Investor Presentation. July 2013

Transcription

1 Investor Presentation July 2013

2 2 Table of Contents Pages I. Alpha Bank Overview II.Recent Developments and Alpha Bank Highlights III. First Quarter 2013 Result Highlights IV. Greece and SEE Macroeconomic Environment V. Appendix I VI. Appendix II 1.Group Profit & Loss 2. Business Unit Financials

3 I. Alpha Bank Overview

4 Alpha Bank at a Glance Alpha Bank at a Glance Shareholder Structure as of 28/06/2013 Founded in 1879 by the Costopoulos family Consistency in management ensuring firm implementation of Alpha Bank s strategy A leading franchise in Greece A leading branch network with 733 branches Shares excl. HFSF 1 Founding Family 6% Greek Institutional Investors 5% Romania Foreign Insitutional Investors 44% 54.0bn of customer loans 36.0bn of customer deposits Well-established presence in SEE Individuals 45% Nationwide coverage across all SEE countries with a network of 492 branches 10.3bn of customer loans in SEE Warrants Founding Family 5% Greek Institutional Investors 3% 5.5bn of deposits in SEE Acquisition of Emporiki Bank (6 th player in the Greek market) completed February 1 st Foreign Insitutional Investors 56% Successful completion of the 4.6bn Capital Strengthening Plan in June 2013 Individuals 36% 1 The Hellenic Financial Stability Fund ( HFSF ) holds 9.1bn common shares with restricted voting rights (Article 7a of L.3864/2010) out of the total 10.9bn 4

5 5 A Strong Franchise with a Regional Footprint Geographical Footprint Greece Serbia FYROM Romania Bulgaria Ukraine Q1 13 Contribution to Group Mar. 13 Branches % Employees 11,419 64% Gross Loans ( bn) % Deposits ( bn) % Pre-Provision Income ( m) % Albania Greece SEE Cyprus Q1 13 Contribution to Group Mar. 13 Branches % Employees 6,234 35% Gross Loans ( bn) % Deposits ( bn) % Pre-Provision Income ( m) %

6 II. Recent Developments and Alpha Bank Highlights

7 7 Overview of Capital Strenghtening Plan Capital Strengthening Plan Structure Capital Strengthening Plan of 4,571mn ( Total Capital Increase ) Private Sector Participation of 550mn ( Capital Increase Private Sector ): 457.1mn rights issue with pre-emption rights extended to existing Alpha Bank shareholders ( Rights Offering ) 92.9mn Private Placement ( Private Placement ) Without pre-emption rights, the Hellenic Financial Stability Fund ( HFSF ) covers the remaining 4,021mn Warrants Warrants were granted to private investors participating in the Capital Increase Private Sector, providing them with rights to acquire shares issued by the Bank and owned by the HFSF Ratio of warrants to acquire 7.41 shares per 1 share subscribed for Private Sector Investors participating in the Capital Increase will have the opportunity to acquire those shares over the next 4.5 years at certain terms Terms & Conditions Type of Security: Ordinary shares Subscription Price: 0.44 per new share Subscription Ratio for Rights Offering: new shares per 1 existing share Shareholders received new shares for every existing share held on record date 1 new share carries 1 warrant permitting holders to purchase shares subscribed by HFSF at selected intervals over the next 4.5 years at subscription price increased by an annual margin Number of New Shares Issued: 10,388,636,364 split between Rights Offering: 1,038,863,636 Private Placement: 211,136,364 HFSF: 9,138,636,364

8 8 Fully Underwritten Rights Offering Fully underwritten 457mn Rights Offering from the private sector by a syndicate of international investment banks: J.P. Morgan and Citigroup acted as Global Co-ordinators and Joint-Bookrunners; HSBC Bank plc and Crédit Agricole CIB acted as Joint-Bookrunners; Axia Ventures Group acted as Co-Lead Manager and Alpha Finance acted as advisor to the issue Timetable of events May 2 May 13 May 17 May 27 May 31 June 11 Approvals from HCMC and ATHEX Shares trade exrights. Record date: May 15th Subscription Period and Trading of Rights commences Trading of Rights ceases End of Subscription Period Commencement of trading of new shares

9 Private Sector Test Comfortably Met 457.1mn Rights Issue Subscription Results % Total vs Capital Increase of 986mn Total New Shares 1,038,863,636 Exercise of Preemption Rights 1,001,311, % 96.7% Unappropriated 37,511, % 3.3% % Unappropriated Oversubscription 720,475, x 16.6x % oversubscription satisfaction 5.2% 6.0% Total Demand 1,721,786,857 1,65x 1,52x Private Placement of 92.9mn covered by high quality strategic and institutional investors of which 85% are Foreign 9

10 10 Key Investment Highlights Improving fundamentals in Greece Expected recovery of the Greek economy after 6 years of recession coupled with significant fiscal consolidation and regained competitiveness Returning international investment into selected sectors Returning confidence to the banking sector which has rapidly consolidated in 2012 Robust capital position with 13.9% pro-forma Core Tier 1 ratio as of March 31, 2013 Preservation of capital and resilient operating performance Good liquidity position with 130% loan-to-deposit ratio as of March 31, 2013, manageable Eurosystem funding among Greek peers Resilient PPI track record with upside through decreasing deposits rates, less use of expensive ELA funding, yield on recapitalisation proceeds and cost synergies Manageable integration effort for Emporiki with significant scope for synergies

11 11 Alpha Bank Group Highlights Key Alpha Bank Group numbers million Mar-13 Total assets 71,806 Gross loans 64,824 Provisions (10,062) Deposits 42,045 Shareholders equity* 3,487 Total operating revenue 599 Operating expenses (322) Pre-provision income 277 Branches (#) 1,226 Employees (#) 17,767 * Shareholders Equity pro-forma for recapitalisation stands at 8.1bn Emporiki consolidated into Alpha Bank following closing of the transaction on February 1, 2013 Improvement of pre-provision income driven by both steady revenue performance and prudent cost management Positive asset quality trends with decreasing NPL formation and stable coverage at 52% Note: All numbers in this presentation include Emporiki as of 1/2/2013, unless stated otherwise

12 Integration progress update Risk / Credit Initiatives/ activity Integration of risk and credit management Harmonization of credit policies and credit ratings Establishment of common credit approval bodies Current status Completed On track Retail Wholesale IT and Operations Support functions Other Integration of branch network and product divisions management Design of combined branch network footprint Common product offering Alignment of pricing and uniform service charges Re-branding of retail branches Integration of wholesale banking management Common product offering Alignment of pricing Appointment of single Relationship Manager per customer Consolidation of treasury operations Integration of IT and Operations management Purchasing spend optimization planning and early wins IT CapEx revision Implementation of common client servicing platform in branches Consolidation of Help Desk Integration of Data Centers in Bank owned premises Customer data cleansing Consolidation of core IT systems (customer DB, deposits, cards, ATMs) Integration of Internal Audit and Compliance management Harmonization of internal audit and compliance policies and processes Integration of audit teams Legal merger New organizational structure 9 branches to be co-located by June 2013 In progress, to be completed by September 2013 To be further enabled by the legal merger 50 branches online (full network in September) To be completed by Q Due in October 2013 (exc. loans: by Q1 2014) 12

13 III. First Quarter 2013 Result Highlights

14 Capital Base has been Preserved and Capital Ratios Increased to 13.9% during Q EBA Core Tier I Ratio Build up ( million) EBA CT1 ratio 13.7% 13.9% (63) (268) 7,908 8,046 7,779 RWAs 2 EBA Core Tier I 31/12/20121 Q Profit AFS Unrealized Gains Other Pro-forma EBA Core Tier I Net DTA movement EBA Core Tier I 31/03/ billion 57.7 bn 55.9 bn 1 Including 4.6bn capital increase 2 Adjusted for 2.6bn of Emporiki negative goodwill and 120mn gain from the initial recognition of the convertible bond issued to Crédit Agricole Group RWAs development ( billion) (3.0%) Common Shareholders Book Value Build-up ( billion) Dec. 12 Mar. 13 Credit Risk Operational Risk Market Risk Common shareholders equity 31/12/2012 Q movement Common shareholders equity 31/03/2013 Recapitalisation Common shareholders Book Value after Recapitalisation

15 Continued Improvement in Liquidity Position with Net Deposit Inflows and Decrease of Eurosystem Funding Evolution of Alpha Bank Deposits ( billion) (2.3) (8.1%) qoq +2.7% qoq +8.3% qoq Abroad Greece Mar. 12 Δ Q Jun. 12 Δ Q Sep. 12 Δ Q Dec. 12 Emporiki Alpha Bank Q1 13 Δ Apr 13 Q1 13 Improved funding mix Eurosystem funding evolution ( billion) ELA funding ECB funding 23.7bn 23.7 Buffer 12bn 20.0bn Restoration of confidence in the banking system and gradual recovery of the Greek Economy Decrease in Eurosystem funding in Q by 4.9 billion 1 and restored more conducive ECB/ELA mix 2012 Q Q includes Emporiki ECB funding of 1.2 billion and unused collateral of 5.0 billion 15

16 NIM decreases as deposit repricing effects yet to come, while Central Bank funding mix reduces funding cost Pre-Provision Income Build-up Group NII decomposition ( million) ( million) % 2.6% 2.4% 2.0% 1.8% Loans (13) Deposits NIM (47) (60) (72) (93) (173) Q4 12 Δ NII Δ Fees Δ Other Δ OPEX Emporiki Contribution Q1 13 Q1 12 Q2 12 Q3 12 Q4 12 Q Excluding extraordinary costs Central Bank Funding Average Balances and Cost Comments ( billion) 2.70% 2.36% 1.90% 1.83% 1.96% 1.70% % Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Apr-13 2 Excluding Fees ELA ECB Funding 2 Cost Deposits contribution to NII deteriorated in Q as the higher priced time deposits of Emporiki weigh into the mix Positive impact from repricing Greek time deposits yet to fully come through gradually during 2013 Reduced central bank funding and more conducive ECB/ELA mix leading to significant reduction of funding cost Income from financial operations mainly impacted by the gain of 120mn from the initial recognition of the convertible bond issued to Credit Agricole 3 Not incorporating ECB rate cut in May

17 Solid Loan Contribution to NII While Full Effect of Deposit Repricing Yet to Translate into Results 17 NII Loans Contribution Deposit Spreads ( million) (bps) Q1 12 Q2 12 Q3 12 Q4 12 Q (29) (19) (30) (29) (54) (197) (228) (256) (287) (335) Q1 12 Q2 12 Q3 12 Q Q1 13 Sight and Savings - Greece SE Europe Time Deposits - Greece Loans Spreads - Group (bps) 1 With Emporiki contribution Renewals & New Euro Time Deposits Spreads (Greece - excluding State deposits) ( bn) (bps) bps (409) (413) (415) (396) (386) (357) +26bps (431) (438) (426) Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Alpha Bank Spreads Emporiki Spreads

18 Costs remain under strict control Total Operating Expenses ( million) (3.8%) (4.8%) 252 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Alpha Bank Extraordinary Costs Emporiki Q Continued efforts to increase efficiency result in further cost reduction; 3.8% yoy decrease in operating expenses Emporiki Q1 13 operating expenses at 99mn or a decrease of 16.6% compared to Q1 2012; strong performance in both staff expenses and general expenses underlines potential for capturing synergies Wages & Salaries General Expenses Headcount (FTE) Alpha Emporiki Number of Branches Alpha Emporiki 14,239 13,564 4, o.w. Greece o.w. Greece 7,675 7,389 4, ( million) ( million) (7.7%) (2.5%) Emporiki Emporiki Q1 13 Q Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q1 12 Q2 12 Q Q4 12 Q1 13 Alpha Bank Alpha Bank Staff costs decreased by 7.7% yoy, due to accelerated attrition in Greece and the new two-year collective agreement that came in force in early May 2012 General expenses were down by 2.5% yoy, from an already low level following continuous procurement optimisation initiatives Emporiki Q1 13 staff expenses at 66mn & general expenses at 26mn, down by 7.0% and 37.2% yoy respectively 1 Excluding extraordinary costs 18

19 19 Stabilizing Economic Environment led to a Decreased NPL Formation for another Quarter, while Increasing Coverage at 52% NPL formation Impairment Allowances and Coverage NPL ratio (bps) % 150 ( billion) Coverage 47% % 52% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 incl. Emporiki Alpha Bank Emporiki Group Business Loans Mortgages Consumer Credit 1 Adjusted for the PSI+ impact on state guaranteed loans Loan Loss Provisions Comments (bps) NPL formation of Alpha Bank has stabilised at 180bps; including Emporiki, the quarterly formation is at 150bps Stable coverage level at 52% results into impairment of 505mn Pre-crisis ( ) 5Y Average: 91bps Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 incl. Emporiki As a result of the above, loan loss provisions drop from 439bps to 311bps back at Q2 12 level

20 IV. Greece and SEE Macroeconomic Environment

21 Greece

22 Successful Adjustment And Bank Recapitalization Improve Economic Sentiment Recovery Prospects Strengthen As Liquidity Constraints Ease Bank recapitalization is expected to usher in a new era for the restoration of confidence and the resumption of growth, as liquidity conditions improve and portfolio investor interest is rekindled. Successful privatizations are timely coming on stream enhancing confidence and paving the way for domestic and foreign investors to commit capital resources to long-term investment projects in Greece. Twin primary fiscal and current account surpluses to emerge from 2013 as imbalances are successfully tackled through fiscal consolidation and gains in competitiveness. With deficits under control, emphasis is now being placed on downsizing of public administration and the drive to rein on tax evasion, enhancing sustainability of adjustment. Competitiveness Investment Driven Gains Driven Growth Bring Growth External (% (% YoY) Balance YoY) FDI & Exports (2007) Competitiveness 15,0% 10,0% 5,0% Fiscal Consolidation On Track In bn 15 Net Revenue 10 5 (Central Government) Q Q Q Q Q Current Account (% of GDP) Q Q Q F 0,0% -5,0% -10,0% -15,0% 0-5 Primary Surplus Primary -1,547 Expenditure Jan.-Mar Jan.-Mar Jan.-Mar Source: Bank of Greece, European Commission, Alpha Bank forecasts Source: Ministry of Finance 22

23 The Greek Shoots Of Recovery FDI Economic & Exports Sentiment (2007) Indicator Hirings Minus Dismissals 120 Economic Sentiment Index, lhs GDP (% yoy growth), rhs % 8% 6% 4% In thousand people May 2012-Apr % % -2% 0 May 2006-Apr % -6% -8% -10% May 2011-Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr Household Deposit Flows Credit Flows to Non-Financial Corporates millions millions m moving average m moving average Source: Central Banks, Statistical Authorities, Eurostat, IMF, Bloomberg, Alpha Bank Research 23

24 SEE

25 Recovery Moderated In SEE, Postponed Until 2014 In Greece Source: Central Banks, Statistical Authorities, Eurostat, IMF, Bloomberg, Alpha Bank Research GDP Growth Credit Expansion 4% f GDP Growth 2% 0% -2% -4% -6% -8% Greece Eurozone Bulgaria Romania Serbia Source: Alpha Bank Research Greece Bulgaria Romania Serbia 14,8% 8,5% 6,4% 4,1% 4,5% 4,3% 4,2% 3,5% 3,8% 1,4% 3,9% 2,8% 2,8% 2,6% -1,4% 0,0% -4,0% -2,0% -3,9% -3,1% f f Source: Alpha Bank Research 10y Government Yield Spread REER (based on ULC) (2000=100) Italy (LHS) Spain (LHS) Portugal (LHS) Greece (RHS) Italy Ireland Spain Portugal Germany Greece

26 SEE: Fragile Global Economic Outlook Threatens Recovery Source: Central Banks, Statistical Authorities, Eurostat, IMF, Bloomberg, Alpha Bank Research 26 40% 20% 0% -20% Bulgaria -40% Net FDI (RHS) Credit Expansion - YoY% (LHS) Remittances Jan-Feb 2013 Jan-Feb mn mn Industrial Production - YoY% (LHS) Romania Remittances Jan-Feb 2013 Jan-Feb mn 20% 392 mn 15% 10% 5% 0% -5% -10% -15% -20% Net FDI (RHS) Credit Expansion - Yoy% (LHS) Industrial Production (YoY%) Serbia 40% 20% 0% -20% Remittances Jan-Feb 2013 Jan-Feb mn mn -40% Net FDI (RHS) Credit Expansion - YoY% (LHS) Industrial Production (YoY%) GDP Growth YoY% 6% Bulgaria 4% Romania 2% 0% -2% -4% Serbia -6% -8% -10% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q

27 SEE: External Balance Stable But Capital Inflows Remain Weak External Balances at sustainable levels Romania Bulgaria Serbia ( billion) Net FDI C/A deficit Serbia Foreign Romania Bulgaria investors remain selective & cautious ( billion) 20 FDI Inflows Romania Other Investment Inflows Total Inflows Net Other 10 0 Q1 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q Q1* Q * Jan-Feb Gross Official Reserves / Short-term External Debt 173% 164% 147% 145% 133% 113% Romania 2,5 1,5 0,5 FDI Inflows Bulgaria Other Investment Inflows Total Inflows -0,5-1,5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1* Bulgaria Romania Dec 2011 Dec 2012 Feb 2013 * Jan-Feb Source: Central Banks, Statistical Authorities, Eurostat, IMF, Bloomberg, Alpha Bank Research 27

28 SEE: Fiscal Consolidation Continues In A Rather Weak Growth And Stable Financial Environment Source: Central Banks, Statistical Authorities, Eurostat, IMF, Bloomberg, Alpha Bank Research 28 Bulgaria Romania 16% 14% 12% 10% 8% 6% 4% 2% 0% HICP Inflation (LHS) BGN per EUR (RHS) Key Policy Rate (LHS) 2,15 2,11 2,06 2,02 1,98 1,93 1,89 1,84 1,80 24% 4,75 20% 4,50 16% 4,25 12% 4,00 3,75 8% 3,50 4% 3,25 0% 3, HICP Inflation (LHS) Key Policy Rate (LHS) RON per EUR (RHS) Serbia 24% 21% 18% 15% 12% 9% 6% 3% 0% CPI Inflation (LHS) RSD per EUR (RHS) Key Policy Rate (LHS) General Government Balance (in % of GDP) -1,0% -1,3% -2,0% -2,9% -2,4% -4,1% -5,0% -5,7% -6,4% f Bulgaria Romania Serbia *European Commission, Winter 2013

29 V. Appendix I

30 30 Group Loans Group Loans Group Retail Loans ( billion) Other ( billion) Mortgages Mar 12 Mar 13 SE Europe Greece Mar 12 Mar 13 Consumer Credit Small Business Loans SEE Loans ( billion) Group Wholesale Lending ( billion) Cyprus Balkans Mar 12 Mar 13 Mar 12 Mar 13

31 31 Retail Lending Mortgage Balances - Greece Consumer Credit Balances - Greece ( million) ( million) 6,379 4,532 1,170 17,668 1,286 Credit cards 11,032 3,246 5,209 Consumer loans Mar 12 Mar 13 Mar 12 Mar 13 Small Business Lending Balances - Greece Comments ( million) Stricter underwriting caused housing loans rejection rate to increase to 62% from 61% a year ago 4,529 6,909 New production mortgages LTV at 43%, total book average LTV at 54% Consumer loan rejection rate at 72% from 71% a year ago Mar 12 Mar 13

32 32 Corporate Banking Volume Reduction Medium & Large Business Loans Greece Business Loans Portfolio Structure - Group ( million) Business Loans 36.1bn Other, 8.5% Services, 7.1% Industry, 25.5% 18,127 23,006 Real Estate, 9.1% Shipping, 5.9% Trade, 24.5% Tourism, 6.6% Mar 12 Mar 13 Transportation, 2.3% Construction, 10.5% Shipping Loans Balances Shipping Loans Portfolio Structure ( billion) Dry Bulk 37% Panamax 9% Capesize 9% Yachts 1% Passenger 8% Containers 8% Duration of loan portfolio at 6 years LTV at 83% Dec. 08 Dec. 09 Dec. 10 Dec. 11 Mar. 12 Jun. 12 Sep. 12 Dec. 12 Q1 13 Handy max/ Handy size 19% VLCC 4% Suezmax 14% Product Tankers 12% Panamax 15% Tankers 42% Loans Balances USD/EUR Aframax 1%

33 33 Deposit Evolution Breakdown Customer Assets Deposits Evolution Group ( billion) ( million) Core Deposits 9,995 (421) (48) 194 3,517 13, Investment Balances Mar 12 Q2 12 Q3 12 Q4 12 Q1 13 Mar 13 Liquidity 17.9 Time Deposits: 10,063 28,808 Transaction Balances ,867 1,981 (1,832) (728) Mar 12 Mar 13 Sight & Savings Deposits Other Mutual Funds Time Deposits Private Banking Money Morket Mutual Funds Mar.12 Q2 12 Q3 12 Q4 12 Q1 13 Mar.13 On Balance Sheet

34 Wealth Management evolution according to developments in the Economic Environment 34 Alpha Private Bank Asset Management ( million) 3,760 ( million) 2,880 2,917 1,460 2, ,610 1, ,111 1,359 1,177 1, Mar. 11 Mar. 12 Mar Mar. 11 Mar. 12 Mar. 13 Discretionary Advisory Execution Only Other AUM Non Money Market Mututal Funds Money Market Mutual Funds

35 35 SEE ( million) Cyprus Δ% Romania Δ% Bulgaria Δ% Serbia Δ% Albania Δ% FYROM Δ% TOTAL Δ% Mar yoy yoy yoy yoy yoy yoy yoy Loans 5, % 3,028 (6.3%) 717 (14.4%) 770 (11.2%) 373 (3.3%) 69 (4.0%) 10, % Mortgages 2, % 777 (11.1%) 158 (2.0%) % 70 (35.2%) 16 (3.8%) 3, % Consumer Credit % % 67 (8.6%) 152 (16.3%) 7 (9.3%) 22 (19.7%) % Businesses 2, % 1,907 (10.2%) 492 (18.5%) 419 (13.9%) % % 5,604 (2.8%) Deposits 2,639 (1.1%) 1, % 349 (0.1%) % % % 5, %

36 36 SEE ( million) Cyprus Δ% Romania Δ% Bulgaria Δ% Serbia Δ% Albania Δ% FYROM Δ% SE Europe Δ% Mar yoy yoy yoy yoy yoy yoy yoy Operating Income 37.6 (19.1%) % % 9.4 (14.6%) 4.4 (11.5%) % (7.6%) Operating Expenses (pre-o/h allocation) % % 7.8 (3.3%) 9.2 (6.7%) % 1.7 (13.7%) % Impairment Losses % % 0.8 (81.4%) % 0.6 (32.7%) % Profit Before Tax (pre- O/H allocation) (20.4) (12.6) 2.1 (5.7) 0.5 (50.5%) (1.0) 32.7% (36.8) Loan Market Share 7.0% 5.9% 2.8% 4.4% 9.3% 1.9% NPL Ratio 29.2% 13.6% 19.6% 18.6% 16.3% 29.5% 22.4% Branches Employees 1,019 2, , ,

37 VI. Appendix II

38 1. Group Profit & Loss

39 39 Alpha Bank Group ( million) Q Q Q Q Q % Change Q1 13/Q1 12 Operating Income % Net Interest Income (22.9%) Net fee and commission income % Income from Financial Operations (12.7) 6.0 (282.2) Other Income % Operating Expenses (322.0) (389.8) (256.1) (258.5) (262.0) 22.9% Staff Costs (163.3) (165.4) (119.2) (125.9) (129.1) 26.5% General Expenses (129.4) (196.3) (114.4) (110.4) (110.7) 16.8% Depreciation and amortization expenses (29.4) (28.1) (22.5) (22.1) (22.2) 32.4% Impairment losses on credit risk (505.3) (497.9) (450.0) (399.7) (320.7) 57.6% Negative Goodwill from Emporiki Transaction 2, Profit / (Loss) before tax 2,403.9 (456.9) (300.6) (206.4) (376.0) Income Tax Net Profit / (Loss) 2,876.6 (373.1) (248.2) (147.2) (313.2) Net Profit / (Loss) attributable to shareholders 2,876.5 (373.5) (248.3) (147.2) (313.2) Net Interest Income / Average Assets - MARGIN 1.8% 2.0% 2.4% 2.6% 2.8% Cost / Income (excluding trading and extraordinary costs) 79.1% 70.7% 61.2% 58.0% 53.6%

40 2. Business Unit Financials

41 41 Group Results by Business Unit ( million) Retail Commercial & Corporate SE Europe Investment Banking & Treasury Asset Management Other Group Jan-Mar Jan-Mar Jan-Mar Jan-Mar Jan-Mar Jan-Mar Jan-Mar Operating Income (9.3) ,744.4 (302.5) 3, Net Interest Income (73.4) (29.4) Net fee and Commission Income (2.9) (0.4) (0.2) Income from Financial Operations (305.3) (282.2) Other Income (0.0) 2, , Operating Expenses (183.9) (135.1) (39.2) (32.8) (70.2) (70.7) (6.9) (5.5) (6.6) (6.9) (15.2) (11.0) (322.0) (262.0) Staff Costs (93.7) (64.5) (24.0) (21.8) (33.1) (33.2) (4.2) (3.1) (3.5) (3.8) (4.8) (2.6) (163.3) (129.1) General Expenses (77.2) (61.4) (9.8) (7.9) (31.0) (30.0) (2.4) (2.1) (2.8) (2.6) (6.3) (6.8) (129.4) (110.7) Depreciation (13.0) (9.3) (5.3) (3.0) (6.2) (7.5) (0.4) (0.3) (0.3) (0.4) (4.1) (1.6) (29.4) (22.2) Impairment Losses (297.3) (156.3) (131.8) (99.8) (76.2) (64.6) (505.3) (320.7) Profit / (Loss) before tax (280.5) (46.8) (43.1) (23.5) (4.7) (14.8) ,729.2 (313.5) 2,403.9 (376.0) Risk Adjusted Return on 8% Regulatory Capital Cost / Income Ratio (excl. trading and extraordinary costs) (75%) (17%) 0% 6% (27%) (14%) (5%) (17%) 8% 14% 329% (87%) 92% 56% 23% 22% 70% 66% (9%) (21%) 85% 76% 1% 393% 11% 54%

42 42 Retail Business Unit: Results ( million) Q Q Q Q Q Operating Income Net Interest Income Net fee and Commission Income Income from Financial Operations Other Income Operating Expenses (183.9) (129.5) (129.3) (130.8) (135.1) Staff Costs (93.7) (58.8) (59.0) (62.9) (64.5) General Expenses (77.2) (60.6) (60.7) (58.6) (61.4) Depreciation (13.0) (10.1) (9.5) (9.3) (9.3) Impairment losses (297.3) (250.1) (207.7) (159.0) (156.3) Profit / (Loss) before tax (280.5) (157.4) (99.7) (47.1) (46.8) RWA 18,800 12,955 13,101 13,264 13,422 Risk Adjusted Return on 8% Regulatory Capital (74.6%) (60.8%) (38.0%) (17.8%) (17.4%) Cost / Income Ratio (excl. trading and extraordinary costs) 92.2% 58.5% 54.8% 54.4% 55.6%

43 43 Commercial & Corporate Business Unit: Results ( million) Q Q Q Q Q Operating Income Net Interest Income Net fee and Commission Income Income from Financial Operations Other Income Operating Expenses (39.2) (34.4) (31.0) (31.2) (32.8) Staff Costs (24.0) (19.4) (20.1) (20.7) (21.8) General Expenses (9.8) (8.1) (8.2) (7.7) (7.9) Depreciation (5.3) (6.9) (2.7) (2.8) (3.0) Impairment losses (131.8) (153.8) (165.0) (162.3) (99.8) Profit / (Loss) before tax 1.7 (28.4) (36.8) (29.5) 20.2 RWA 23,796 16,062 16,247 16,402 16,507 Risk Adjusted Return on 8% Regulatory Capital 0.4% (8.9%) (11.3%) (9.0%) 6.1% Cost / Income Ratio (excl. trading and extraordinary costs) 22.8% 19.9% 19.6% 19.5% 21.6%

44 44 Asset Management Business Unit: Results ( million) Q Q Q Q Q Operating Income Net Interest Income Net fee and Commission Income Income from Financial Operations 0.2 (1.7) Other Income (0.0) Operating Expenses (6.6) (7.1) (6.5) (6.8) (6.9) Staff Costs (3.5) (3.6) (3.6) (3.8) (3.8) General Expenses (2.8) (3.0) (2.4) (2.5) (2.6) Depreciation (0.3) (0.5) (0.4) (0.5) (0.4) Impairment losses Profit / (Loss) before tax 1.3 (0.1) RWA Risk Adjusted Return on 8% Regulatory Capital 7.9% (0.8%) 12.2% 38.2% 14.0% Cost / Income Ratio (excl. trading and extraordinary costs) 85.3% 81.8% 81.1% 81.5% 76.1%

45 Investment Banking & Treasury Business Unit: Results 45 ( million) Q Q Q Q Q Operating Income 2.3 (88.7) (91.7) (60.2) (9.3) Net Interest Income (73.4) (128.3) (102.9) (82.7) (29.4) Net fee and Commission Income (2.9) (1.5) (2.2) Income from Financial Operations Other Income (1.2) Operating Expenses (6.9) (5.0) (5.1) (5.2) (5.5) Staff Costs (4.2) (2.8) (2.7) (2.9) (3.1) General Expenses (2.4) (1.9) (2.0) (2.0) (2.1) Depreciation (0.4) (0.3) (0.3) (0.3) (0.3) Profit / (Loss) before tax RWA 4,561 4,135 4,250 4,390 4,470 Risk Adjusted Return on 8% Regulatory Capital (5.1%) (113.4%) (113.9%) (74.4%) (16.5%) Cost / Income Ratio (excl. trading and extraordinary costs) (9.1%) (3.9%) (4.8%) (6.4%) (21.4%)

46 46 SE Europe Business Unit: Results ( million) Q Q Q Q Q Operating Income Net Interest Income Net fee and Commission Income Income from Financial Operations (0.5) 4.5 Other Income Operating Expenses (70.2) (80.5) (69.2) (76.2) (70.7) Staff Costs (33.1) (31.9) (31.2) (32.9) (33.2) General Expenses (31.0) (41.5) (30.8) (35.5) (30.0) Depreciation (6.2) (7.1) (7.2) (7.8) (7.5) Impairment losses (76.2) (94.0) (77.3) (78.4) (64.6) Profit / (Loss) before tax (43.1) (60.1) (22.8) (41.8) (23.5) RWA 8,045 7,973 8,141 8,351 8,515 Risk Adjusted Return on 8% Regulatory Capital (26.8%) (37.7%) (14.0%) (25,0%) (13.8%) Cost / Income Ratio (excl. trading and extraordinary costs) 70.1% 72.9% 59.9% 67.2% 65.9%

47 47 Other Business Unit: Results ( million) Q Q Q Q Q Operating Income 2, (31.4) (20.8) (302.5) Net Interest Income (0.4) Net fee and Commission Income (0.1) (0.0) (0.2) Income from Financial Operations (38.7) (25.7) (305.3) Other Income 2, Operating Expenses (15.2) (133.3) (15.1) (8.3) (11.0) Staff Costs (4.8) (49.0) (2.5) (2.7) (2.6) General Expenses (6.3) (81.2) (10.3) (4.1) (6.8) Depreciation (4.1) (3.1) (2.3) (1.4) (1.6) Impairment losses - (0.0) Profit / (Loss) before tax 2,729.2 (113.9) (44.2) (27.7) (313.5) RWA

48 48 Disclaimer This presentation contains forward-looking statements, which include comments with respect to our objectives and strategies, and the results of our operations and our business, considering environment and risk conditions. However, by their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. The risk exists that these statements may not be fulfilled. We caution readers of this presentation not to place undue reliance on these forward-looking statements as a number of factors could cause future Group results to differ materially from these targets. Forward-looking statements may be influenced in particular by factors such as fluctuations in interest rates, exchange rates and stock indices, the effects of competition in the areas in which we operate, and changes in economic, political, regulatory and technological conditions. We caution that the foregoing list is not exhaustive. When relying on forward-looking statements to make decisions, investors should carefully consider the aforementioned factors as well as other uncertainties and events. The securities to be issued in the proposed recapitalisation process mentioned herein have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

49 49 Investor Relations Contacts Mr. Vassilios Psaltis General Manager and CFO Mr. Dimitrios Kostopoulos Manager Investor Relations Division Ms. Elena Katopodi Assistant Manager Investor Relations Division Mr. Michael Massourakis Senior Manager Economic Research Division Mr. Dimitrios Maroulis Manager Economic Research Division Ms. Stella Traka Investor Relations Officer ALPHA BANK 40, Stadiou Street, Athens, Greece Internet Reuters Bloomberg : : ACBr.AT : ALPHA GA