Attica Bank. Click to edit Master text styles Second level. Third level Fourth level Fifth level Η FINANCIAL RESULTS

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1 Attica Bank Η FINANCIAL RESULTS Strategy Department

2 Overview 1. Attica Bank in Η Assets-Loan Portfolio 3. Deposits, Funding 4. Profit & Loss Account 5. Capital Appendix 2

3 1. Attica Bank in Η

4 1. Attica Bank in H1 2015: Results of the 2015 Comprehensive assessment ECB s comprehensive assessment revealed a total capital shortfall of EUR 4.4bn and EUR 14.4bn in aggregate for the four systemic banks, under the baseline and adverse scenarios, respectively. The aforementioned shortfalls include an AQR adjustment of EUR 9.2bn. In line with the Comprehensive Assessment (CA) performed by the ECB for the four significant banks in Greece, the Bank of Greece (BoG) conducted a similar exercise for Attica Bank, following the methodology and overall approach applied by the ECB for the four significant banks. Minimum capital hurdle CET 1 rates were 9.5% under AQR and baseline scenario and 8% under adverse scenario, exceeding the 2014 thresholds by bps (8% under the baseline scenario and 5.5% under the adverse scenario) Base Scenario Adv erse Scenario Capital ( m) Fourth Shortfall to Capital level ( m) CET1 RWA CET 1 ratio reach 9.5% CET 1 ratio at ( m) ( bn) at 9.5% ( m) 8% The Comprehensive Assessment identified a shortfall of 857 million in the baseline scenario and 1,021 million in the adverse scenario. These amounts do not include any capital mitigating actions. These amounts include the capital raise of 434 million that had been identified under the adverse scenario of the previous stress test performed by BoG in Capital shortfall baseline scenario ( billion) Capital shortfall adverse scenario ( billion) ADVERSE vs BASELINE scenario Alpha Bank, S.A x 10.5 Eurobank Ergasias, S.A x 6.2 National Bank of Greece, S.A x 2.9 Piraeus Bank, S.A x 2.2 Attica Bank S.A x 1.2 Shortfall to reach 8% ( m) Capital as at 30/6/2015-Pre AQR AQR Impact -627 AQR Adjusted CET ST Base Case -166 AQR/ST Adjusted CET - Base Case ST Adv erse -222 System wide x 2.9 Sources: ECB, BoG, Attica Bank.. AQR/ST Adjusted CET - Adv erse ,021 4

5 1. Attica Bank in Η Profitability Pre-Provision profit : 41.1 m, up by 18.5% on a y-o-y basis amounts in euro millions Η FY 2014 Change % Net Operating Income : 75.7 m Net Fee and Commission Income: -8.9% on a y-o-y basis Net Interest Margin: 2.92% Personnel Expenses: - 6.4% on y-o-y basis Total Operating Expenses: % on a y-o-y basis (excluding provisions for credit and other risks) Balance Sheet Highlights Stock of provisions: % since FY Extra provisions of 495 m. booked in the second quarter of the year following the AQR performed by BoG. NPE ratio: 49% Coverage ratio: 57% Gross Loans: + 2.2% on a y-o-y basis Total Loans before provisions 3, , % Stock of Provisions 1, % Deposits 2, , % Assets 3, , % amounts in euro millions Η Η Change % Total Net Operating Income % Total Net Fee and Commission Income % Personnel Expenses % General Operating Expenses % Total Operating Expenses (excluding provisions for credit risk) % 4 Deposit outflows rates below sector average in H Capital Pre- Provision profit/(loss) % Provisions for credit risks ,606.5% Following the CA performed by BoG and the assessment of the Bank s capital, the Bank will start the private capital raising process to cover the final estimated capital needs. Data on a consolidated basis Profit / (loss) before taxes % 5

6 2. Assets-Loan Portfolio 6

7 4, , Assets-Loan Portfolio Total Assets, Η Η (euro million) Loans before provisions, Η Η (euro million) -1.5% -9.9% 3, % 3, % 3, ,564.3 H FY 2014 H Breakdown of Total Assets, (as at : 3.56 bn.) Η FY 2014 Η Due to Customers, Η Η (euro million) 3, % 3, % 2,560.5 Η FY 2014 Η Data on a consolidated basis Loans (after provisions) / Due to customers Η FY 2014 Η % 98.1% 106.6% 7

8 Breakdown of the loan portfolio by type, Η (Loans before provisions: 3.79 bn.) State 0.9% Leasing 7.8% Loans to Private Individuals 21.3% 2. Assets- Loan Portfolio Loans to Businesses 69.9% Loans to Private Individuals by type, Η (Total : 0.81 bn.) Loans to businesses by sector, Η (Total : 2.65 bn.) Data on a consolidated basis 8

9 Non Performing Exposures ( euro million) NPE Evolution (euro million) FY 2014 H Impaired, % 35% 44% Cash Coverage 41% 63% Collateral Coverage 51% 51% Total Coverage 92% 114% NPEs, % 44% 49% Cash Coverage 33% 57% Collateral Coverage 59% 52% Total Coverage 92% 109% In the first semester of 2015 context-specific developments and elevated uncertainty affected the repayment capacity of borrowers. As a result of the above and in combination with the limited funding options of private individuals and businesses, non performing exposures increased by million euros during the first semester of the year. Data on a consolidated basis 9

10 3. Deposits, Funding 10

11 3. Deposits, Funding Breakdown of due to customers per type, Η Breakdown of due to customers per type of customer, Η Η Cost of Deposits (stock) 01/ /2015 (bps) Time and Core Deposits, Η Η (euro million) Data on a consolidated basis 11

12 3. Deposits, Funding EuroSystem Funding Deposits: y-o-y changes (%) The Bank's reliance on the ECB and ELA funding as a percentage of total assets as at 30/06/2015 stood at 25%, significantly lower than the sector average. ECB & ELA Funding, % of Total Assets Sector Attica Bank 31/12/ % 4.3% 31/3/ % 12.4% 30/6/ % 25.0% Source: Bank of Greece and Attica Bank Source: Bank of Greece and Attica Bank Shrinking deposit balances due to the deterioration of the macroeconomic environment and introduction of capital controls since June In H deposits amounting to c. 40 bln were withdrawn from the banking system. From December 2014 until June 2015, the Bank's deposits decreased at a pace slower than the system average (- 21% against a sector average of c.- 24%). Data on a consolidated basis 12

13 4. Profit & Loss Account 13

14 4. Profit & Loss account P & L Evolution (euro 000s) Operating income by source (euro 000s) 600, , , ,000 34,674 30,113 41,072 4,560 0 H H , , ,000 Profit before Provisions Provisions for credit risks Profit before Taxes -473,127 OPERATING INCOME H H Net interest income 50, , Net fee and commission income 12, , Gain/ loss from securities 7, , Other income 6, , Total 77, , Operating income by segment (euro 000s) 7,079 2,121 The Group had a pre-provision profit of 41.1 million euros in H1 2015, against a pre-provision profit of 34.7 million euros in H ,856 56,463 The pre-provision profit of the Group displays an increase of 18.5% y-o-y. 9,079 17,141 H H Retail Banking Business Banking Treasury Data on a consolidated basis 14

15 Net Interest Income - Net Interest Margin NII breakdown, (euro 000s) Net Interest Margin (NIM) The NIM (Net Interest Income / Average Interest - bearing Assets) inreased to 2.92% in H (H1 2014:2.79%) Data on a consolidated basis 15

16 Operating Expenses Cost / Income Ratio (excl. provisions) Breakdown of general operating expenses H H % 48.8% Rents 19.4% 19.9% Advertising and promotion expenses 6.3% 2.4% H H Operating expenses breakdown 4.3% 0.4% 23.2% 31.2% 93.3% 2.5% 3.9% Telecommunication expenses 6.1% 7.3% Click Repairs to and maintenance edit Master text 3.3% styles 5.0% Utility Services 4.3% 4.5% Third party fee and expenses 17.0% 17.0% Legal expenses 4.6% 0.8% Visa expenses 4.5% 5.0% Other 34.6% 38.1% TOTAL 100% 100% 41.4% H FY 2014 H H H Provisions for credit risks Salaries and personnel expenses General operating expenses Depreciation Number of Branches Group Employees Data on a consolidated basis 16

17 5. Capital 17

18 5. Capital Equity Breakdown (euro million) In line with the Comprehensive Assessment (CA) performed by the ECB for the four significant banks in Greece, the Bank of Greece (BoG) conducted a similar exercise for Attica Bank. Capital shortfall baseline scenario ( billion) Capital shortfall adverse scenario ( billion) ADVERSE vs BASELINE scenario Risk Weighted Assets (euro million) Alpha Bank, S.A x 10.5 Eurobank Ergasias, S.A x 6.2 National Bank of Click to edit Master text styles x 2.9 Greece, S.A. Piraeus Bank, S.A x 2.2 Attica Bank S.A 0.86 Second 1.02 level x 1.2 System wide x 2.9 assess the specific recapitalisation Fourth needs of Attica level Bank. The Comprehensive Assessment comprised an Asset Quality Review (AQR) and a forward-looking Stress Test, in order to The Stress Test consisted of both a baseline and an adverse scenario, applied for the period between 30 June 2015 and 31 December Attica Bank was required to maintain a minimum Common Equity Tier 1 (CET1) ratio of 9.5% under the baseline scenario and a minimum CET1 ratio of 8% under the adverse scenario. The Comprehensive Assessment identified a shortfall of 857 million in the baseline scenario and 1,021 million in the adverse scenario. These amounts do not include any capital mitigating actions. Following the assessment of the Bank s capital plan from the BoG, Attica Bank will start the private capital raising process to cover the final estimated capital needs. Data on a consolidated basis 18

19 5. Capital Shareholders Capital Structure ETAA TSMEDE 50.67% Other shareholders 49.33% ETAA: The pension fund insuring professionals (civil engineers, lawyers, doctors etc.). TSMEDE: Pension fund of the construction sector (engineers and public works contractors) with about 110,000 members and 21,000 pensioners. Part of ETAA since Free Float: About 20,000 shareholders. No single shareholder holds more than 5% of common shares. 1. Share capital of million euros and is divided into: 1,045,794,145 Common Shares, with a nominal value of 0.30 each, listed on the Athens Stock Click to edit Exchange. Master text styles 286,285,714 Preference shares, with a nominal value of 0.35 each, issued under the Government Support Scheme in 2009 and held by the Greek State. 2. Contingent convertible bond of current outstanding balance of 95.6 million euros converting into million Fourth common level shares of the Bank: In full in 2018 At the option of the bond holders twice a year Compulsorily in the case of a capital contingency event 19

20 Appendix 20

21 Group Results by Segment H FY 2014 H Total (euro millions) Retail Business Banking Investment Banking & Treasury Retail Business Banking Investment Banking & Treasury Retail Business Banking Investment Banking & Treasury H H Change % Operating Income % - Net interest income % - Net fee and commission income % - Income from trading & other income % - Adjustment between segments Income from investments in associates Profit / (loss) before taxes Taxes Profit / (loss) after taxes Provisions for credit risks and securities impairment ,606.5% Depreciation % Total Assets , , , , , % Total Liabilities -2, , , , , , , , % 21

22 Key financial ratios, H H Group Bank Total operating expenses less provisions / Total Assets Operating expenses less provisions / Total operating income H FY 2014 H H FY 2014 H % 2.54% 2.07% 2.04% 2.45% 1.99% 55.37% 82.79% 48.80% 54.69% 82.78% 47.90% NPE ratio 39.20% 44.80% 49.20% 39.20% 44.80% 49.20% Provisions / NPE 32.10% 32.60% 56.70% 32.10% 32.60% 56.70% 22

23 Key financial ratios, H H Group Bank BALANCE SHEET STRUCTURE H FY 2014 H H FY 2014 H Due to Customers / Loans and Advances to customers (before provisions) 90.15% 87.03% 67.65% 90.55% 87.40% 68.05% Due to customers / Total Assets 83.09% 82.26% 71.84% 83.35% 82.48% 72.18% Loans and Advances to customers (after provisions) / Total Assets 80.56% 80.71% 76.56% 80.45% 80.59% 76.47% Total Equity / Total Assets 10.31% 8.97% 1.43% 10.17% 8.82% 1.22% Total Equity / Due to Customers 12.41% 10.91% 1.99% 12.20% 10.70% 1.69% EFFICIENCY Annualized profit before taxes / Average Equity (RoAE) Annualized profit before taxes / Average Total Assets (RoAA) 2.21% % % 1.92% % % 0.23% -2.25% % 0.19% -2.27% % 23

24 By receiving this document, the Recipient accepts and agrees to be bound by the following obligations and limitations: The above material has been prepared by Attica Bank for the exclusive use of the selected parties to whom it is delivered. Neither the whole ore any part of the information in this presentation may be disclosed to, or used by any other person or used for any other purpose without the prior consent of Attica Bank. Neither Attica Bank nor any of its connected persons accept any liability or responsibility for the accuracy or completeness of, nor make any representation or warranty, express or implied, with respect to, the information on which this material is based or that this information remains unchanged after the issue of this presentation. In addition, the reader of the material agrees that Attica Bank and all connected persons neither owe nor accept any duty or responsibility to the former, whether in contract or in tort (including without limitation, negligence and breach of statutory duty), and shall not be liable in respect of any loss, damage or expense of whatsoever nature which is caused by any use the reader may choose to make of this material, or which is otherwise consequent upon the gaining of access to the report by the reader. The content of this material should not be construed as a solicitation or a recommendation. It has been prepared for information purposes only and is purely indicative. It does not constitute an offer or invitation for sale or purchase of securities or any of the businesses or assets described herein or any form of commitment, advice, recommendation or valuation opinion on the part of Attica Bank or its connected persons. No part of this material should form basis of or can be relied upon in connection with any contract or investment decision or commitment relating thereto. This material should not be regarded by the Recipient as a substitute for the exercise of its own judgment and the Recipient is expected to rely on its own due diligence, if it wishes to proceed further. Additionally, the Recipient should not construe the contents of this material as legal, tax, accounting or investment advice. The Recipient should consult its own independent counsel, tax and financial advisers as to financial, tax legal and related matters concerning any transaction described herein. This material does not purport to be all-inclusive or to contain all of the information that the Recipient may require or request. The present material may contain targets, prospects, returns and/or opinions which obviously involve elements of subjective judgment. Any opinions expressed in this material are subject to change without notice. Forward looking statements may also be contained. Attica Bank gives no undertaking and is under no obligation to update these targets, prospects or potential statements for events or circumstances that occur subsequent to the date of this material or to update or keep current any of the information contained herein and this material and there exists no representation that it will do so. Actual results will vary from the projections or targets mentioned and such variations may be material. In this notice Attica Bank means Attica Bank S.A. and its connected persons means the shareholders, subsidiaries and the respective directors, officers, employees and agents of each of them. ATTICA BANK S.A. Contact Information: Strategy Department 23 Omirou Str , Athens, Greece InvestorRelations@atticabank.gr Tel.: , fax: