9.4bn yoy. ΕFSF repos balance to zero in Nov.17, other repos with non 4 Q1.18 delta in gross loans reflects mainly technicalities, such as seasonal agri-loan repayment and write-offs, indicating loan demand is gradually being restored ECBeligible collateral at 2.3bn Customer deposits up 0.5bn qoq, continuing the upward trend started in mid FINANCIAL PERFORMANCE

22 02 Group Profit & Loss ( mn) Q4.17 Q1.18 qoq Q1.17 yoy Net Interest Income % % 1 Net Fee Income % 77 2% Core Banking Income % % Trading Income (2) Other Income (2) - Total Net Revenues % % Total Net Revenues (recurring) % % Employee Costs (157) (264) 68% (136) 36% Employee Costs (recurring) (141) (126) -11% (136) -7% Administrative Expenses (154) (105) -32% (115) -8% Depreciation & Other (29) (28) -4% (25) 12% Total Operating Costs (341) (397) 17% (276) 15% Total Operating Costs (recurring) 2 (324) (259) -20% (276) -6% Pre Provision Income % % Pre Provision Income (recurring) % % Result from Associates (8) (8) 1% (7) 17% Impairment on Loans 4 (1,182) (164) -86% (258) -36% Impairment on Other Assets (124) (9) -93% (10) -9% Profit Before Tax (1,170) (117) - (15) - Profit Before Tax (recurring) (1,170) 22 - (15) - Tax 1, Net results attrib. to SHs 12 (80) - (2) - Net results attrib. to SHs (recurring Q1.18) (2) - Discontinued Ops Result (124) (2) - (6) - Note: for Q mn were flagged as one-off, stemming from the sales of EFSF bonds to the Central Bank. In addition, VES and other extraordinary staff costs of 138mn and 16mn were classified as one-off items in Q1.18 and Q4.17 respectively. 22 FINANCIAL PERFORMANCE 2.3 GROUP P&L HIGHLIGHTS: STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION NII was impacted by the sizeable provisioning of Q4.17 ( 1.2bn) and the first time adoption of the IFRS9 accounting policy for exposures in Stage 3 ( 1.0bn). On the other hand, NFI was higher by 2% yoy Q1.18 OpEx decreased by 6% yoy, excluding the extraordinary cost associated with 2018 VES. Main driver for this has been the cost reduction programme that started bearing fruits with the launch of VES in early 2018, as well as other actions aiming at admin costs decline Q1.18 Group recurring PPI decreased 15% yoy, as the significant progress on cost reduction and the continuous increase in net fee and commission income was outstripped by the decline in net interest income Q1.18 loan impairment at 164mn in Q1.18 against 258mn in Q1.17, following the substantial increase in coverage levels in previous quarter and the IFRS9 transition

23 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT Q1.18 A. P&L ( mn) PIRAEUS CORE BANK PLU PIRAEUS GROUP 1 NII NFI Net revenues Operating costs (ex one-offs) (202) (57) (259) 5 PPI (ex one-offs) Impairments (3) (169) (173) 7 Net income (reported) 22 (102) (80) 8 Net Income (ex one-offs) 110 (92) 18 B. Ratios 9 NIM over assets 2.77% 1.50% 2.33% 10 NF&CI over assets 0.70% 0.14% 0.51% 11 Cost-to-income (ex one-offs) 55% 60% 56% 12 Cost of risk (over net loans) 0.02% 3.58% 1.59% 13 RoA (ex one-offs) 1.1% <0% 0.1% *PLU includes RBU, international operations, REO, holdings, discontinued operations and non-core Greek subsidiaries. Items mentioned as recurring exclude one-time employee cost of 138mn 23 FINANCIAL PERFORMANCE

24 P&L IN GREECE Greek Operations ( mn) Note: Q4.17 Q1.18 qoq Q1.17 yoy Net Interest Income % % 1 Net Fee Income % 73 1% Trading & Other Income % Total Revenues % % Total Revenues (recurring) % % OpEx (322) (380) -18% (260) 46% OpEx (recurring) 2 (306) (242) -21% (260) -7% PPI % % PPI (recurring) % % Impairment on loans (1,128) (159) -86% (255) - Pre tax result (1,100) (101) - (26) -37% Net results attrib. to SHs 66 (66) - (13) - Net results attrib. to SHs (recurring Q1.18) (13) - for Q mn were flagged as one-off, stemming from the sales of EFSF bonds to the Central Bank. In addition, VES and other extraordinary staff costs of 138mn and 16mn were classified as one-off items in Q1.18 and Q4.17 respectively NII was impacted by the sizeable provisioning of Q4.17 and the first time adoption of IFRS9, while NFI posted an increase of 1% yoy OpEx decreased in Q1.18 by 7% yoy, on the back of containment of administrative expenses and crystallization from 2016 and 2017 VES benefit Pre provision income at 192mn in Q1.18, posting a decrease of 14% yoy Q1.18 loan impairment at 159mn in Q1.18 against 255mn in Q1.17, a de-escalation that comes on the back of sizeable increase in provisioning in previous quarter and the IFRS9 transition, as well as improving market conditions 24 FINANCIAL PERFORMANCE

25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS Net Interest Income Decomposition ( mn) Q4.17 Q1.18 Fixed Income Securities Net Loans o/w in Greece Other Assets Interest Income amounts in bn Customer Deposits o/w in Greece Due to Banks 9 14 o/w ELA Other Liabilities & Equity Interest Expense Net interest Income NIM % 2.33% 1 2 Q4.17 IFRS9 stage 3 & Q4 LLP impact Lower accruing balance on the back of the increased provisions in Q4.17 ( 1.2bn) and IFRS9 transition 1.6bn in Q1.18 Calendar effect Deleverage Q1.18 Calendar impact in Q1.18 (2 days less versus Q4.17) 1. on assets excluding EFSF bonds and discontinued operations 25 FINANCIAL PERFORMANCE

26 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 Q4.16 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 Deposits 0.51% 0.47% 0.46% 0.45% 0.46% 0.46% Sight 0.59% 0.54% 0.52% 0.50% 0.55% 0.52% Savings 0.10% 0.08% 0.08% 0.08% 0.08% 0.07% Time 0.86% 0.82% 0.81% 0.78% 0.76% 0.75% avg 3m euribor -0.31% -0.33% -0.33% -0.33% -0.33% -0.33% Loans 3.91% 3.88% 3.81% 3.71% 3.64% 3.60% Mortgages 2.27% 2.22% 2.19% 2.18% 2.17% 2.15% Consumer 8.31% 7.63% 7.62% 7.30% 7.14% 6.84% Business 4.19% 4.23% 4.12% 4.01% 3.92% 3.90% Loan Rates Q1.18 Total Stock Front Book Mortgages 2.2% 3.3% Consumer 6.8% 9.6% Business 3.9% 5.1% Total 3.6% 5.3% Q1.18 Business Loan Rates Total Stock Front Book Corporate & SME 3.6% 4.9% SBL 6.0% 7.6% Total 3.9% 5.1% 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 26 FINANCIAL PERFORMANCE

27 UPGRADED OPERATING EFFICIENCY Cost savings of more than 200mn for the 3-year period Effects of cost initiatives bn, ~0.9 Project Horizon was commenced in Q4.17 to re-invent the operational model of the Bank 16 key initiatives to reduce the cost base in Greece by > 200mn during period mn initiatives in place 2013 Retail efficiency gains Wholesale efficiency gains Reshape corporate core efficiency 2020 functions Redesign processes Procurement gains 80mn actions already been taken 35mn admin 45mn VES 27 FINANCIAL PERFORMANCE

28 Share of employment in SMEs as % of total 02 Piraeus Bank holds a dominant position in the SMEs market 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 Loan Disbursements ( bn) ~1.0bn FY2018e 2.9 SMEs FIRST POSITIVE DEVELOPMENTS Greece versus European Union SMEs figures SMEs play a crucial role in the Greek non-financial business economy Greece shows the highest positive relationship between SMEs and employment in them amongst the EU member states The relative relationship of EU average is much lower than Greece s The recovery of the Greek SMEs seems vital for the economy 90% 85% 80% 75% 70% 65% 60% 55% SMEs Shares of employment and enterprises LU DE AT RO DK UK EE HR FI CY MT LV PTIT BG LT SI ES SK IE PL HUBE EU CZSE NL FR 50% 99.5% 99.6% 99.6% 99.7% 99.7% 99.8% 99.8% 99.9% 99.9% 100.0% 100.0% Share of SMEs as % of total number of enterprises GR 28 FINANCIAL PERFORMANCE Source: European Commission, SME Performance Review: Annual report on European SMEs 2016/17, Piraeus Bank Research

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

30 GROUP NPE & NPL RATIOS ON TRACK Group NPE Ratio per Product Category Group NPL Ratio per Product Category Dec.17 Dec.17 Mar % 55.7% 58.9% 61.1% 59.0% 57.8% Mar % 48.6% 41.5% 41.5% 35.3% 35.5% 35.9% 35.8% 29.2% 29.9% Total Business Mortgages Consumer Total Business Mortgages Consumer NPE mix 71% 19% 10% NPL mix 65% 22% 13% Group NPE Mix Group NPL Mix NPEs ( mn) Mar.18 NPEs ( mn) Mar.18 NPLs ( mn) Mar.18 NPLs ( mn) Mar.18 Business 22,787 Greece 31,026 Business 13,360 Greece 19,673 Mortgages 6,232 International 1,124 Mortgages 4,490 International 811 Consumer 3,131 Consumer 2,634 TOTAL 32,150 TOTAL 32,150 TOTAL 20,484 TOTAL 20,484 Note: NPE on balance sheet data; Dec.17 excluding seasonal agri-loan fully repaid in Q ASSET QUALITY

31 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY NPL Stock Development ( bn) NPL Pre Write-off Formation ( bn) NPL peak - 5.7bn Sep.15 Dec.15 Mar.16 Jun.16 Sep.16 Dec.16 Mar.17 Jun.17 Sep.17 Dec.17 Mar.18 Q1.15 Q2.15 Q3.15 Q4.15 Q1.16 Q2.16 Q3.16 Q4.16 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 NPE Stock Development ( bn) NPE Pre Write-off Formation ( bn) 34.7 NPE peak - 3.7bn Sep.15 Dec.15 Mar.16 Jun.16 Sep.16 Dec.16 Mar.17 Jun.17 Sep.17 Dec.17 Mar.18 Q1.15 Q2.15 Q3.15 Q4.15 Q1.16 Q2.16 Q3.16 Q4.16 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 Note: NPE data is on balance sheet 31 ASSET QUALITY

32 03 NPEs Jun.16-Mar.18: Actual Performance vs Target 3.3 ΝPE REDUCTION PLAN ON THE RIGHT TRAJECTORY amounts in bn Jun.16 Mar.18 Actual Target delta Defaults Redefaults Inflows Outflows (7.0) (6.2) (0.8) o/w Cures (1.4) (1.0) (0.5) o/w Restructurings (3.3) (3.4) 0.1 o/w Collections (1.8) (1.3) (0.5) o/w Liquidations (0.5) (0.6) 0.1 Sales (0.3) (0.7) 0.4 Write-offs (3.2) (3.1) (0.1) NPEs yoy (3.5) (3.8) 0.3 NPEs Jun NPEs Mar * * * Better performance versus target regarding outflows overall The 2 large scale NPE sales will be concluded in Q2.18 (Amoeba agreed in late May 2018) Positive signs of reduction both in default and re-default trends in Q1.18 A new set of products was introduced in order to reduce redefaults Arctos ( 0.4bn sale) was budgeted for Q1.18, to be concluded by end Jun.18* Note: parent data for all figures 32 ASSET QUALITY

33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION Cash Coverage Ratio per Product and Status (Mar.18) NPE NPE>0dpd NPL NPEs per Bucket (Mar.18) [1] [2] [3] [1+2+3] ( bn) 0 dpd 1-89dpd NPLs NPEs 80% 67% 89% 73% 79% 94% 88% Business Mortgages % 52% 44% 32% 37% Consumer TOTAL Total Business Mortgages Consumer NPΕ mix 24% 12% 64% 100% Forborne Loans (Mar.18, 14.4bn) 5.7bn forborne with 0dpd PF 26% NPEF 0dpd 39% pace of NPE exits from restructurings evidently to be accelerated: 0.3bn in 2017 per quarter on average NPEF >90dpd 12% 0.4bn est per quarter on average 0.7bn est per quarter on average NPEF 31-90dpd 12% NPEF 1-30dpd 11% Note: NPE on balance sheet data 33 ASSET QUALITY

34 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 Q1.17 Q2.17 Q3.17 Q4.17 Q PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q1.18 Greek NPE Formation by Segment Business Mortgages Consumer NPE formation was negative in all segments in Q1.18, with business having a significant negative movements of NPEs formation, similar to Q Greek NPL Formation by Segment 334 Business Mortgages Consumer NPL formation remained negative for business and consumer, while mortgages had a slightly positive formation Notes: pre write-off quarterly NPL formation in mn, NPE on balance sheet data 34 ASSET QUALITY

35 SOLID COVERAGE IN ALL SEGMENTS NPE Coverage Ratio per Product NPL Coverage Ratio per Product Dec.17 Mar.18 Dec.17 Mar.18 51% 47% 50% 52% 32% 28% 67% 79% 80% 75% 89% 85% 39% 44% 82% 94% Total Business Mortgages Consumer NPE mix 71% 19% 10% Total Business Mortgages Consumer NPL mix 65% 22% 13% Group LLRs at 28% Over Loans LLRs ( mn) Mar.18 LLR/ Loans Business % Mortgages 1, % Consumer 2, % TOTAL 16, % LLRs ( mn) Mar.18 LLR/ Loans Greece 15, % International % TOTAL 16, % Total NPE coverage ratio at 98% for business portfolio including collateral Strong NPL coverage ratio at 89% for the business portfolio that comprise 65% of total NPL stock Cumulative provisions at 28% over Group gross loans Note: NPE on balance sheet data 35 ASSET QUALITY

36 NPE STOCK INCLUDES 7.7ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS Piraeus Group NPL to NPE Reconciliation (Mar.2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar.2018) Coverage 80% +20.2% Coverage 51% bn Exposures NPEs NPLs Performing Impaired Forborne Contagion 35.5% +5.0% +13.9% +1.3% 55.7% Business Mortgages Consumer Total Group Mar.18 NPL Group 90dpdNPL >90dpd Impaired Forborne Contagion Implied Mar.18 Group Group NPE NPE bn % NPEs NPLs LLRs 7.7bn 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 % 89% Mortgages % 44% Consumer % 94% Total % 80% Notes: NPE on balance sheet data 36 ASSET QUALITY

37 CASH COVERAGE AUGMENTED BY COLLATERAL Business Business 40% 46% 89% 52% Cash coverage Collateral coverage Cash coverage Collateral coverage Total 98% Total 129% Mortgage Mortgage Total NPE coverage at 98% 66% Total NPL coverage at 123% 66% 32% 44% Cash coverage Collateral coverage Total 98% Consumer Cash coverage Collateral coverage Total 110% Consumer 79% 18% 94% 17% Cash coverage Collateral coverage Cash coverage Collateral coverage Total 97% Total 111% Notes: collateral capped at loan amount 37 ASSET QUALITY

38 NPL & NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA] NPL Development yoy ( bn) Jun bn -19% Mar.18 Jun bn -24% 12.6 Mar Jun bn -2% 4.5 Mar bn -20% Jun Mar.18 NPE Development yoy ( bn) Business Loans Mortgages Consumer Loans bn -10% Jun.16 Mar.18 Jun bn - 0.0bn -11% -0% Mar.18 Jun.16 Mar bn -18% Jun.16 Mar ASSET QUALITY

39 LOAN PORTFOLIO DIVERSIFICATION Loans: KPIs per Segment (Mar.2018) Domestic Loan Composition (Mar.2018, %) in mn % TOTAL Business Mortgages Consumer GROUP Loans 57,702 37,276 15,007 5,419 Mortgages Consumer 9.4% 26.6% Retail 36% NPL Ratio 35.5% 35.8% 29.9% 48.6% Manufacturing 11.1% NPL Coverage 89.0% 88.9% 44.2% 94.3% Wholesale & Retail Trade 10.5% NPE Ratio 55.7% 61.1% 41.5% 57.8% Other 8.1% NPE Coverage 50.8% 52.1% 31.8% 79.3% Construction 7.6% Accommodation & Food 5.7% in mn % TOTAL Business Mortgages Consumer Financial & Insurance 4.1% GREECE Loans 55,680 35,655 14,797 5,229 Real Estate Shipping 4.3% 4.1% NPL Ratio 35.3% 35.4% 30.1% 49.3% Electricity, Gas, Steam 3.2% NPL Coverage 80.5% 90.6% 44.0% 94.5% Transportation & Storage 2.4% NPE Ratio 55.7% 61.1% 41.8% 58.6% Agriculture 1.7% NPE Coverage 52.3% 52.6% 31.7% 79.4% Other service activities 1.4% 39 ASSET QUALITY

40 AUCTIONS PROGRESS 620 auctions in Feb-May 2018 vs. 396 in FY.2017 Property auctions Feb- May # auctions carried out by Piraeus % 10% 60% Measure for carrying out solely e-auctions of foreclosed property commenced in 28 Feb The measure affects all auctions, regardless of when a foreclosure notice was imposed completed The Code of Civil Procedures introduces the preferential coverage of the Banks claims from auctions proceeds, provided that the following cumulative conditions are satisfied: i) new financing post , ii) with new underwriting/mortgage/or pledged collateral of 1st class and iii) this collateral is auctioned non completed cancelled due to debtor request for restructuring 40 ASSET QUALITY

41 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 st Auction 2 nd Auction 3 rd Auction 4 th Auction Jun Oct Dec Mar.18 # of properties # of registered users ~2,900 ~5,000 >6,000 >8,500 # of properties that received bids 39 (67%) 41 (72%) 35 (73%) 37 (76%) # of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) % of the assets with approved bids 50% (29 properties) 51% (29 properties) 54% (26 properties) 67% (33 properties) # of properties received Buy Now offers 9/39 13/41 6/35 13/37 Type Market Price Bid Price ( mn) ( mn) Delta 1 st Auction % 2 nd Auction % 3 rd Auction % 4 th Auction % Total % >> Residential % >> Commercial % >> Land plots % 1 st Auction 29 properties sold at 15% discount to market values 2 nd Auction 29 properties sold at 9% discount to market values 3 rd Auction 26 properties sold at 15% discount to market values 4 th Auction 33 properties sold at 5.2% discount to market values Planned Auctions 6 or above, next one in mid-june 41 ASSET QUALITY

42 REO MANAGEMENT ( mn) North Greece Thessaloniki Piraeus REO holdings is concentrated in Attiki and North Greece regions, jointly making up ~50% of the portfolio Sterea Peloponnisos Central Greece Islands 133 Attiki Current Status ~5.3k properties accumulated mainly in the last 3 years from acquisitions & repossessions (2.1k residential, 1.5k commercial, 0.4k industrial, 1.3k plots) Current market value of those properties 1.0bn In Q1.18 #69 properties were sold and in 2017 #148 vs. #61 in 2016, #22 in 2015 and just #10 in Actions Commercial Retail Large assets > 5mn Crete 33 Number of Properties Sold (#) Run the Real Estate re-organisation project Improve on the current strengths of Piraeus Real Estate and transform it in the marketing company for REO, utilising the newly introduced innovative platform for auctions in Greece Enhance the capabilities of the Group with property and facility management contracts Create an RBU unit to reverse engineer both the restructuring and foreclosure processes with REO input and strategy Q ASSET QUALITY

43 RBU PORTFOLIO AT A GLANCE 31 Mar ( bn %) Balances ( bn) Customers (#) FTEs (#) CEO Corporate RBU k 63 SME RBU k 152 Commercial Workout k 368 Operational Retail RBU k Piraeus Bank Core Recovery Banking Unit (RBU) RBU Strategy Retail SBL Recovery - Mortgages k - Consumer, Agri, Credit Cards k - SBLs RBU k 901* SME Recovery Corporate Shipping Recovery RBU Structured Solution Total Operational RBU k 1,484** Notes: - Figures display balances & customers managed by Piraeus Recovery Banking Unit - Customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships) (*) Including 4 FTEs in Senior Management office (**) Including supporting RBU staff (total: 161 FTEs) (***) Including 45 FTEs in branches for customers holding agricultural products (250 branches with part-time officers) and Retail FTEs include 331 dedicated Branch Restructuring Officers c.2,400 FTEs *** including supporting RBU FTEs (loan admin, external legal, other vendors, in excess of 500 FTEs in total) Commercial Workouts Real Estate 43 ASSET QUALITY

44 RBU RETAIL & SMALL BUSINESS (Q1.2018) RBU continues focusing on Collections, especially in the early delinquency stages and the Restructured Portfolio, to increase Curing of NPEs. Systems, processes and organizational structure are aligned to this direction Deep restructuring solutions are fully into production for Retail, after initial launch at the end of The same approach has been approved for the SB segment and will be launched within Q2.18. REO strategy enhanced, with the introduction of collateral marketability scoring and credit bidding methodology Retail Workout processes are continuously being optimized and actions regarding automations have been designed and implemented, resulting in acceleration of legal actions, addressing of the pool of L.3869 and overall strategy optimization ( bn %) Balances ( bn) Customers (2) (#) ( bn %) Balances ( bn) Customers (#) Retail RBU (1) ,695 Buckets Current (0 dpd) ,063 Deliquent (1-90 dpd) ,978 NPL (90+ dpd, Denounced) ,020 Small Business Loans RBU ,750 Buckets Current (0 dpd) 0.4 6,112 Deliquent (1-90 dpd) 0.2 2,124 NPL (90+ dpd, Denounced) 0.3 8,249 (1) Retail RBU includes Mortgages, Consumer Loans, Credit Cards and Agri RBU Loans (2) Retail Customers include Mortgages, Consumer Loans, Credit Cards, Agri Loans and SBLs RBU The number of Customers does not add up due to multiple relationships 44 ASSET QUALITY

45 RBU CORPORATE & SME (Q1.2018) Deeper solutions are being offered to all customers, who demonstrate willingness to cooperate and reach a mutual agreement with the Bank Enforcement actions are pursued towards the non-cooperative debtors and those with no capacity for repayment Monitoring of payment behavior following the restructuring is being intensified REO strategy enhanced, with the introduction of collateral marketability scoring and credit bidding methodology A new interbank platform for common SME borrowers is at last stages of creation Solar. Portfolio sales are in the pipeline and more will be examined in the future ( bn %) Balances ( bn) Customers (#) ( bn %) Balances ( bn) Customers (#) Corporate RBU Buckets Current (0 dpd) Deliquent (1-90 dpd) NPL (90+ dpd, Denounced) SME RBU 2.5 1,399 Buckets Current (0 dpd) Deliquent (1-90 dpd) NPL (90+ dpd, Denounced) The number of Customers does not add up due to multiple relationships 45 ASSET QUALITY

46 RBU COMMERCIAL WORKOUT (Q1.2018) Foreclosure actions are intensified and a large number of auctions are already scheduled throughout 2018 The realization of auctions is expected to increase the number of customers who would seek a settlement with the Bank REO strategy will be further enhanced, with the introduction of collateral marketability scoring and credit bidding methodology ( bn %) Balances ( bn) Customers (#) Commercial Workout (1) ,321 Buckets Current (0 dpd) 2.2 4,252 Deliquent (1-90 dpd) NPL (90+ dpd, Denounced) ,835 (1) Commercial Workout includes Corporate, SMEs and SBLs The number of Customers does not add up due to multiple relationships 46 ASSET QUALITY

47 RBU PERIMETER RBU Balances Overview (NPL) (in bn, 31 Mar. 18) RBU Balances by Segment (NPL) (in bn, 31 Mar. 18) NPL balances Balances (<90dpd) < 90 days past due (dpd) > 90 days past due (dpd) Managed by non-rbu units - Transfer in subsequent wave RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post restructuring) Total Piraeus Non RBU RBU Retail Small Business Corporate & SME Commercial Workout Note: figures display amounts for Piraeus Bank Greece. Sums of figures may deviate from totals due to rounding 47 ASSET QUALITY

48 RBU BUSINESS CUSTOMERS VIABILITY MAPPING Corporate & Shipping SMEs Commercial Workouts RBU portfolio: RBU portfolio: RBU portfolio: 377 customers 1,399 customers 34,321 NPL cases 5.8 bn total loan balances 2.5 bn total loan balances 10.9 bn total loan balances Operating businesses 283 or 75% of total 4.6 bn or 77% of total Viable (positive EBITDA) Operating businesses 1,192 or 85% of total 2.1 bn or 84% of total Viable (positive EBITDA) Denounced loans >100k 8,413 or 28% of total 7.9 bn or 93% of total Operating cases Mapping takes into account borrowers needs, viability and affordability in a through-thecycle approach Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters 221 or 78% of operating cases 3.9 bn loans or 86% of operating cases 1,052 or 88% of operating cases 1.9 bn loans or 88% of operating cases 4,622 or 55% of denounced >100k 4.6 bn loans or 58% of denounced >100k 87% of balances related to operating SMEs, Corporate & Shipping refer to customers that are deemed viable displaying positive EBITDA Note: Data as of 31 Mar ASSET QUALITY

49 MORE THAN 45% OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT Retail Loan Balances Under the Protection of L.3869/2010 (bankruptcy law for individuals) - all classified as NPEs Secured Loans Unsecured in mn March 2018 Total Mortgages Consumer Total Total Secured & Unsecured Total 2,460 2, ,372 o/w final court decision in favor of customer in favor of the Bank % of court decisions in favor of Bank 44% 44% 44% 52% 46% 46% of 940mn of cases that had been filed and were dealt by the courts, have been rejected [data up to Mar.2018] Rejected cases of 437mn [data up to Mar.2018] will be repaid at par from the customer, as the court decided that they have the ability to repay the debt in full Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3 debt settlement plans are usually foreseen: monthly payments over 4 years monthly payments over 20 years towards the preservation of the owned primary residence, if such exists; these are calculated based on 85% of such property s commercial value sale or exploitation of other real estate 49 ASSET QUALITY

50 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPE/NPL DELEVERAGE Changes Introduced in Seizures and auctions expedited (from months to <12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65%-100% of the commercial value). Significant reduction of relevant cost for the banks (c.20%) Expedition of insolvency process Efficiency of consolidation process (art. 99) - enforcement proceedings can be stayed, when 30% of the creditors (20% of which hold debt secured with liens/encumbrances) agree to participate in the consolidation process which has a maximum duration of 12 months Simplification and expedition of the winding-up process A process of bankruptcy for natural persons, similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L.3869/2010, lastly modified with L.4346/2015) Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court. The payment plan should comply with the no creditor worse off principle The only protected asset under the law is the debtor s primary residence. Certain criteria apply for eligibility. Pool A (family with 2 kids): property taxable value < 200k and income < 21k. Pool B (family with 2 kids): property taxable value < 260k and income < 35k. In order to ensure a residence protection, the debtor must submit a payment plan for all his/her creditors Amendments for immediate liberalization of management and sale of all performing and non-performing loans, with temporary exception for the sale of NPLs secured by primary residence with an objective value of the property up to 140k, for which the liberalization will enter in force on Changes Introduced in 2017 Law 4469/2017 on Out of Court Workouts ( OCW ) introduces a new process of extrajudicial settlement of debts > 20,000 to the extent that the restructuring of such debts is considered by all participants as necessary for the sustainability of the debtor s business. The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters Law 4472/2017 introduced, among others: (a) (b) (c) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials, when involved in debt restructuring, provided that such restructuring is in compliance with a set of objective criteria (indemnity) amendments to the legal framework for the licensing and operating of banking receivables servicing platforms with the purpose to simplify the process and documentation required and an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists Changes Introduced in 2018 Measure for carrying out solely e-auctions of foreclosed property will commence in 21 Feb The measure affects all auctions, regardless of when a foreclosure notice was imposed The Code of Civil Procedures introduces the preferential coverage of the banks claims from auctions proceeds, provided that the following cumulative conditions are satisfied: i) new financing post , ii) with new underwriting/mortgage/or pledged collateral of 1st class and iii) this collateral is auctioned 50 ASSET QUALITY

51 04. EU STRESS TEST

52 STRESS TEST MACRO ASSUMPTIONS: 2018 VS EXERCISE 2018 Stress Test 2015 Stress Test Baseline Scenario y y Real GDP annual growth (%) HICP annual growth rate (%) Unemployment rate (end year,%) GDP is assumed to grow 7.5% in under the baseline scenario of 2018 ST; in the 2015 exercise GDP was assumed to contract 3.5% (cumulatively in the 2.5years from Jun.15 to Dec.17) Residential real estate prices (%) Commercial real estate prices (%) Adverse Scenario y y Real GDP annual growth (%) HICP annual growth rate (%) Unemployment rate (end year,%) The adverse scenario assumes a 3.3% GDP decline in for the 2018 ST, compared to a 10% decline of the 2015 exercise (cumulatively in the 2.5years from Jun.15 to Dec.17) Residential real estate prices (%) Commercial real estate prices (%) Source: EBA, compound growth rates 52 EU STRESS TEST

53 2015 Greek Banks Stress Test 2018 EU-Wide Stress Test CET-1 DEPLETION IN 2018 VS EXERCISE 15.1% 14.8% 14.5% -0.3% 1 Baseline effect of -0.3% in 2018 exercise, just as in % -8.9% Q4.17 CET-1 Starting point Q4.17 CET-1 restated for IFRS9 Baseline scenario effect 2020 CET-1 Adverse scenario effect 2020 CET % Q2.15 CET-1 Starting point Q2.15 CET-1 post AQR adjustment 5.5% 5.2% -0.3% Baseline scenario effect 2018 CET-1 Adverse scenario effect -7.8% -2.4% 2018 CET-1 2 Adverse effect of -8.9% in 2018 ST exercise, demonstrating that the Bank can withstand a higher adverse effect when compared to the 2015 ST adverse effect, which was -7.8% Note: starting point in 2018 exercise adjusted for IFRS9 phase-in starting point adjusted for AQR, which is not applicable to EU STRESS TEST

54 STRESS TEST PPI & LLR PROJECTION IN 2018 VS EXERCISE ST estimate 3Y PPI ST estimate 3Y LLRs 3,637 3,542 Prudent assumptions adopted on capital generation capacity, impacting the PPI forecast estimates: 1 the 3-year cumulative baseline PPI was assumed at 2.4bn in 2015 ST, while the 2018 ST PPI was at 2.1bn for the 3-year period 2,431 2,148 1, PPI Baseline PPI Adverse LLR Baseline LLR Adverse amounts in mn 2 3 the 3-year cumulative adverse LLR was at 3.5bn in the 2018 ST adverse, relatively at the same level as in 2015, albeit de-risking efforts taken by the Bank in the meantime the Stress Test Methodology is based on a static balance sheet approach, and, in principle, does not incorporate planned or ongoing initiatives 54 EU STRESS TEST

55 CUMULATIVE CET-1 IMPACT: BASELINE SCENARIO OF 2018 STRESS TEST Cumulative Baseline CET-1 Impact: -0.3 ppts Depletion Depletion vs reported CET-1 level post restatement due to IFRS9 transition 2.0% 8.9% 1 Under the baseline scenario, CET-1 depletion amounts to -0.3ppts resulting in a 3year end CET-1 ratio of 14.5% 15.1% -0.3% 14.8% -6.7% -1.6% -0.8% -2.2% 14.5% 2 Distribution of projected credit losses: bn, bn, bn, driving the ratio of LLRs to gross loans to 31% from 29% 2017 CET-1 5% IFRS9 Phase-in 2017 CET-1 post adjustment NII NFCI OpEx Credit Risk Additional IFRS9 Phase-in Other* 2020 CET-1 3 Exercise assumes Opex remains static at 2017 levels * Other incorporates effects stemming by operational risk, CoCo payment, REO, other phased-in deductions 55 EU STRESS TEST

56 CUMULATIVE CET-1 IMPACT: ADVERSE SCENARIO OF 2018 STRESS TEST Cumulative Adverse CET-1 Impact: -8.9 ppts Depletion Depletion vs reported CET-1 level post restatement due to IFRS9 transition 2.0% 6.7% 1 Under the adverse scenario, CET-1 depletion amounts to -8.9ppts resulting in a 3year end CET-1 ratio of 5.9% 15.1% -0.3% 14.8% -6.7% -6.9% -0.8% -3.2% 5.9% 2 Distribution of projected credit losses: bn, bn, bn, driving the ratio of LLRs to gross loans to 35% from 29% 2017 CET-1 5% IFRS9 Phase-in 2017 CET-1 post adjustment NII NFCI OpEx Credit Risk Additional IFRS9 Phase-in Other* 2020 CET-1 3 Exercise assumes Opex remains static at 2017 levels * Other incorporates effects stemming by operational risk, REO, other phased in deductions 56 EU STRESS TEST

57 L I Q U I D I T Y L I Q U I D I T Y

58 GREEK MARKET LIQUIDITY GRADUALLY RESTORED Deposits & Βanknotes in Circulation ( bn) 300 Deposits Currency in Circulation Banknotes at 34bn in Apr.18, - 17bn vs. Jun.15 peak Eurosystem Funding ( bn) ELA ECB Eurosystem at 22bn in Apr.18 (ELA 10bn, ECB 11bn), - 105bn vs. Jun.15 peak Loans & Deposit Balances (private sector, bn) Net Loans to Deposits Ratio (%) Deposits Loans Deposits up 8bn in Apr.18 yoy Loans down 14bn yoy in Apr.18, o/w 6bn write-offs 140% 120% LDR at 103% in Apr.18, -35pp vs. Jun.15 peak % 80% 103% % 40% Source: Bank of Greece; on top of write-offs, the loan market has been impacted by c. 4bn FX fluctuations and other adjustments 58 LIQUIDITY

59 DOMESTIC DEPOSITS PICKING UP Domestic Deposit Mix (%) Greek market Piraeus - Greece Greek market Piraeus - Greece Customer Deposit Movement in Greece ( bn) 64% 60% 74% 77% % 40% Mar.18 Mar.18 26% 23% Mar.18 Mar.18 Time deposits Savings-Sight deposits Business Retail Dec.15 Δ Q1.16Δ Q2.16Δ Q3.16Δ Q4.16 Dec.16 Δ Q1.17Δ Q2.17Δ Q3.17Δ Q4.17 Dec.17 Δ Q1.18 Mar.18 Deposit Movement by Segment ( bn) Piraeus Q1.18 delta Mar.18 balance Mass Farmers Affluent Private Banking SB SME Corporate Govt & Other Total LIQUIDITY

60 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 Dec.17 Mar.18 Dec.14 Dec.15 Dec.16 Mar.17 Jun.17 Sep.17 Dec.17 Mar.18 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 to < 1bn area in late May ELA collateral buffer estimated at 12bn, based on existing collateral valuation and haircuts 60 LIQUIDITY

61 Dec.16 Jan.17 Feb.17 Mar.17 Apr.17 May.17 Jun.17 Jul.17 Aug.17 Sep.17 Oct.17 Nov.17 Dec.17 Jan.18 Feb.18 Mar INTERBANK REPO ACTIVITY Funding from Non-ECB Eligible Collateral ( bn) 2.3bn Interbank Repos Τrends Following the completion of the ESM bond exchange, in the framework of short term measures for Greek Public Debt relief, Piraeus Bank holds no EFSF/ESM bonds as of late-november 2017 Initiation of interbank repo activity with non-ecb eligible collateral in the past 12 months; balance at 2.3bn at the end of Mar.18, further increased to 2.5bn as of mid-may at a cost below ELA Increased volumes assisting reduction of Eurosystem reliance 61 LIQUIDITY

62 COVERED BOND PRIVATE PLACEMENT TRANSACTION First covered bond issuance by Piraeus Bank and the first time that international financial organizations invest in covered bonds issued by Greek banks to support Greek entrepreneurship, since the beginning of the financial crisis Piraeus Bank issued a new 5-year 500mn covered bond in October 2017, under Piraeus Bank s 10bn Covered Bond Programme The issue was an FRN, 3mEuribor + 250bps Conditional Pass-Through structure The issue constituted an innovative financing scheme in which international financial organisations invested in a covered bond issued by a Greek bank for the first time The covered bond was primarily placed among supranational organisations, namely the European Investment Bank (EIB), the European Investment Fund (EIF) and the European Bank for Reconstruction and Development (EBRD); Credit Suisse acted as Dealer Manager in the transaction The significant size of drawn liquidity, long tenor and competitive all-in cost of funding achieved further highlight the importance of this landmark transaction 62 LIQUIDITY

63 CAPITAL CONTROLS UPDATE: FURTHER RELAXATION AS OF FEB ministerial decisions since imposition of Capital Controls, indicating a gradual relaxation of the relative framework Cash Withdrawal Limit New Account Opening Additional Account Beneficiary Transfers from abroad 100% of cash deposited after can be withdrawn 840 equivalent per fortnight per customer (applicable up to ) 1,800 equivalent per month per customer (applicable from ) 2,300 equivalent per month per customer (applicable from ) Allowed for existing (as of ) customers Subject to specific criteria, e.g. primary payroll account, for new customers Allowed for new customers that do not have other account with other Greek Banks Allowed with no exceptions (applicable from ) Allowed for existing (as of ) customers Prohibited for new customers (till ) Allowed (applicable from ) 100% of incoming funds can be re-transferred abroad 10% of incoming funds received before can be withdrawn in cash 30% of incoming funds received between and can be withdrawn in cash 50% of incoming funds received after can be withdrawn in cash 100% of incoming funds received after can be withdrawn in cash Purchase of Greek Mutual Funds Greek Capital Market Instruments Foreign Investments Liquidation Change of Custodian Bank Allowed Allowed Proceeds can be re-invested Prohibited when changing to foreign custodian Outgoing Wire Transfers abroad Private individuals can transfer up to 2,000 per 2 months Trade Related Payments < 700k approval at bank level Weekly limit for bank-level committee at 250mn > 700k approval by the Banking Transactions Approval Committee Time Deposit Break Allowed Early Loan Repayment Allowed 63 LIQUIDITY

64 06. A P P E N D I X

65 NEW STRUCTURE 65 APPENDIX

66 06 George Handjinicolaou Chairman Non Executive Chairman Chair of the Strategy Committee Former Deputy CEO of ISDA where he served since 2011, Senior Management positions in Dresdner Kleinwort Benson, Bank of America Merrill Lynch and UBS in London and New York Christos Megalou Managing Director (CEO) Chair of the Executive Committee Former CEO of Eurobank Ergasias SA, Vice-Chairman of Southern Europe of Credit Suisse Investment Banking, Distinguished Fellow (Global Federation of Competitiveness Councils) George Georgakopoulos Executive Members Executive General Manager, Piraeus Legacy Unit Member of the Executive Committee Former CEO of Eurobank Romania (BancPost), former CEO of 4Finance Solomon Berahas Non Executive Members Member of the: Risk Management Committee, Audit Committee, Board Members Nomination Committee, Remuneration Committee CEO of Tiresias SA, Group Risk Director at Eurobank Alexander Blades Member of the: Risk Management Committee, Remuneration Committee, Board Members Nomination Committee, Strategy Committee Partner at Paulson & Co. Inc Per Anders Fasth HFSF Representative, Member of the: Risk Management Committee, Audit Committee, Board Members Nomination Committee, Remuneration Committee, Strategy Committee Former CEO of SBAB Bank and Senior Executive of SEB Non Executive Board member of Scandinavian banks / financial institutions Independent Non Executive Members Chair of the Remuneration Committee, Chair of the Nominations Committee, Member of the Strategy Committee and of the Risk Management Committee Former Senior Advisor to IMF, banks and organizations 6.2 BOARD OF DIRECTORS Karel De Boeck Vice Chairman Chair of the Risk Management Committee, Member of the Audit Committee, Strategy Committee Former CEO at Dexia and Fortis Group, Former Vice Chair of ABN AMRO Bank and Holding NV Arne Berggren Enrico TommasoCucchiani Member of the: Audit Committee, Board Members Nominations Committee, Remuneration Committee, Strategy Committee Former CEO of Intesa San Paolo, CEO of Think Global Investments, Management Board of Allianz David Hexter Chair of the Audit Committee, Member of the: Risk Management Committee, Board Members Nominations Committee, Remuneration Committee, Strategy Committee Chair and Board member of banks, commercial institutions (EBRD, Citi, Supervisory Board member Zachodny Bank) Venetia Kontogouris Founder and Managing Director of Venkon Group, LLC Family operated business with PE investments, VC investment in hi-tech Real Estate portfolio consisting of commercial and residential development 66 APPENDIX

67 SHAREHOLDER STRUCTURE Piraeus Shareholder Structure (Mar.2018) Individuals 5% HFSF 26% Shareholder structure of Piraeus Bank presents great diversity; total number of common shareholders 30k The Hellenic Financial Stability Fund holds 26% of outstanding common shares The remaining 74% is held by the private sector; 68% by legal entities and 6% individuals Institutional Investors & Legal Entities 69% Strong international presence with significant part of free float held by foreign institutional investors Common Shares Private sector HFSF Total 322 mn 115 mn 437 mn 67 APPENDIX

68 PIRAEUS BANK LEADING POSITION IN GREECE Gross Loans - Greece Customer Deposits - Greece Greek Branch Network 35% business 597 in March 30% 30% % 28% % 21% % 18% 396 2% 1% 55 Source: Bank of Greece for Greek market data and financial information for banks, as of Dec APPENDIX

69 06 Customer Satisfaction Survey Overall Experience Q.: Having in mind your banking experience with Piraeus Bank, how would you rate it overall? 6.5 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT Excellent Very Good Good Moderate Poor 24% 45% 25% 4%1% : 92 Preference Score Q.: How strongly do you prefer Piraeus Bank to any other bank? : 82 TRI*M Index Sample size n=15.3k customers Extremely Very Strongly Strongly Moderately At all N/A TRI*M Index Benchmarks - Banking Top-10% Index 94 18% 27% 43% 8% 3%2% 75 Top-33% Index 81 TRI*M Index Mean : 72 Bottom-33% Index 68 Bottom-10% Index 56 The customer retention index TRI*M (Measuring, Managing and Monitoring) shows the strength of relationship between the customer and the Bank, taking into account their overall experience with and their preference to the Bank. Source: TNS normative database, Europe, 536k interviews among retail bank customers (Y2013-Y2016) 1 Quantitative research, using Computer-Assisted Telephone Interviewing (CATI). Fieldwork was conducted between June 20th and August 9th 2017 by KANTAR TNS 69 APPENDIX

70 Cost Savings Experience & Revenue Increase TECHNOLOGY DRIVER FOR COST REDUCTION AND INCREASE CUSTOMER EXPERIENCE & REVENUES 1 Apply innovation to streamline day to day processes: e-signature remote teller paperless cashier printers for passbook update issuance of prepaid cards Exploit usage of cloud outsourcing services for day to day operations Introduce video Identification in new customer registration to reduce cost Continuous process review and reengineering Sustain high level of IT systems security Introduce a new data governance framework to secure data quality and completeness Continuous alignment with regulatory and supervisory requirements New services for people with specialized banking service needs 2 Value Based Management system Extend bank-wide loyalty cooperation Full operation of 4 e-branches in Attica region Continuous reform of internet banking and mobile banking platforms Enforce transaction migration from branch to digital channels Remote servicing through internet banking and mobile banking (esignature) Extend video banking applications to increase customer accessibility & experience Ιntroduce new full automated processes and instant credit tools Create new fast track services through appropriate automated workflows Adopt efficient new technologies (BYOD, Big Data, Block Chain, Advanced Data Analytics) 70 APPENDIX

71 06 Transactions to be migrated to ATMs Transactions to be migrated online Type of transaction Cash withdrawal Migration rate Dec % Cash deposit 44% 50% 50% Passbook update Bill payment (including taxes) 89% 79% 63% Migration rate Mar-2018* 90% 97%** 71% Migration rate target End % Fund transfers 83% 86% 90% Total potential target to migrate a further 35mn teller transactions per annum 100% 6.7 DIGITALISATION Initiatives Meeter-greeter role in branches to guide and train customers with the use of facilities Installation of deposit-taking ATMs within branches Usage of analytics to target heavy teller users with campaigns and incentives Policy changes eliminating option to use cashier for certain transactions (e.g. passbook updates dependent upon deployment of paperless cashier by end of year) Further enhancements of the services offered in e-branches Revamping of online and mobile channels, targeting less technology-savvy customers by emphasising simplicity, speed and security In-branch education of customers TOTAL 77% 83% 86% More than 90% for 2020 * the KPI measures the performance as of ** average to-date. Full roll-out of paperless cashier on track - to be in all branches, in 2018 is expected to be 100% 71 APPENDIX

72 06 Greece ( mn) Q4.17 Q1.18 qoq Q1.17 yoy Net Interest Income % % Net Fee Income % 73 1% Trading & Other Income % Total Net Revenues % % Total Net Revenues (recurring) % % 6.8 GROUP RESULTS: DOMESTIC & INTERNATIONAL International ( mn) Q4.17 Q1.18 qoq Q1.17 yoy % 21-7% 6 6-4% 5 16% (9) % % 31-11% % 31-11% Employee Costs (151) (257) 71% (130) 98% Employee Costs (recurring) (134) (119) -11% (130) -8% Administrative Expenses (144) (96) -33% (106) -9% Depreciation & Other (27) (26) -3% (24) 12% Total Operating Costs (322) (380) 18% (260) 46% Total Operating Costs (recurring) (306) (242) -21% (260) -7% (7) (7) 4% (6) 17% (7) (7) 4% (6) 17% (10) (9) -8% (9) 4% (2) (1) -8% (1) 8% (18) (17) -4% (16) 9% (18) (17) -4% (16) 9% Pre Provision Income % % Pre Provision Income (recurring) % % % % Result from Associates (7) (8) 18% (8) -6% Impairment on Loans (1,128) (159) -86% (255) -37% Impairment on Other Assets (109) 11 - (8) - (2) (1) -68% 1 - (54) (5) -91% (3) 53% (15) (20) - (2) - Pre Tax Result (1,100) (101) - (26) - Pre Tax Result (recurring) (1,100) 37 (26) - Tax 1, (13) - Net Result Attrib. to SHs 66 (66) - (13) - Net Result Attrib. to SHs (recurring) (13) - (71) (15) (71) (15) (55) (14) (55) (14) Discontinued Operations Result (14) (4) - (1) - (110) 2 - (4) - 72 APPENDIX

73 LOAN & DEPOSIT PORTFOLIOS Gross Loans Evolution ( mn) Deposits Evolution ( mn) Dec.16 Mar.17 Jun.17 Sep.17 Dec.17 Mar.18 yoy qoq Group 64,947 63,787 62,048 61,035 58,627 57,702-10% -2% Business 42,511 41,719 40,389 39,645 37,962 37,276-11% -2% Mortgages 16,162 15,950 15,696 15,507 15,183 15,007-6% -1% Consumer 6,274 6,118 5,964 5,883 5,482 5,419-11% -1% Greece 61,296 60,216 58,905 57,936 56,597 55,680-8% -2% Business 39,792 39,069 38,027 37,312 36,317 35,655-9% -2% Mortgages 15,707 15,502 15,330 15,143 14,973 14,797-5% -1% Consumer 5,797 5,646 5,548 5,480 5,307 5,229-7% -1% Int l 3,650 3,571 3,143 3,099 2,030 2,022-43% 0% Business 2,719 2,650 2,362 2,333 1,645 1,621-39% -1% Mortgages % 0% Consumer % 9% Dec.16 Mar.17 Jun.17 Sep.17 Dec.17 Mar.18 yoy qoq Group 42,365 40,960 40,918 41,822 42,715 43,151 5% 1% Savings 14,995 14,294 14,379 14,285 15,134 14,945 5% -1% Sight 11,190 10,676 10,860 11,372 11,682 10,982 3% -6% Time 16,179 15,990 15,679 16,165 15,900 17,225 8% 8% Greece 39,322 38,036 38,185 39,075 40,889 41,404 9% 1% Savings 14,613 14,001 14,069 13,967 14,825 14,624 4% -1% Sight 10,536 9,964 10,123 10,592 11,125 10,473 5% -6% Time 14,172 14,071 13,993 14,516 14,938 16,308 16% 9% Int l 3,043 2,924 2,733 2,746 1,826 1,747-40% -4% Savings % 4% Sight % -8% Time 2,007 1,919 1,686 1, % -5% Notes: loan balances exclude seasonal agri-loan of 1.7bn and 1.6bn for Dec.16 and Dec.17 respectively; Serbian operations excluded from Jun.17 onwards, whereas Piraeus Bank Romania from Dec.17 onwards 73 APPENDIX

74 IFRS9 IMPACT & SEGMENT ANALYSIS GROUP 1,620mn impact 1% 4% IFRS9 ( bn) Impact Greek Lending 1.5 Mortgages 0.2 Consumer 0.4 Business 0.9 International Lending 0.0 Other 0.1 Total % Greek Lending International Lending Securities & Other The main impact of IFRS 9 (FTA) was concentrated in Stages 2 and 3 Stage 2 incorporates the recognition of lifetime losses for exposures significant increase in credit risk since their initial recognition. Stage 3 holds the highest coverage of all 74 APPENDIX

75 CONTINGENT CONVERTIBLE BONDS Term & Ranking Perpetual Pari passu with common equity, junior to all claims of all creditors (including subordinated) at special liquidation of issuer Issue Size 2,040,000,000 Basel III Classification Classified as Common Equity Tier 1 Coupon Initial 7 years 8% per annum (initial interest rate). Post 7 years, interest rate calculated as prevailing 7y Mid-swap rate + (8% less 7y Mid-swap rate at issuance: per cent, p.a.) Payment of interest Annual Fully discretionary & Paid in cash or shares Coupon is tax deductible, impacting directly equity position as dividend No dividend shall be paid on the issuer s common stock if issuer has decided not to pay the previous coupon payment in full Conversion events The securities shall automatically convert into ordinary shares if: At any time the CET1 ratio, calculated on a consolidated basis or a solo basis, falls below 7% 2 annual coupons are missed (in whole or in part, and do not need to be consecutive) Optional to the holder at 7 th anniversary of issuance Conversion consideration The number of common shares issued on conversion is determined as 116% of the nominal amount of the outstanding securities divided by the conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions Option to repay The issuer may, in its sole discretion, repay all or some only of the bonds at any time subject to approval by the ECB acting within the framework of SSM, at their initial nominal amount plus any interest accrued but unpaid, unless cancelled Applicable law Greek law Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator, per Art. 7(5)(b) of the HFSF Law 75 APPENDIX

76 COVERAGE PER SEGMENT Coverage per Segment (Mar.2018) Piraeus Group NPL Ratio % Cash Coverage % Collateral Coverage % Total NPL Coverage % NPE Ratio % Cash Coverage % Collateral Coverage % Total NPE Coverage % Business loans 36% 89% 40% 129% 61% 52% 46% 98% o/w SB 46% 73% 42% 115% 63% 54% 47% 101% o/w SME 47% 82% 42% 124% 70% 54% 50% 104% o/w Corporate & Shipping 21% 117% 34% 151% 51% 48% 38% 86% Mortgage loans 30% 44% 66% 110% 42% 32% 66% 98% Consumer loans 48% 94% 17% 111% 57% 79% 18% 97% Total loans 36% 80% 43% 123% 56% 51% 47% 98% 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 at 98% Coverage of business NPEs relatively balanced between provisions & collateral, while consumer loans are tilted towards provisions and mortgage loans towards collateral coverage 76 APPENDIX

77 OVERVIEW OF INTERNATIONAL OPERATIONS Market Shares Loans Deposits Albania 5.6% 6.0% Bulgaria 3.1% 2.8% Ukraine 0.2% 0.2% Subsidiaries Bulgaria Branches (#) 72 Employees (#) 993 Assets 1,496 Net loans 747 Deposits 1,098 Albania ( mn, as at Mar.2018) Branches (#) 39 Employees (#) 445 Assets 589 Net loans 172 Deposits 447 Total International 1 Branches (#) 131 Employees (#) 1,855 Assets 3.1bn Net loans 1.5bn Deposits 1.7bn ¹Consolidated financial data for international operations Ukraine Branches (#) 18 Employees (#) 386 Assets 107 Net loans 50 Deposits 50 Branches London Frankfurt Branch (#) 1 Employees (#) 20 Assets 729 Net loans 523 Deposits 18 Branch (#) 1 Employees (#) 11 Assets 168 Net loans 26 Deposits APPENDIX

78 GLOSSARY DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES 1 NII Net Interest Income 2 DTAs Deferred Tax Assets 3 PPA adjustment 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 5.6bn at the end of Q1.18 and to 5.8bn at the end of Gross Loans before Impairments & Adjustments 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 5.6bn at the end of Q1.18 and to 5.8bn at the end of Net Loans 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 5.6bn at the end of Q1.18 and to 5.8bn at the end of Net Loans to Deposits Ratio (LDR) 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 Total net income excluding in Q1.2017, 21mn of net income from the sale of EFSF bonds to the Central Bank 9 Pre Provision Income (PPI) Total net income less total operating expenses excluding one-off items. In Q1.2017, 21mn of net income from the sale of EFSF bonds to the Central Bank, In Q4.2017, 16mn of Voluntary Exit Scheme staff costs and in Q1.2018, 138mn of Voluntary Exit Scheme staff costs were classified as one-off items. The relevant amounts corresponds to Profit before provisions, impairments and income tax excluding the one-off items 10 Cost to Income Ratio (C:I) Total operating expenses before provisions over total net income excluding one-off items 11 Capital adequacy ratio Total regulatory capital over risk weighted assets 78 GLOSSARY

79 GLOSSARY DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (cont d) 12 CET1 phased in 13 CET1 fully loaded CET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated disposals of Piraeus Bank Romania, Dunant and NPE portfolios CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated disposals of Piraeus Bank Romania, Dunant and NPE portfolios 14 CET-1 -IFRS 9, Jan.18 pro-forma 15 Adjusted total assets Ratios as per item 12 above (for phased-in) or item 13 above (for fully loaded), taking into account the impact from first time adoption of IFRS 9 on 1 January 2018 Total assets excluding assets of discontinued operations amounting to 2.3bn and EFSF/ESM bonds amounting to 1.5 bn in December 2017 and assets of discontinued operations amounting to 1.8bn in March Net Interest Margin (NIM) Net interest income over adjusted total assets. 17 Net Fee Income over Assets Net fee and commission income over adjusted total assets 18 NPLs - Non Performing Loans 19 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 20 NPL Ratio Non-performing loans over gross loans before impairments & adjustments 21 NPE Ratio Non-performing exposure over gross loans before impairments & adjustments 79 GLOSSARY

80 GLOSSARY DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (cont d) 22 NPL Coverage Ratio 23 NPE Coverage Ratio 24 NPE Formation 25 NPL Formation 26 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) 27 Net Fee Income (NFI) Net fee and commission income 28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans 29 Return on Assets (RoA) Profit / (loss) for the period over adjusted total assets 30 Net Results or Net Profit Profit / (loss) for the period attributable to equity holders of the parent 31 Cumulative provisions (Loan loss reserves LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment 32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments 33 Operating Expenses (OpEx) Total operating expenses before provisions 80 GLOSSARY

81 GLOSSARY DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (cont d) 34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers 35 Pre Tax Results Profit / (loss) before income tax 36 New Loan Generation New loan disbursements that were realized after previous end period 37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank 38 Cross Selling Ratio Total product groups over total number of customers 39 ELA/Total Assets ELA / Total adjusted Assets 40 NFI (NF&CI) Net fee and commission income 41 G&A Costs Administrative expenses 42 DTC Deferred tax credit 43 PPE Property and equipment plus investment property 44 Tangible Book Value Equity minus value of cocos ( 2,040 mn) minus goodwill and intangibles ( 305 mn) 45 FTEs Full time employees 81 GLOSSARY

82 DISCLAIMER The accompanying presentation has been prepared by Piraeus Bank S.A. and its subsidiaries and affiliates (the Bank or We ) solely for informational purposes. For the purposes of this disclaimer, the presentation that follows shall mean and include materials, including and together with any oral commentary or presentation and any question-and-answer session. By attending a meeting at which the presentation is made, or otherwise viewing or accessing the presentation, whether live or recorded, you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the presentation or any information contained herein. The information contained in this presentation is confidential and is solely for the use of the intended recipient. 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83 COMMUNICATION Investor Relations Contacts Chryssanthi Berbati Antonis Sagris Xenofon Damalas, CFA Αmalia Missailidi George Doukas 4 Amerikis St., Athens Tel. : (+30 ) investor_relations@piraeusbank.gr Bloomberg: TPEIR GA Reuters: BOPr.AT ISIN: GRS SEDOL: BYWKR93 Latest update: 30 May