Q Corporate Presentation

Transcription

1 Q Corporate Presentation September October 2014

2 Table of Contents 01 HIGHLIGHTS 02 Q FINANCIAL RESULTS 03 ASSET QUALITY - RECOVERY BANKING UNIT (RBU) 04 DOMESTIC OPERATIONS 05 INTERNATIONAL OPERATIONS 06 MACRO & BANKING UPDATE 07 APPENDICES 2 Table of Contents

3 01 Highlights 1.1 Q Group Highlights 1.6 ECB Comprehensive Assessment 1.2 Delivering on Restructuring Commitments 1.7 Strongly Capitalized Under Basel III Framework 1.3 Q PPI Drivers 1.8 Among Best Capitalized Banks in Europe 1.4 Medium Term Financial Targets Selected Transactions 3 Highlights

4 Pre provision income continues to improve Q2 recurring PPI at 295 mn up 17% qoq; H1 recurring PPI at 547 mn up 45% yoy Q2 NII at 500 mn up 4% qoq; H1 NII at 979 mn up 11% yoy Recurring Η1 OpEx at 666 mn down 11% yoy despite Q2 seasonality effect Q2 net profit at 164 mn backed by 200 mn of additional DTA recognition Q Group Highlights ΝPL formation significantly contained Q2 formation at 68 bps over gross loans, down 37 bps qoq (Q bn vs. 0.8 bn in Q1) LLR over gross loans at 20% vs. 16% Greek market avg; NPL cash coverage at 51%, 128% including collateral Q2 cost of risk at 2.6%, flat qoq Ongoing improvement to funding profile LTD ratio declines further by 1 ppt qoq at 108% (Greece at 107%) Eurosystem funding over total assets at 6.7%, close to normalized levels Time deposit costs reduction accelerates Continuing decline in Greek time deposit rates: Q average at 271 bps down from 293 bps in Q Front book cost at 204 bps (as of early September 2014) points to levels lower than 200 bps by year-end Synergies materialization continues 65 mn of cost synergies realized in Q2 bringing total synergies realized in H1 to 117 mn 72% of total fully phased synergies, i.e. 398 mn out of 550 mn, have been crystallized to date Branch rationalization target met; new target set for c.800 units 167 branch closures in 2014 ytd brings total rationalization to 484 units in 18 months 28 mn one-off costs in Q2; 79% of total budgeted restructuring costs of 420 mn has been incurred Strong capital position Robust position post 1.75 bn capital increase and repayment of 750 mn State prefs in May 2014 CET-1 ratio 15.0%, with 4.2 bn buffer over 8% threshold; 14.4% fully loaded CET-1 ratio post new DTC law 4 Highlights

5 Delivering on Restructuring Commitments -67 bps -13% % 107% 7% for new Greek time deposits ytd at 204 bps (early Sept.2014) down from 271 bps in the beginning of the 2014; 440 bps in the beginning of 2013 total OpEx in Greece in H1 2014, following a 15% reduction in 2013; 72% of fully-phased acquisition synergies already crystallized branches in Greece ytd (Sept.2014), following 317 branch closures in 2013 headcount in Greece in the last 18 months (16,541 FTEs from 19,238 in Dec.2012) LTD in Greece down from 110% in Q and 119% in Q Eurosystem funding over assets (with zero ELA) down from 12% in Q and 45% in Q Note: comparisons are like-for-like for acquisitions and excludes one off items; net Eurosystem excludes EFSF as collateral pledged with ECB 5 Highlights

6 Q PPI Drivers Banking Income Continues to Increase as Greek Time Deposits Rates Fall Further (bps over assets) NFI NII 4.58% 4.40% 4.41% 4.23% Front Book -213 bps 4.13% 3.64% 3.42% 2.82% 3.05% 2.88% 2.71% 2.66% Total Book -196 bps 2.62% 2.27% Q Q Q Q Q Q Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 OpEx Heading Lower yoy..as Greek Headcount & Footprint Optimizes -11% ( mn) % Q2'13 Q2'14 H1'13 H1'14 Group Greece ,238 1,354 18,624 18,591 18,440 1, branches 1,280 1,218 VES 16,558 16,454 16,541 1,037 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun % Note: all graphs pro forma for all acquisitions in 2013; PL items normalized for one-off items; assets from continued operations excluding EFSF bonds 6 Highlights

7 Medium Term Financial Targets Q Q Medium Term Domestic Market Shares (%) (1) 30% Loans, 29% Deposits 30% Loans, 29% Deposits market leadership Net Interest Margin (%) (2) 2.55% 2.70% >3.20% Cost / Income Ratio (%) 56% (3) 54% (3) 40% Loans to Deposits (%) 109% 108% <110% Net Eurosystem / Assets (%) 9% 7% <10% Return on Assets (bps) (4) n.m. 90 bps 140 bps (1) Source: solo financials including adjustments for volumes booked in branches abroad, BoG for market (2) Annualized net interest income over average assets for continued operations, excl. EFSF bonds and seasonal agri-funding facility for year-end periods (3) Excluding one-off items (4) Excluding EFSF bonds and seasonal agri-funding facility n.m.: non-meaningful 7 Highlights

8 Selected Transactions Athens Water Supply (EYDAP) Stake Disposal April 2014: the Bank disposed its c.10% stake in Athens Water Supply (EYDAP) 56 mn gain booked in Q MIG Corporate Restructuring Transaction ( debt to-debt & debt-to-equity ) May 2014: the Bank acquired for a consideration of 165 mn MIG assets of aggregate value of c. 325 mn Assets comprised a highly collateralized loan of 75 mn and 250 mn convertible bonds 144 mn gain posted in Q following fair value recognition ATE Insurance Divestment August 2014: the Bank agreed to sell 100% of ATE Insurance to ERGO Group (Munich Re Group) Consideration of 90 mn in cash, subject to customary net asset value adjustments upon closing Transaction is subject to regulatory approvals and envisaged to be completed by the end of mn estimated gain expected to be booked by Q Aegean Airlines Stake Disposal July 2014: the Bank disposed its c.5% stake in Aegean Airlines 20 mn gain to be recognised in Q c. 250 mn capital gain secured to date 8 Highlights

9 ECB Comprehensive Assessment Metrics BoG ECB-EBA Reference date Jun.13 Dec.13 Horizon 3.5 yrs 3 yrs Balance Sheet Dynamic Static & Dynamic Binding scenario Base Base & Adverse CET1 hurdle rates 8.0% base 5.5% adverse 8.0% base 5.5% adverse Piraeus Capital Buffers Against capital: base scenario 3.4 bn Capital buffers : adverse scenario 4.9 bn Capital Increase in Apr.2014: bn Other mitigating factors: actual 2014 vs. stressed taking into account new law (DTA converting to DTC) Other capital actions: dynamic vs. static balance sheet Note: static balance approach uses 2013 financials as benchmark, applying respective caps and floors; dynamic approach allows for balance sheet expansion based on approved restructuring plan under EBA adjustments Restructuring Plan 3yr PPI: Note: capital increase on net basis, i.e. post repayment of state prefs of 750 mn ~4.5% over assets Comprehensive Assessment Timeline Risk Assessment Nov AQR Stress Test Stress Test Quality Assurance Join Up AQR-Stress Test Sharing Partial Preliminary Info with Banks Announcement Oct Highlights Macro Assumptions (cumulative rates) Baseline Adverse 2013 BoG Real GDP 7.5% -2.1% Residential property -8.1% -22.9% Commercial property -8.7% -23.3% 2014 ECB-EBA Real GDP 7.4% -1.0% Residential property -12.2% -26.3% Commercial property -4.0% -13.3%

10 Strongly Capitalized Under Basel III Framework CET-1 Basel III Phased In Ratio ( bn) Jun 2014 Phased-In CET Regulatory Capital Phased In 9.0 RWAs 59.7 CET-1 Ratio 15.0% Total Capital Adequacy Ratio 15.1% CET-1 Basel III Fully Loaded Ratio ( bn) Jun 2014 Fully Loaded Pro-forma for new law CET Regulatory Capital Fully Loaded DTA Elimination RWAs CET-1 Ratio 10.8% 14.4% Total Capital Adequacy Ratio 11.0% 14.6% Phased-in CET-1 ratio resilient qoq at 15.0% Q RWAs relief of 1.9 bn due to deleveraging/optimization actions Full elimination of DTAs >10% of CET-1 has been the key adjustment to phased-in CET-1 Post new legislation approved on 25 September 2014, DTA elimination ceases (conversion to deferred tax credit) 10 Highlights

11 Among Best Capitalized Banks in Europe Euro STOXX Banks Basel III Phased-in CET-1 Ratios June 2014 Euro STOXX Banks Basel III Fully Loaded CET-1 Ratios June 2014 Piraeus 12.8% average 16% 16% 15% 15% 14% 14% 13% 13% 13% 13% 13% 12% 12% 12% 12% 12% 11% 11% 11% 10% 10.9% average 13% 12% 12% 12% 12% 11% 11% 11% 11% 14.4% Piraeus 11% 11% 10% 10% 10% 10% 10% 10% 10% 9% 9% post new legislation for conversion of DTA to DTC Note: Group of banks reporting Basel 3 fully loaded and phased-in CET-1 ratios as at Q within the Euro STOXX banks consists of BCP, Commerzbank, Bankia, BBVA, BoI, BNP, UniCredit, SocGen, Banco Popular, Erste, UBI Banca, Banco Popolare, Deutsche Bank, BMPS, Credit Agricole, CaixaBank, KBC, NBG, Alpha 11 Highlights

12 Q FINANCIAL RESULTS Top Line Recovers Further 2.2 H OpEx Level Closer to Mid-Term Efficiency Target 2.3 Synergies: 72% Already Secured 2.4 Recurring PPI Up 17% in Q2 2.5 Reliance on ECB Funding Close to Pre-Crisis Levels 12 Q Financial Results

13 Top Line Recovers Further Core Revenues Recovery ( mn) Seasonal NFI NFI NII NII up 4% qoq, pushing NIM to 270 bps vs. 255 bps in Q NII bolstered by improving funding rates, but also loan margin expansion NFI 43 bps over assets, flat qoq Q Q Q Q Seasonal refers to NFI related with agri-banking Net Interest Income Composition ( mn) Net Fee Income Composition ( mn) Other Deposits Loans Q Q Q Q Note: all data exclude one off items 13 Q Q Q Q Q Financial Results Commercial Banking Investment Banking Agri Banking Asset Management 91 wealth mngt AUM 1.6 bn M/F 0.9 bn

14 H OpEx Level Closer to Mid-Term Efficiency Target Total Operating Expenses ( mn) % 6% H1.13 H1.14 Q1.14 Q2.14 Significant reduction in staff costs and admin. expenses yoy: - staff -16% yoy - admin -4% yoy Seasonally higher Q2 admin. expenses (by c. 20 mn) attributable to: - higher promotion costs - increased collections activities - regulatory compliance costs (AQR, stress test) ( mn) H1.13 H1.14 Q1.14 Q2.14 OpEx Staff Costs Admin Costs rents promotion rd parties taxes other Depreciation OpEx (recurring) one-offs ( mn) Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Realization of Actions Drive C:I Drastic Decline One-off Costs VES % Integration % 61% DGS( 1) 44 One-off Costs % 54% (1) contribution to Greek Deposit Guarantee Scheme to cover the buildup of the required funds for the resolution mechanism C:I Q C:I Q C:I Q C:I Q C:I Q Q Financial Results

15 Synergies: 72% Already Secured Cost Synergies Fully phased: 345 mn Total Synergies Fully phased: 550 mn (incl. 45 mn revenue synergies) Actions already implemented 224 mn 121 mn Actions already implemented 398 mn 152 mn Actions taken crystallize 65% of total cost synergies Actions taken crystallize 72% of total synergies Remaining core actions 2 nd VES & revenue synergies Funding Synergies Fully phased: 160 mn Integration Costs Actions already implemented 160 mn 333 mn booked 420 mn budgeted in total Actions taken crystallize 100% of total funding synergies mn (79%) of integration costs incurred to date 15 Q Financial Results

16 Recurring PPI Up 17% in Q2 Recurring PPI Evolution ( mn) +82% Annualized PPI at 1.2 bn based on Q2 run-rate (+36% vs. FY 2013 recurring PPI) Positive jaws between banking income and expenses continue to expand ( 238 mn in Q2 2014) Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Recurring PPI Recurring PPI excl. trading income Positive Operating Jaws Q2 PPI Normalization ( mn) Banking Income Expenses Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Reported PPI One-off costs Gain from corporate restructuring deal Recurring PPI 16 Q Financial Results

17 Reliance on ECB Funding Close to Pre- Crisis Levels Eurosystem Refinancing ( bn) 45% 32 12% 9% 1 7% over assets Dec-12 Dec-13 Mar-14 Jun-14 EFSF Bond Repos with ECB ECB ELA Collateral Placed with ECB Low Eurosystem utilization: - nominal 11.2%, net of EFSF bonds refinancing 6.7% of total assets as of Jun.2014 Interbank repos with EFSF bonds in excess of 10 bn L.3723/2008 Pillar II bonds nominal value reduced by 4.6 bn in Q2 to an industry best of 5.3 bn Collateral value of remaining government guaranteed bonds at 4.0 bn 2014 TLTRO take-up at 2.7 bn Cash value mtm, bn EFSF bonds L.3723/2008 Pillar II L.3723/2008 Pillar III Other securities Non marketable assets Collateral Value Pledged Jun bn 4.0 bn 1.5 bn 0.6 bn 0.5 bn 10.6 bn 17 Q Financial Results

18 ASSET QUALITY - RECOVERY BANKING UNIT (RBU) NPL Formation Further Contained 3.2 Sound NPL Coverage in All Segments 3.3 RBU at a Glance 3.4 RBU Early Results Bode Well for Future Performance 3.5 Cash & Collateral Coverage Analysis 3.6 Modified and Restructured Loans 18 Asset Quality - Recovery Banking Unit (RBU)

19 NPL Formation Further Contained Piraeus Group NPL Formation NPL Ratio - 90dpd for All Segments (%) 3.21% c.30 bps 2.43% adj. for deleveraging in Q2 1.78% 1.68% 1.33% 1.05% bn 0.68% bn bn bn bn bn ATE Geniki Cypriot Millennium bn Q Q % 41.4% 40.9% 37.9% 25.7% 24.6% 50.5% 50.3% Impact of deleveraging NPL ratio 38.5% 1.8% 1.5% 1.1% 0.8% 0.4% 34.4% 32.8% 36.8% 36.5% 35.5% Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Note: pre write-off quarterly NPL formation (amount and bps over end-quarter loan balance) Group NPL Composition - Q Total Business Mortgages Consumer Piraeus Group Asset Quality KPIs Q2.13 Q3.13 Q4.13 Q1.14 Q2.14 NPLs Q NPLs Q % Business Mortgages Consumer TOTAL 19.8 bn 4.6 bn 3.8 bn 28.1bn Greece International TOTAL 25.7 bn 2.4 bn 28.1 bn 3.21% 2.81% 2.90% 2.43% 1.78% 2.62% 1.68% 3.63% 1.33% 2.60% 1.05% 2.59% Cost of risk 0.68% NPL formation Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 19 Asset Quality - Recovery Banking Unit (RBU)

20 Coverage of NPL by LLRs per Product (%) Sound NPL Coverage in All Segments Group NPL & Coverage per Region - Jun.2014 (%) Q Q % 54.7% 53.8% 50.7% 17.0% 72.4% 73.4% 17.2% Total Business Mortgages Consumer coverage ratio 128% total NPL coverage incl. collateral 70% of NPLs from business loans with strong collateral best residential mortgage LTV in the market (BlackRock II) SBL lifetime CLP 18% vs.31% market avg (BlackRock II) Greece International 51.0% 38.9% 34.8% 50.7% 19.8% NPLs NPLs Coverage LLR/Loans 17.6% Q2 write-offs 268 mn predominantly in Romania Group LLRs Composition - Jun.2014 ( bn) Group LLRs over Gross Loans (%) Jun % LLRs Business Jun bn LLRs Greece Jun bn Mar % 22.6% 36.9% Mortgages Consumer TOTAL 0.8 bn 2.8 bn 14.3 bn International TOTAL 1.2 bn 14.3 bn 22.0% 19.2% 4.4% 4.2% Total Business Mortgages Consumer 20 Asset Quality - Recovery Banking Unit (RBU)

21 RBU at a Glance Troubled Assets Actively Managed for Value Holistic Approach for Sustainable Solutions 900 1, k 11.1bn 40k 15.8bn Dedicated restructuring professionals Credit staff involved at various steps of NPL mngt process Retail Clients in RBU Retail Exposure Under RBU mngt Commercial & SB Clients in RBU Business Exposure Under RBU mngt Dedicated and consistent treatment of borrowers in difficulties Value creation for Piraeus through a streamlined NPL mngt process Alignment with international best practice and EBA guidelines Internal recruitment of the best and most experienced RMs Developed suite of analytical tools to support decision-making Designed and pilot-tested best-in-class processes to: identify customer s degree of cooperation; assess their level of ongoing viability and debt capacity; select best solution treatment to cure each customer s needs Detailed customer segmentation with: industrialized & off the shelf approach for retail / SB clients; specific made to measure treatments for complex corporates Implementation of campaigns for the Retail and SB portfolio Thematic industry specific campaigns for the SME-Corporate portfolio 21 Asset Quality - Recovery Banking Unit (RBU)

22 RBU Early Results Bode Well for Future Performance Asset Quality KPIs ( bn) Dec.2013 Jun.2014 Performing - Satisfactory risk Performing - Special mention Loans with no arrears dpd Special mention exposures at only 4% of total book, as RBU officers have cleared up majority of inherited cases from acquisitions 1-89dpd loans have been reduced by more than 2bn ytd +90dpd Loans with arrears Performing dpd dpd Impaired Total loans o/w rescheduled non +90dpd o/w restructured non +90dpd Total collateral Collateral c.85% of +90dpd included in the impaired category 8% of total loan book has been modified due to crisis yet services obligations without any problem Enhanced collateralization for customers set among RBU main KPIs Note: data for Dec.2013 exclude seasonal agri-loan ( 1.9 bn) 22 Asset Quality - Recovery Banking Unit (RBU)

23 Cash & Collateral Coverage Analysis KPIs per Bucket of Arrears ( bn) Q2-14 Impairment Coverage Tangible Collateral Coverage Guarantees Coverage Total Coverage Performing - Satisfactory risk % 56% 26% 83% Performing - Special mention 2.9 1% 91% 25% 118% Loans with no arrears % 60% 26% 86% 1-29 dpd 5.8 3% 71% 21% 94% dpd 4.2 5% 73% 20% 98% +90dpd 4.5 7% 77% 12% 96% Loans with arrears % 73% 18% 96% Performing % 38% 29% 105% 1-89 dpd % 46% 23% 108% +90dpd % 44% 40% 134% Impaired % 44% 38% 129% Total loans % 56% 29% 105% 23 Asset Quality - Recovery Banking Unit (RBU)

24 Modified and Restructured Loans Total Modified / Restructured Loans ( bn) Restructured Loans by Aging Status (%) Dec.2013 Jun.2014 Modified Restructured Total restructured loans as % of total loans 8% 63% 37% Jun.2014 Performing (0 dpd) 1-89dpd Restructured loans with mild delinquency (< 90 dpd) as % of total loans 3% Restructured Loans by Credit Quality ( bn) Restructured Loans Collateralization Total Restructured Loans Neither past due nor impaired Past due not impaired Impaired TOTAL Jun bn 1.7 bn 2.1 bn 6.2 bn Total Restructured Loans LLR Coverage Collateral Coverage TOTAL Neither past due nor impaired 0% 66% 66% Past due not impaired 2% 70% 72% Impaired 35% 59% 94% TOTAL 13% 64% 77% 24 Asset Quality - Recovery Banking Unit (RBU)

25 DOMESTIC OPERATIONS P&L Highlights 4.7 Deposit Portfolio 4.2 Core Banking Income Drives PPI Expansion 4.8 Footprint Target Upgraded 4.3 Customer Portfolio Yields 4.4 Operating Costs 4.5 Loan Portfolio 4.6 Asset Quality Metrics 25 Domestic Operations

26 Domestic ( mn) Q2.14 Q1.14 qoq H1.14 Net Interest Income % 820 Net Fee Income % 134 Banking Income % 955 Trading & Other Income 50 7 >100 % 57 Total Net Revenues (recurring) % 1,012 - including one-off Items % 1,155 P&L Highlights NFI is trending up due to repricing launched mid Q2.14 Recurring revenues up 14% qoq Employee Costs (150) (157) -4% (307) Administrative Expenses (112) (92) 22% (204) Depreciation & Other (25) (18) 39% (43) Total OpEx (recurring) (287) (267) 8% (554) - including one-off Items (315) (299) 5% (614) PPI (recurring) % including one-off items >100 % 541 Income from Associates 8 (4) - 4 Impairment on Loans (414) (417) -1% (831) Impairment on Other Assets (35) (21) 72% (56) Pre Tax Result (75) (267) 72% (341) Tax Net Result Attrib. to SHs 202 (197) - 5 Admin costs affected by collection expenses and RBU related costs plus taxes in Q2 Provisioning marginally down qoq Greece profitable in Q2.14 (P&L including one-off items) Note: all data exclude one off items 26 Domestic Operations

27 Core Banking Income Drives PPI Expansion Domestic Operating Jaws Domestic NII Breakdown 489 mn Q2.14 Q1.14 qoq Banking Income Expenses Loans: Mortgages Consumer Corporate Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Total loans Domestic Net Interest Margin Deposits: Savings & Current accounts % 2.07% 2.17% 2.26% 2.42% 2.57% Term deposits Total Deposits Other NII Total NII Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q2.14 Note: data like-for-like for acquisitions in 2013 and excluding one-off items 27 Domestic Operations

28 Customer Portfolio Yields Greek Customer Rates (quarterly average) Q2.13 Q3.13 Q4 13 Q1.14 Q2.14 Deposits 2.79% 2.47% 2.14% 1.97% 1.84% Sight 0.85% 0.96% 0.92% 0.87% 0.80% Savings 0.50% 0.51% 0.40% 0.37% 0.36% Time 4.17% 3.63% 3.18% 2.93% 2.71% Loan Rates in Greece Total Stock Q2.14 Q1.14 Front Book Total Stock Front Book Mortgages 2.8% 4.5% 2.8% 4.4% Consumer 9.7% 9.5% 9.7% 10.8% Business 5.2% 5.8% 5.1% 5.8% Total 4.9% 5.9% 4.8% 5.8% Q2 new flows bn business + 40 mn retail Loans 5.06% 4.94% 4.72% 4.79% 4.86% Mortgages 2.99% 2.99% 2.85% 2.84% 2.81% Consumer 9.82% 9.97% 9.58% 9.74% 9.70% Business 5.45% 5.24% 5.01% 5.11% 5.24% Rates refer to total Greek banking operations (Piraeus Bank and Geniki Bank) pro-forma for acquisitions in Q1 and Q Business Loans (total stock) Q2.14 Q1.14 Corporate 4.6% 4.6% Shipping 4.2% 4.2% SME/SBL 5.8% 5.6% Total 5.2% 5.1% Domestic Operations

29 Operating Costs Operating Costs ( mn) Cost to Income (%) avg 2013 q: 322 mn % 72% 62% 59% 56% 53% Q Q Q Q Q Q Q Q Q Q Q Q Staff Costs ( mn) avg 2013 q: 183 mn Q Q Q Q Q Q Note: data like-for-like for acquisitions in 2013 and excluding one-off items 29 General Administrative Expenses ( mn) mn Domestic Operations Q Q Q Rents Third Parties Product Servicing Promotion Taxes Other Total Q2 impact main increase related with collection costs and high promotion expenses Note: 3rd parties costs relate to consulting, IT advisory-support, card processing services, facility mngt services

30 Loan Portfolio Gross Loans Evolution ( mn) Business Loans H1 Flows ( mn) Jun.13 Note: Dec.13 excludes seasonal agri-loan Dec.13 Mar.14 Jun.14 Δ yoy Δ ytd Total 68,472 67,124 66,645 66,199-3% -1% Business 43,759 42,977 42,760 42,536-3% -1% Mortgages 17,820 17,392 17,240 17,089-4% -2% Consumer 6,893 6,756 6,645 6,574-5% -3% Portfolio Mix per Industry & Segment (%) +1,190 +1, Q1.14 Q2.14 Loan Market Shares Total Business 0 Corporates SMEs Other Service Health Technical IT Agriculture Energy Fin. Service Tourism Real Estate Transport Construction Trade Manufacturing Retail 6.4% 0.9% 1.4% 1.5% 1.7% 2.4% 4.8% 4.9% 4.9% 6.6% 9.1% 9.9% 10.9% SME 32% Shipping 5% 34.7% Large 23% SBL 4% Consumer 10% Mortgages 26% 34.5% 29.7% 24.3% 22.1% Business Mortgages Consumer Total 30 Domestic Operations

31 Asset Quality Metrics NPL & Cash Coverage (%) NPL Formation per Segment ( mn) Q Q % 38.2% 51.0% 50.4% 19.8% 19.2% Q Q NPLs coverage by LLRs and collateral 128% NPLS Cash Coverage LLR/Loans Total Business Mortgages Consumer Note: pre write-off quarterly NPL formation Total Coverage - Q (%) Cost of Risk (%) Q2 cost of risk 239 bps Collateral Coverage Cash Coverage 158% 128% 125% 114% 87% 77% 69% 98% 51% 56% 71% 16% Total Business Mortgages Consumer 4.24% 2.95% 2.49% 2.50% FY 12 FY 13 Q1 14 Q2 14 Average LTV for Greek mortgage book 77% 31 Domestic Operations

32 Deposit Portfolio Deposit Evolution ( mn) Deposit Market Shares (%) Jun.13 Dec.13 Mar.14 Jun.14 Δ yoy Δ ytd 27.7% 28.7% 28.5% Total 50,243 49,650 49,801 49,494-1% 0% Savings 11,838 12,550 11,959 11,869 0% -5% Sight 7,578 8,421 8,519 8,017 +6% -5% Time 30,828 28,679 29,323 29,607-4% +3% Sight-Savings Time Total Deposit Mix per Customer Type (%) New Time Deposits Rates (%) Retail 78% Business 22% Time 64% Time 45% Retail (%) Core 36% Business (%) 4.60% 4.40% 4.29% 4.23% 3.76% 3.64% 3.06% 2.82% Greek Market Piraeus 2.79% 2.75% 2.35% 2.71% 2.66% 2.27% 2.04% Core 55% Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Aug Domestic Operations

33 Footprint Target Upgraded New Target at c.800 Units by Dec.2014 (previously 860) Domestic Footprint - Jun.2014 (#) Key Business Targets Transactional Excellence- Processes People KPIs Customer Business Focus Epirus #29 Thessaly #48 Macedonia #135 Thessalonica #94 Deposit market share retention Time deposit further repricing Active NPL management for retail customers (individuals & SB) Cost synergies materialization (95% crystallized) Queuing Time Decreased 15% vs. Dec.2013 Significant increase of Automated Transaction Points ytd [+c.100 to 470] Rechanneling cashier transactions to ATPs by 3% vs. Dec.2013 Culture harmonization Completion of Best Fit allocation Ongoing training 9 employees per branch on average, best in class in Greece ~5 mn customers Customer satisfaction rates stable Zero attrition Affluent and SB specialized segment management Strong relationships with agricultural sector SB support European Structural Funds Mass Retail further x-sell improvement Ionian #16 W.Greece #54 Central Greece #50 Peloponnese #58 Attica #299 Crete # % Aegean #50 achievement of target for Greek branch closures (870 units today from 1,354, new target for c.800 by year-end 2014) 33 Domestic Operations

34 INTERNATIONAL OPERATIONS P&L Highlights 5.2 International P&L 5.3 Loan & Deposit Portfolios 5.4 Presence per Country 5.5 Romania and Bulgaria at a Glance 34 International Operations

35 International ( mn) Q2.14 Q1.14 qoq H1.14 Net Interest Income % 159 Net Fee Income % 26 Banking Income % 185 Trading & Other Income % 16 Total Net Revenues (recurring) % including one-off Items % 179 Employee Costs (25) (26) -6% (51) Administrative Expenses (24) (23) 1% (47) Depreciation & Other (7) (7) 3% (14) Total OpEx (recurring) (55) (57) -2% (112) P&L Highlights Resilient banking income despite deleveraging C:Ι down 15 ppts q-o-q to 56% PPI (recurring) % 89 - including one-off items % 67 Income from Associates Impairment on Loans (61) (64) -4% (125) Impairment on Other Assets (22) (14) 56% (37) Cost of risk contained at 3.5% Pre Tax Result (40) (55) 28% (95) Tax % 7 Net Result Attrib. to SHs (37) (50) 25% (87) 35 International Operations

36 International P&L Core Banking Income ( mn) Pre-Provision Income ( mn) NFI NII Q Q Q Q Q Q Q Q Q Q Q Q OpEX ( mn) Loan Loss Charges ( mn, % on avg loans) % 7.2% 4.1% 2.4% 3.7% 3.5% Admin Depreciation Staff Costs Q Q Q Q Q Q Q Q Q Q Q Q International Operations

37 Loan & Deposit Portfolios Gross Loans Evolution ( mn) Jun.13 Dec.13 Mar.14 Jun.14 yoy ytd Total 7,207 7,050 6,965 6,860-5% -3% Business 5,358 5,252 5,176 5,202-3% -1% Mortgages % -2% Deleveraging continues, mainly in retail business LTD slashed by 19 ppts yoy down to 115% Deposits grew markedly +10% yoy Consumer 1,141 1,106 1, % -11% Deposit Evolution ( mn) Jun.13 Dec.13 Mar.14 Jun.14 yoy ytd Total 4,490 4,629 4,809 4,929 10% 6% Savings % 6% Sight ,076 1,106 20% 21% Time 3,294 3,393 3,409 3,483 6% 3% Deposits ( mn) Dec.13 Jun.14 ytd Cyprus 910 1,065 17% Bulgaria % Romania 1,027 1,080 5% 37 International Operations

38 Presence per Country Market Shares (June 2014) Loans Deposits Albania 8.3% 8.3% Bulgaria 4.4% 3.0% Romania Branches (#) 135 Employees (#) 1,628 Assets ( mn) 1,822 Bulgaria Branches (#) 83 Employees (#) 911 Assets ( mn) 1,786 Cyprus Branches (#) 14 Employees (#) 334 Assets ( mn) 1,198 Cyprus 1.4% 2.3% Egypt 0.8% 0.5% Romania 3.2% 1.8% Serbia 3.0% 2.0% Ukraine 0.2% 0.2% Ukraine Branches (#) 28 Employees (#) 562 Assets ( mn) 181 Serbia Branches (#) 34 Employees (#) 563 Assets ( mn) 514 Egypt Branches (#) 39 Employees (#) 1,291 Assets ( mn) 899 Piraeus Bank volumes as per IFRS local books and Central Banks for market volumes 7 subsidiaries 2 branches (London, Frankfurt) Albania Branches (#) 53 Employees (#) 471 Assets ( mn) 743 London Branch (#) 1 Employees (#) 29 Assets ( mn) 1,546 Frankfurt Branch (#) 1 Employees (#) 15 Assets ( mn) International Operations

39 Romania & Bulgaria at a Glance Romania Jun.14 Assets 1.8 bn Gross customer loans 1.5 bn Loan loss reserves 0.4 bn Deposits 1.1 bn Net parent funding 0.5 bn Book value (bank accounts) 0.2 bn Capital adequacy 13% Q2.14 Net Revenues 80 mn OpEx 35 mn PPI 45 mn Jun.14 NPLs (%) 29% Coverage (%) 86% Bulgaria Jun.14 Assets 1.8 bn Gross customer loans 1.3 bn Loan loss reserves 0.2 bn Deposits 1.0 bn Net parent funding 0.3 bn Book value (bank accounts) 0.3 bn Capital adequacy 29% Q2.14 Net Revenues 28 mn OpEx 17 mn PPI 12 mn Jun.14 NPLs (%) 29% Coverage (%) 40% Loan balances still on a deleveraging trend: Romania -6% yoy, Bulgaria -3% yoy Deposits are up by 14% in Romania and 18% in Bulgaria yoy Thanks to robust deposit growth, LTD ratio has improved to 107% in Romania (-11 ppts yoy) and to 119% in Bulgaria (-30 ppts yoy) In Romania, NPLs ratio declined to 29% in Jun.14 vs. 35% in Mar.14 on the back of portfolio clean-up ( 180 mn write-offs in Q2.14). Coverage at 86% NPLs ratio in Bulgaria at 29%, with cash and tangible collateral well above 100%, as the business portfolio accounts for 83% of the total 39 International Operations

40 06 MACRO & BANKING UPDATE 6.1 Greek Macro Update 6.2 Greek Banking Update 6.3 Greek Banking Market Key Figures 6.4 Stabilization of Economic Activity 6.5 Financial Conditions and Economic Climate 6.6 Investment - Corporate Sector 6.7 Current Account Balance & Tourism 6.8 Budget Execution 6.9 Labour Market 6.10 SEE Macro Outlook 40 Macro & Banking Update

41 Greek Macro Update Macro Environment From twin deficits to twin surpluses (C/A of 0.8% of GDP; primary fiscal balance of 0.8% in 2013; 2014 projection 2.0% and 1.6% respectively) Economy has regained lost competitiveness as measured by the nominal unit labor cost Greece has returned to the bond markets after a 4-year hiatus Greek economic sentiment improved by 11.1 ppts to in Jun.2014 vs at the beginning of 2014, highest since Aug.2008 GDP and employment negative growth rate seems to decelerate Greek GDP Change yoy (%) Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 41 Macro & Banking Update

42 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun Greek Banking Update Banking Environment Time Deposit Rates (%) Customer deposits have increased by 12% from trough (Jun.2012-Jun.2014) Loans to deposits ratio improved to 104% in Jun.2014 compared to 129% in Jun.2012 Interest rates on new time deposits decreased by 263 bps since Jun.2012, down to 239 bps in Jun.2014 (2) Eurosystem financing down to 45 bn in Jun.2014, -67% vs. Jun.2012 peak ( 136 bn) Currency in circulation down to 33 bn in Jun.2014, - 27% vs. 45 bn peak in Jun.2012 ( 20 bn level pre crisis) LLRs over gross loans ratio increased to 16.2% in Jun.2014 (2.8% in Dec.2008) 8.3 bn capital raised from 4 Banks in 2014, in parallel with 2.3 bn bond issues 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% New - GR Outstanding - GR Outstanding - Euroarea 2.71% 2.39% 1.65% (1) Sources for this slide: EL.STAT., BoG (2) Deposits from households with agreed maturity up to 1 year 42 Macro & Banking Update

43 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-07 May-08 Oct-08 Mar-09 Aug-09 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 Feb-12 Jul-12 Dec-12 May-13 Oct-13 Mar-14 Aug-14 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Market Volumes Stabilization ( mn) Greek Banking Market Key Figures Loan to Deposit Ratio at Healthy Level (%) 290, , % 130% 250, % 230, bn 110% 104% 210, , ,000 Loans Deposits bn 100% 90% 80% 70% 150,000 60% High Level of LLRs and NPLs (% over Loans) 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% LLRs/Loans NPLs/Loans Unemployment 35.0% 27.3% 16.2% Deposit market has remained almost stable ytd in 8m 2014 Loan deleveraging continues, yet at decelerated pace; -3.5% yoy in Aug.2014 vs yoy in 2013 NPLs ratio remains elevated (35% Jun.2014, est) post 6 years of recession; yet, LLRs over gross loans have climbed to 16.2% in Jun % 43 Macro & Banking Update

44 Q1/02 Q3/02 Q1/03 Q3/03 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 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 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 GDP (y-o-y % change, nsa data) vs. ESI Stabilization of Economic Activity In May 2014 ESI started moving above its long-term average, exceeding in June the relevant Euro area index On a yoy basis, GDP contracted by just 0.3% in Q According to our seasonally adjusted data, GDP expanded by 0.2% on a quarterly basis This trend bodes well for the stabilization of the economy and its recovery towards the end of the year More clarity on the cyclical developments of the economic activity is provided by what is known as the 2nd derivative of GDP. The 2nd derivative indicates a continuously improving trend* * an intuitive way to identify the real turning point is when the rate of change of the growth rate switches over from a negative to a positive value (in other words when the second derivative changes sign) GDP (% change) Real GDP (sa, % change) nd derivative<0 2nd derivative>0 GDP_sa_2005=100 (QoQ% change) GDP_sa_2005=100 (YoY% change) GDP_nsa_2005=100 (YoY % change) Note: Seasonally adjusted data according to PrB estimates Sources: European Commission DG ECFIN, ELSTAT, Piraeus Bank Economic Research 44 2nd derivative Real GDP growth rate (sa, ΥοΥ % change) Note: Seasonally adjusted data according to PrB estimates Macro & Banking Update

45 Jan-03 May-03 Sep-03 Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 level Economic Tracer downswing contraction Jan.' mom change Aug.' expansion upswing Financial Conditions & Economic Climate According to our mapping of the business cycle, Greece has moved back into the expansionary quadrant Our Financial Distress Index (FDSI), which reflects the conditions of liquidity and solvency not only of the banking sector, but of the Greek economy as a whole, has shown a remarkable retrenchment, mirroring the substantial decline in the financial stress of the Greek economy The cost of funding for large non-financial Greek corporates has also improved significantly in recent months Greece has returned to the bond markets after a 4-year period. A second Government bond was issued on 10 th of July. This 3-year bond has an annual coupon of 3.375% and a principal amount of 1.5bn Greek Financial Distress Index Greek Corporate Bond Yield June ' Sources: European Commission DG ECFIN, ELSTAT, Bank of Greece, Teiresias, Bloomberg, Minfin Piraeus Bank Economic Research 45 Macro & Banking Market

46 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q1 Q1/01 Q3/01 Q1/02 Q3/02 Q1/03 Q3/03 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 Capacity Utilization in Manufacturing (%, sa) Investment - Corporate Sector Business capex has moved into positive territory following strong figures for capacity utilization and manufacturing confidence The level of capacity utilization follows an upward trend since mid Current level of capacity utilization (%) Average ( ) Industrial Confidence Indicator (sa) Gross Fixed Capital Formation (current prices, mn ) , , , , , , , , , , Industrial Confidence indicator (sa, level) Average Level ( ) Metal products and machinery Constructions (excl. Residential) Total (excl. Residential, YoY%change), RHS Transport equipment Agricultural & other products *Sources: European Commission DG ECFIN, ELSTAT, Piraeus Bank Economic Research 46 Macro & Banking Market

47 Jan. Jan.-Feb. Jan.-Mar. Jan.-Apr. Jan.-May Jan.-Jun. Jan.-Jul. Jan.-Aug. Jan.-Sep. Jan.-Oct. Jan.-Nov. Jan.-Dec. Jan. Jan.-Feb. Jan.-Mar. Jan.-Apr. Jan.-May Jan.-Jun. Jan.-Jul. Jan.-Aug. Jan.-Sep. Jan.-Oct. Jan.-Nov. Jan.-Dec. Jan. Jan.-Feb. Jan.-Mar. Jan.-Apr. Jan.-May Jan.-Jun. Jan.-Jul. Jan.-Aug. Jan.-Sep. Jan.-Oct. Jan.-Nov. Jan.-Dec. Current Account Balance (cumulative, mn ) Current Account Balance & Tourism The improvement in the current account balance has been persistent and broad based. Current account balance has shown a significant improvement, posting a surplus of 1.4 bn (0.8% of GDP) in 2013 The balance of goods & services (excl. oil & ships) has been in surplus since However, a substantial part of the improvement is due to import decline In the January-July 2014 period, the current account surplus came to 567 mn, (Jan-July 13 : 399 mn), mainly due to the services balance improvement The tourism industry is expected to be one of the main sectors, which will lay the foundations for the stabilization of the Greek economy Tourism revenues are up mn in July 2014 pushing the Current Account Balance into positive territory During 8m 2014, travel spending by non-residents in Greece was increased by 14%, reflecting a 21% rise in non-residents arrivals Trade Balance of Goods & Services (mn ) Travel Receipts (cumulative, mn) Sources: Bank of Greece, Piraeus Bank Economic Research 47 Macro & Banking Market

48 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan. Jan.-Feb. Jan.-Mar. Jan.-Apr. Jan.-May Jan.-Jun. Jan.-Jul. Jan.-Aug. Jan.-Sep. Jan.-Oct. Jan.-Nov. Jan.-Dec. Jan Jan-Feb Jan-Mar Jan-Apr Jan-May Jan-June Jan-July Jan-Aug Budget Execution Ordinary Budget Execution (cumulative, mn) Net Revenue (outcome) Expenditure (outcome) Net Revenue (Target) Expenditure (target) The execution of the State Budget is on track (Jan-Aug.2014: bn, target: - 4.1bn) and the primary budget (excl. interest payments) has been in surplus since the beginning of the year The οordinary budget deficit was below the target mainly due to the underexecution of the expenditure bill After reaching historic record lows in 2012 and 2013, public Investment expenditure has began to recover, going back to its 2011 level. Substantial transfers from the EU will allow the Greek government to accelerate the implementation of the PIP and support growth Public sector spending on infrastructure projects via the PIP has increased to over 600mn per month (on a rolling basis) reaching pre-crisis level Public Investment Programme, Disbursements (flows, mn, 12m moving average) (cumulative, mn) Sources: MinFin, Piraeus Bank Economic Research Disbursements (12m moving average,flows) 48 Macro & Banking Market

49 Q1/02 Q3/02 Q1/03 Q3/03 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 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Q1/03 Q3/03 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 Employment (yoy % change, nsa data) ndderivative < 0 2ndderivative > Labour Market The 2nd derivative of payrolls has switched over to a positive sign since the 4th quarter of 2012 Job creation schemes have had a substantial impact on the labour market, leading to a stabilization in payroll figures and pushing unemployment down to 27.0% in June 2014, sa data) from 27.4% at end-2013 EU funding is up by more than 1bn running up to June Part of the funding has been allocated to finance investments but a substantial part has been directed towards supporting the long term unemployed and low income households In Q the unemployment rate stood at 26.6% from 27.3% in Q (non-sa data). Employment was increased by a slight 0.1% yoy, i.e by 4.1 thousand people 2nd derivative Employment (YoY% change) Employment (yoy % change & level) Hiring Intentions (normalized data, sa, 3m moving average) 6 4, , ,500 4,300 4,100 3,900 3,700 3, , Employed, in thousands (RHS) YoY % change (LHS) average level ( ), RHS Sources: DG ECFIN, EL.STAT., Piraeus Bank Economic Research 49 Macro & Banking Market

50 Albania Bulgaria Cyprus Egypt Romania Serbia Ukraine Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun SEE Macro Outlook Economic Growth All countries in the region with the exception of Egypt, Ukraine, Serbiafollowing the May floods- and Cyprus are expected to register solid growth rates in Nevertheless, the transition to a new growth model based on investment and exports is proving rather challenging, limiting growth to levels substantially below their potential. In 2013, the local Central Banks started a monetary policy easing cycle in order to strengthen local economic activity as inflationary pressures subside, but they are expected to halt the easing in Fiscal measures have proved effective for most countries. However, the IMF has increased, and is expected to further increase, its involvement in the region Countries with Piraeus Bank Presence, excl. Greece European Union External imbalances persist, but have significantly improved as activity and exports gain momentum. Unemployment Rate Table of Economic Forecasts % Real GDP (% y-o-y) Inflation (%) Fiscal Balance (% GDP) Current Account Balance (% GDP) f f f f Albania Bulgaria Cyprus Egypt Romania Serbia Ukraine Q Q Sources: Piraeus Bank Research, IMF, National Statistical Sources 50 Macro Update

51 APPENDICES Piraeus Highlights 7.2 P&L and Balance Sheet 7.3 P&L (quarterly) 7.4 Group Results: Domestic / International 7.5 Loan & Deposit Portfolios 7.6 Assets & Liabilities Composition 7.7 Premiere Franchise in Greece by Loans, Deposits & Footprint 7.8 Record-Time Integration of Legacy Banks 7.9 Shareholder Structure - Piraeus Stock Data 51 Appendices

52 Piraeus Highlights Selected Figures (30 June 2014) Total Assets 88.5 bn Total Equity 9.4 bn Regulatory CET-1 Capital (B3) 8.9 bn RWAs (B3) 59.7 bn Gross Customer Loans 73.1 bn Loan Loss Reserves (LLRs) 14.3 bn Net Loans to Customers 58.7 bn Customer Deposits 54.4 bn Customers (#) 6.5 mn Branches (#) 1,277 Employees (#) 22,343 NPL Ratio 39% NPL Coverage Ratio 51% NPL Coverage by Provisions and Collateral 128% 108% 7% 20% 15% Net Loans to Deposits Net Eurosystem Funding to Assets LLRs to Gross Loans Common Equity Tier 1 Ratio (B3) 52 Appendices

53 Profit & Loss ( mn) P&L and Balance Sheet Balance Sheet ( mn) H1.14 H1.13 yoy Net Interest Income % Net Fee Income % Trading & Other Income % Total Net Revenues (recurring) 1,213 1,129 7% - including one-off Items 1,334 1,070 25% Employee Costs (358) (424) -16% Administrative Expenses (251) (262) -4% Depreciation & Other (57) (66) -13% Total Operating Costs (recurring) (666) (752) -11% - including one-off Items (726) (769) -6% Recurring Pre Provision Income % - including one-off items >100% Income from Associates 4 (4) - Impairment on Loans (956) (1,124) -15% Impairment on Other Assets (92) (116) -20% Profit Before Tax (436) (943) 54% Tax Net Profit Attributable to SHs (82) (354) - Discontinued Ops Income (1) 21 - Jun.14 Jun.13 yoy Cash/balance with Central Banks 3,462 3,438 1% Loans & Advances to Banks % Gross Loans 73,059 75,679-3% (Loan Loss Reserves) (14,346) (12,362) 16% Securities 16,492 19,266-14% - o/w EFSF Bonds 14,284 14,303 Intangibles & Goodwill % Fixed Assets 2,345 2,430-4% Deferred Tax Assets 3,260 2,627 24% Other Assets 3,277 2,955 11% Assets of Discontinued Ops % Total Assets 88,451 95,026-7% Due to Banks 21,133 27,430-23% Deposits 54,423 54,733-1% Debt Securities 1, % Other Liabilities 1,987 2,151-8% Liabilities of Discontinued Ops % Total Liabilities 79,085 85,564-8% Total Equity 9,366 9,462-1% Total Liabilities & Equity 88,451 95,026-7% Notes: H1.13 is pro-forma for 2013 acquisitions as of in Greece, excl. negative goodwill of 3.8 bn; discontinued operations refer to ATE Insurance and ATE Insurance Romania 53 Appendices

54 P&L (quarterly) PPI Evolution ( mn) Q2.14 Q1.14 qoq Net Interest Income % Net Fee Income % Banking income % Trading & Other income >100% Total Net Revenues (recurring) % - one-offs: Ukraine loss (Q1.14), corporate restructuring transaction (Q2.14) 144 (22) - Total Net Revenues (incl. one-off items) % Employee Costs (175) (183) -4% Adm. Expenses & Depreciation (168) (140) 19% Total Operating Costs (recurring) (343) (323) 6% - one-off integration costs (28) (32) -12% Total Operating Costs (incl.one-off items) (371) (355) 4% Pre Provision Income (recurring) % Pre Provision Income (incl. one-off items) >100% PAT Reconciliation ( mn) Q2.14 Q1.14 qoq PPI (recurring) % Impairment on Loans (476) (481) -1% Profit Before Tax (recurring) (181) (229) 21% - one-off Items 116 (54) - - other impairments (58) (35) 65% - associate income 8 (4) - Pre Tax Result (114) (322) 64% Tax Net Result Attrib. to SHs (continued ops) 164 (247) - One-off gain in Q2.14 from a corporate restructuring agreement with MIG ( 144 mn); one-off costs of 28 mn respectively c. 200 mn of additional DTA recognition in Q mn reclassification in Q from other operating income to provision expense lines vs. accounting lines, relating to positive fair value adjustment in specific acquired loans (neutral bottom-line impact) 54 Appendices

55 Greece ( mn) H1.14 H1.13 yoy Net Interest Income % Net Fee Income % Banking Income % Trading & Other Income % Total Net Revenues (recurring) 1, % - including one-off Items 1, % Group Results: Domestic / International International ( mn) H1.14 H1.13 yoy Net Interest Income % Net Fee Income % Banking Income % Trading & Other Income % Total Net Revenues (recurring) % - including one-off Items % Employee Costs (307) (374) -18% Administrative Expenses (204) (210) -3% Depreciation & Other (43) (49) -13% Total Operating Costs (recurring) (554) (634) -13% - including one-off Items (614) (651) -6% Pre Provision Income (recurring) % - including one-off items >100% Income from Associates 4 (5) - Impairment on Loans (831) (936) -11% Impairment on Other Assets (56) (100) -44% Pre Tax Result (341) (828) 59% Tax Net Result Attrib. to SHs 5 (254) - Discontinued Ops Result (0) 21 - Employee Costs (51) (50) 1% Administrative Expenses (47) (51) -9% Depreciation & Other (14) (17) -16% Total Operating Costs (recurring) (112) (118) -6% - including one-off Items (112) (118) -6% Pre Provision Income (recurring) % - including one-off items % Income from Associates Impairment on Loans (125) (189) -33% Impairment on Other Assets (37) (16) >100% Pre Tax Result (95) (115) 17% Tax % Net Result Attrib. to SHs (87) (100) 13% Discontinued Ops Result (0) (0) - Notes: H1.13 is pro-forma for 2013 acquisitions as of in Greece, excl.negative goodwill of 3.8 bn; discontinued operations refer to ATE Insurance and ATE Insurance Romania 55 Appendices

56 Loan & Deposit Portfolios Gross Loans Evolution ( mn) Jun.13 Dec.13 Mar.14 Jun.14 yoy ytd Group 75,679 74,175 73,610 73,059-3% -2% Business 49,116 48,229 47,936 47,738-3% -1% Mortgages 18,528 18,084 17,923 17,767-4% -2% Consumer 8,034 7,862 7,752 7,554-6% -4% Greece 68,472 67,124 66,645 66,199-3% -1% Business 43,759 42,977 42,760 42,536-3% -1% Mortgages 17,820 17,392 17,240 17,089-4% -2% Consumer 6,893 6,756 6,645 6,574-5% -3% Intl 7,207 7,050 6,965 6,860-5% -3% Business 5,358 5,252 5,176 5,202-3% -1% Mortgages % -2% Consumer 1,141 1,106 1, % -11% Deposits Evolution ( mn) Jun.13 Dec.13 Mar.14 Jun.14 yoy ytd Group 54,733 54,279 54,609 54,423-1% 0% Savings 12,113 12,870 12,283 12,210 1% -5% Sight 8,498 9,337 9,595 9,123 7% -2% Time 34,123 32,072 32,731 33,090-3% 3% Greece 50,243 49,650 49,801 49,494-1% 0% Savings 11,838 12,550 11,959 11, % -5% Sight 7,578 8,421 8,519 8,017 6% -5% Time 30,828 28,679 29,323 29,607-4% 3% Intl 4,490 4,629 4,809 4,929 10% 6% Savings % 6% Sight ,076 1,106 20% 21% Time 3,294 3,393 3,409 3,483 6% 3% Note: Dec.13 data exclude agri seasonal loan of 1.9 bn 56 Appendices

57 Assets & Liabilities Composition Asset Mix ( bn) 88.5 Total Funding Mix ( bn) Total Loans Breakdown (%) (Piraeus in Greece) 88.5 Consumer Cash Securities EFSF Bonds ECB net ECB EFSF Interbank Repos Securities in Circulation Mortgages Business Sight & Savings Deposits Net Loans Deposits Breakdown (%) (Piraeus in Greece) Time Deposits 33.1 Core 40% PPE Other Equity Other Time 60% 57 Appendices

58 Premiere Franchise in Greece by Loans, Deposits & Footprint Gross Loans - Greece (%) Customer Deposits - Greece (%) Greek Branch Network (#) 29.7% 28.5% in Sept % 26.1% % 20.9% % 18.3% % 1.9% 72 Source: June 2014 solo financial statements for Greek balances, i.e. adjusting for volumes booked in branches abroad; BoG for market data; peers investor material for branches, Alpha including Citi figures pro-forma 58 Appendices

59 Record-Time Integration of Legacy Banks Integration Roadmap Proven track record in post acquisition integration 22bn assets Jun.2013 Good ATEbank 1bn loans Jul.2013 Hellenic Bank in Greece 9bn loans Oct.2013 Bank of Cyprus in Greece 13bn loans Dec bn assets Nov.2013 Millennium Bank Cyprus Greece Popular Bank in Greece 3bn assets Dec.2014 Geniki Bank More than 20 mergers and acquisitions in the last 15 years; 6 fully successful banking migration projects in the last 6 months Completion of the 2013 integration program 6 months ahead of original timeline Geniki to be fully integrated by end 2014 following decision to proceed with merger by absorption Superior infrastructure & project management culture Best in class business and technology infrastructure Brand new, highly scalable Data Center in Athens; stateof-the-art Disaster DC in Thessaloniki Data Center certified by Uptime Institute (Tier 4): only bank in Greece and among 50 top companies worldwide to have this certification Employees training and culture homogenization among key priorities in the integration agenda, with emphasis in the front line Customer centric business approach Customer satisfaction and perception rates further improved as Piraeus has emerged as the #1 bank in the country One Bank- One Platform #1 web bank in Greece 59 Appendices

60 Shareholder Structure - Piraeus Stock Data HFSF 62% (with warrants) Shareholder Structure - July 2014 (%) Total Greek institutions 2% HFSF 5% (no warrants) Private Sector Foreign institutions 28% Individuals 3% Individuals 9% Greek institutions 5% Foreign institutions 86% Shareholder structure of Piraeus Bank presents great diversity; total number of common shareholders 164 thousands The Hellenic Financial Stability Fund holds 67% of outstanding common shares after the 2 nd warrant exercise in July 2014 The remaining 33% is held by the private sector and in particular, 30% by legal entities and 3% by individuals Strong international presence with 86% of free float currently held by foreign institutional investors Piraeus Stock & Warrant Data Common Shares HFSF bn Private sector bn Total bn Warrant Information Issued warrants 844 mn Shares per warrant 4.48 Warrant Information Exercise Date Strike price Jan 2 nd Jul 2 nd Jan 2 nd Jul 2 nd Jan 2 nd Jul 2 nd 2016* Jan 2 nd Jul 2 nd Jan 2 nd * end of HFSF lock-up period 60 Appendices For each share subscribed by a private investor in the rights issue of Jun.2013, 1 warrant was provided, granting the right to acquire 4.48 common Piraeus shares from the HFSF Warrants can be exercised within 4.5 years following the share offering of Jun. 13; third strike date Jan 2 nd 2015 at Strike price = subscription price + interest accruing at 4% in year 1, with an annual 1% step-up thereafter Warrants are traded on the ATHEX, detached from Piraeus Bank shares

61 Communication - Disclaimer Anthimos Thomopoulos, CEO George Poulopoulos, CFO Costas Adamopoulos, Head, Business Planning, IR & Economic Analysis George Marinopoulos, Director, Business Planning & IR Ilias Lekkos, Chief Economist Chryssanthi Berbati, Head, IR Vicky Diamantopoulou, Head, Business Planning 4 Amerikis St, Athens Tel. : (+30 ) investor_relations@piraeusbank.gr Bloomberg: TPEIR GA <F8> Reuters: BOPr.AT This presentation has been prepared solely for informational purposes. Any projections or other estimates in this presentation, including estimates of returns or performance, comments with respect to our objectives and strategies, or the results of our operations and business, are forward-looking statements based upon certain assumptions and beliefs in light of the information currently available to the company that may be wrong. These assumptions and beliefs may be influenced by factors within or beyond our control, and actual results may differ materially from any estimates and projections. Factors influencing actual results include but are not limited to fluctuations in interest rates and stock indices, the effects of competition in the areas in which we operate, and changes in economic and regulatory conditions. This presentation is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. No part of this presentation may be construed as constituting investment advice or a recommendation to enter into any transaction. No representation or warranty is given with respect to the accuracy or completeness of the information contained in this presentation, and no claim is made that any future offer to transact any securities will conform to any terms that may be contained herein. Before entering into any transaction, investors should determine any economic risks and benefits, as well as any legal, tax and accounting consequences of doing so, as well as their ability to assume such risks, without reliance on the information contained in this presentation. 61 Last modified date: September 26th 2014