FY R e s u l t s. March 20, 2018

Transcription

1 FY R e s u l t s March 20, 2018

2 Table of Contents Pages I. Macroeconomic Update 3 II. FY 17 Performance Highlights 7 III. FY 17 Performance Balance Sheet Pre Provision Income Asset Quality Liquidity Capital 37 IV. Appendix 39 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. 2

3 I. Macroeconomic Update FY 2017 Results 3

4 I Economy Grows Backed on Investment as the 3rd Economic Adjustment Programme Remains on Track GDP Contributors - Demand Side (in pps) Correction of Excessive Imbalances (% of GDP) Source: ELSTAT Net Exports Inventories Investment Public Consumption Private Consumption GDP (% yearly) General Government Primary Balance Current Account Balance Source: ELSTAT Investment by Component (% of GDP) 25% 20% 15% 10% 5% 0% Other Investment Contruction excl. Residential Public Investment* (% yoy change), rhs Machinery & Equipment Residential * Public Investment the source is ELSTAT, Public Investment 2017 the source is the Public Investment Budget expenditure 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% GDP increased by 1.4% in 2017, driven mainly by investment, while private consumption almost stagnated Residential investment contracted further in 2017, but private investment excl. residential recovered at levels seen before the crisis In 2017, investment growth (+9.7%) was supported mainly by investment in machinery & equipment Public Investment Budget expenditure retrenchment continued in 2017, in an effort to meet the ambitious fiscal targets set The primary surplus of the general government in 2017 is expected to reach 2.4% of GDP, i.e. higher than the target of 1.75%. This overachievement is taking place for a second consecutive year, while the target for a primary surplus of 3.5% of GDP in 2018 is considered within reach 4

5 Thousands I Tourism and Manufacturing Supported Economic Growth in 2017 Tourism and Shipping Balance Support the Recovery of the CA Balance of Goods Services Balance: Tourism Prinary Income Balance Secondary Income Balance Services Balance: Shipping Services Balance: Other Current Account Balance Source: BoG Job Creation in Almost all Sectors of the Economy (in thous.) Other Services Tourism Construction Agriculture Source: ELSTAT Public Admin. & Non-Business Sector* Trade Industry Bars: Contributions of New Jobs per Sector (yearly change in thousand employees) * Includes: Public Administration, Defence, Social Security, Education, Health, Arts Manufacturing Production on An Upward Trend PMI at Unprecedented Level (% ) (units ) 15% 60 10% 55 5% 50 0% % 35-10% 30-15% 25-20% % yoy change, lhs Manufacturing 3-month Moving Average PMI, rhs Short term developments point towards a shift to higher growth rates, as real GDP is expected to pick up at above 2%, annually, in the coming two years Current Account almost balanced, in 2017, mainly supported by the surpluses in tourism and shipping. Deficit in goods balance widened as a result of imports increase by 12.7% In 2017, strong tourism revenues (+10.5%) and manufacturing production (+3.3%), supported growth PMI manufacturing index climbed to a new record high in early 2018 In 2017, employment was supported by Trade, Tourism, Industry and Public Administration PMI 2018 as of January 2018 Sources: ELSTAT, Markit PMI 5

6 I Confidence Restores / Supportive Wider Recovery in Europe Positive Deposit Evolution and Narrowing of Spread Government Arrears to the Private Sector Moving Further Down Conclusion of the 1st Review, no CC for new deposits Delays in the 2nd Review 2nd Review Conclusion (in bps) Deposits Outstanding (in bln ) 10Y Bonds Spread (Greek - German), lhs Deposit Outstanding Jan. 2018: Household: 82%, Enterprises: 18% Sources: Bank of Greece, Bloomberg Source: Min FIn Government Arrears Tax Refund Arrears Total Economic Sentiment Up Both in Euro area and Greece (% ) f Real GDP Greece Real GDP EA ESI Greece, rhs ESI EA, rhs ESI 2018= Average January - February Source: European Commission (units) Government arrears to the private sector kept decreasing to the lowest level of the last seven years The favorable external environment supports growth prospects in Greece As the completion of the programme remains on track, the following elements in the forthcoming months are of great significance: i. The specification of the debt relief measures that will strengthen investor s confidence and safeguard smooth and sustainable access to capital markets ii. A financial safety net to assure that the country is able to cover its financing needs and withstand financial shocks and heightening borrowing costs iii. The speed up of the privatization programme and the focus on the structural reforms agenda in order for the economy to regain a sustainable access to the markets, boost competitiveness and accelerate employment gains 6

7 II. FY 17 Performance Highlights FY 2017 Results 7

8 II FY 2017 Financial Performance Overview Strong Capital Position Strong CET1 ratio at 18.3% and Tangible Equity at 9.2bn as of December 2017 IFRS 9 impact of 1.1bn after tax or c.0.1% on phased-in CET1 ratio which stands at 18.3%. FLB3 IFRS 9 CET1 ratio at 15.9% Continued Progress on Asset Quality NPEs down by 2.6bn and NPLs by 3.0bn in Greece within 2017 NPEs (solo basis) as of December 2017 at 24.8bn exceeding the target of 25.1bn by 0.3bn Successful completion of our 1 st loan portfolio sale in Greece of 3.7bn unsecured loans Improved Liquidity Group deposits at 34.9bn, up by 1.9bn within 2017 ELA at 7bn, as of December 2017, reduced by 6.2bn in 2017; down by additional 2bn within year covered bond of 500mn issued in January 2018 with 2.75% yield and oversubscribed order book by almost 5 times Operating Performance Sustained FY 2017 Core PPI at 1.2bn, despite balance sheet deleveraging Recurring operating expenses at 1.1bn, down by 0.4% y-o-y, with C/I ratio at 47.6% for the FY 2017, from 48.2% a year ago Impairment losses at 1.0bn (-14% y-o-y) and CoR at 172bps over gross loans in FY 2017 vs. 191bps in FY 2016 FY 2017 PAT 1 at 90mn versus 20mn in FY Profit After Tax from continuing operations 8

9 II FY 2017 Group P&L and Balance Sheet basic figures Profit & Loss ( million) FY 2017 FY yoy % change Q Q qoq % change Balance Sheet 31/12/ /12/2016 yoy change Net Interest Income (NII) 1,943 1, % (1.5%) Fees and commissions Income % % Trading & Other Income Operating Income 2,464 2, % (9.5%) Total Operating Expenses (1,293) (1,225) 5.5% (444) (289) 53.9% o/w Extraordinary costs 2 (180) (111) (151) (7) Recurring Operating Expenses (1,104) (1,108) (0.4%) (290) (280) 3.5% Pre Provision Income (PPI) 1,171 1, % (58.2%) Core Pre Provision Income 1,215 1, % (8.5%) Impairment Losses (1,005) (1,168) (13.9%) (244) (298) (18.3%) Profit/ (Loss) before income tax (PBT) 165 (10) (87) 77 Income Tax (76) (42) Profit/ (Loss) after income tax from continuing operations Profit/ (Loss) after income tax from discontinued operations (68) 23 (64) Assets (4.1) Net Loans (1.1) Deposits Eurosystem Funding (8.1) ELA (6.2) ECB (2.0) Shareholders Equity Tangible Equity (TE) TBV per Share ( ) Common Equity Tier 1 ratio (CET1) 18.3% 17.1% Capital Adequacy Ratio (Total) 18.4% 17.1% Risk Weighted Assets (1.5) NPL ratio 34.9% 38.1% Cash Coverage 67% 69% Total Coverage 122% 125% NPE ratio 51.7% 53.7% Cash Coverage 45% 49% Total Coverage 100% 106% Profit/ (Loss) after income tax (64) 36 Net Interest Margin (NIM) 3.1% 2.9% 3.1% 3.1% Recurring Cost to Income ratio 47.6% 48.2% 50.6% 47.5% 1 P&L numbers reflect restated figures for the sale of Alpha Bank Serbia 2 Mainly Including ( 93mn) VSS provision and ( 76mn) impairments on fixed assets in Q

10 II Strong capital position with Common Equity Tier I ratio at 18.3%; Fully Loaded CET1 ratio at 18.3%; Tangible Equity at 9.2bn CET1 ratio quarterly evolution ( million) Tangible Equity 9,019 9,193 CET1 capital 8,800 8, % CAD 9,004 FLB3 CET1 excl. DTC law at 12.8% 38bps 25bps 18.3% 18.4% 18.3% (12bps) 2.7bn buffer over OCR SREP of % for % 12.5% CET1 Sep-17 Period Result AFS Reserve RWA impact / Other CET1 Total CAD FLB3 CET1 Non-DTC DTC GGBs Book value evolution 5.59% 4.07% Y GGB mid YTM% CET1 capital increased q-o-q to 9.0bn at the end of December 2017 CET1 ratio amounted to 18.3% vs. 17.8% last quarter, positively Marked at 83% bn 2.5 Marked at 96% affected by the AFS reserve increase Alpha Bank exchanged GGBs of nominal value 2.1bn in Greece s swap conducted in December 2017 Overall Capital Requirement SREP for 2018 at % Sep-17 Book Nominal 10

11 Under IFRS 9 II IFRS 9 implementation - Group basis IFRS 9 impact on capital IFRS 9 impact on CET1 ratio 31 Dec 2017 Pro forma for IFRS 9 IFRS 9 Impact Tangible Equity (1.1) 18.3% 18.3% 15.9% DTA (2.4%) DTC CET 1 capital (phased-in) (0.0) RWA pf IFRS 9 1st amortisation 5 year amortisation IFRS 9 (fully loaded) IFRS 9 impact on NPE cash coverage Loans breakdown in stages under IFRS 9 PE NPE Provisions Coverage 45% +5pp 50% Stage Stage % Stage Stage % Stage Stage % IAS 39 pf IFRS Impact amortisation over 5 years: %, %, %, % and % 2 Group NPE Coverage at 50% refers to 14.4bn provisions over 29.0bn NPEs 11

12 II Building market credibility with successful non-performing loans transactions Origination Asset Class Size Buyer Transaction impact Project Venus Greece Non-Performing unsecured consumer and small business loans Total portfolio: 3.7bn On balance-sheet: 0.9bn B2Holding Reduction in retail NPE ratio for Alpha Bank A.E. by c. 150bps Positive financial impact for the Group resulting from a consideration of 90mn Capital accretive transaction for the Group Corporate Loan Sale Greece Non-Performing corporate loan Total loan: 82mn Foreign institutional investor Contribution to the Bank s NPE reduction Capital accretive transaction for the Group Project Mars Corporate Portfolio Romania Non-Performing mostly secured corporate loans Total portfolio: 360mn On balance-sheet: 260mn Entities financed by a consortium of international investors including Deutsche Bank AG, funds advised by AnaCap Financial Partners LLP and funds advised by APS Investments S.à.r.l. Significant contribution in international assets deleveraging Reduction in total NPE ratio for Alpha Bank Romania S.A. by c. 750 bps Project Mars Retail Portfolio Romania Non-Performing unsecured consumer loans Total portfolio: 50mn On balance-sheet: 23mn B2Holding Positive financial impact and capital ratio accretive transaction for the Group 12

13 II NPE stock in Greece down by 2.6bn in 2017; NPE reduction exceeding the target; Quarterly gross formation turns negative NPE formation - Greece NPE Targets 3 y-o-y - 2.6bn - 8.0bn -32% (0.45) (0.49) (0.91) (0.97) (0.46) 24.8 Outperformed target by bn Dec-16 Jun-17 Entries Exits W/offs Sep-17 Entries Exits Held for Sale 1 2 W/offs Actual Target Dec-18 Target Dec-19 Target Gross NPE formation per segment - Greece 1 ( million) Wholesale Retail SBL Mortgages Consumer (35) (82) (99) (89) (53) (249) (891) (465) (426) Q1 17 Q2 17 Q3 17 Q4 17 Corporate Loan Sale Q1 17 Q2 17 Q3 17 Q4 17 Venus Sale Q1 17 Q2 17 Q3 17 Q4 17 Venus Sale Q1 17 Q2 17 Q3 17 Q4 17 Q1 17 Q2 17 Q3 17 Q4 17 Venus Sale 1 Exits include curings, repayments, liquidations and debt forgiveness 2 Held for Sale include 0.89bn of Venus sale and 0.08bn of Corporate loan sale 3 Actual balances and targets refer to Solo accounts (SSM perimeter) 13

14 II NPL stock in Greece down by 3.0bn in 2017; NPL reduction ahead of target NPL balances evolution - Greece NPL targets 1 y-o-y - 3.0bn - 5.9bn -36% Outperformed 16.5 target by bn Dec-16 Mar-17 Jun-17 Sep-17 Actual Target Dec-18 Target Dec-19 Target Gross NPL formation per segment - Greece 2 ( million) Wholesale Retail SBL Mortgages Consumer (112) (181) (82) (258) (862) (3) (67) (24) (464) (14) (193) (41) (398) Q1 17 Q2 17 Q3 17 Q4 17 Corporate Loan Sale Q1 17 Q2 17 Q3 17 Q4 17 Venus Sale Q1 17 Q2 17 Q3 17 Q4 17 Venus Sale Q1 17 Q2 17 Q3 17 Q4 17 Q1 17 Q2 17 Q3 17 Q4 17 Venus Sale 1 Actual balances and targets refer to Solo accounts (SSM perimeter) 2 Gross formation includes curings, repayments, liquidations and debt forgiveness 14

15 II Group NPE Cash Coverage at 50% pro forma for IFRS 9 Group impairment losses Group cost of risk (over Gross loans) ( million) FY16 1,168mn FY17 1,005mn (bps) FY16 191bps FY17 172bps Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Group NPE Coverage Group NPL Coverage NPE Total Coverage 106% 105% 103% 103% 100% NPL Total Coverage 125% 124% 124% 124% 122% 49% 49% 48% 48% 45% 50% 69% 69% 69% 68% 67% Dec-16 Mar-17 Jun-17 Sep-17 pf IFRS 9 Dec-16 Mar-17 Jun-17 Sep-17 15

16 II Improved deposit gathering pace supports funding profile enhancement Group Deposits y-o-y evolution + 1.9bn Loan to Deposit ratio decreased further (12pp) % 135% 135% 132% 132% 129% 128% 124% 124% 120% Dec-16 Greece Abroad Greece Abroad Dec-16 Jun-17 Sep-17 pf IFRS 9 Group Greece Funding profile on a restoration path away from the Central Banks facilities Loan to Deposit ratio in Greece reduced further to 128% in December 51% 53% 55% 57% 2017 and 124% post loan sales transaction and IFRS 9 effect Group deposits up by 1.9bn in 2017 o/w 1.0bn in Q Yearly increase of Greek deposits by 1.3bn; balanced contribution of business by 0.6bn and of individuals by 0.7bn 20% 18% 14% 12% Dec-16 Jun-17 Sep-17 ELA funding over Assets further reduced to 12% as of December 2017 Depos/Assets ELA/Assets 16

17 II Continuous disengagement from ELA reliance; successful effort to diversify funding sources - inaugural covered bond issue in 2018 Eurosystem funding y-o-y reduction y-o-y - 8.2bn Eurosystem reliance down by 8.2bn in 2017; ELA down at 5.0bn as of March (1.3) (2.7) (2.2) (0.7) (1.3) (2.1) Deposit inflows of 1.3bn within 2017, o/w 0.9bn in Q Securities disposals of 2.7bn y-o-y, o/w.0.9bn in Q Interbank repos at 2.9bn as of March 2018, solely on Greek related assets Second shipping securitisation transaction of $250mn in October 2017 Dec-16 Deposits inflow Securities Repos & other interbank SEE Liquidity Other Δ Mar-18 ECB ELA Funding mix improving Inaugural Covered Bond Issuance 10% 7% 15% 25% 5% 1% 74% 64% ECB Funding ELA Funding Interbank repos Deposits First Greek Bank to test the 5 year tenor with a 500mn Covered bond. Diversified investor base 93% of issuance covered by international institutional investors Order book almost 5 times oversubscribed, one of the largest Corporate order books in Greece since 2009 Pricing set at 2.5% fixed coupon with a yield of 2.75%, 8 bps inside the 5yr Greek Government Bond Dec-16 Strong secondary performance, currently at 90 bps inside the 5yr Greek Government Bond 17

18 II Q Core PPI performance mainly affected by NII headwinds and lower other income PPI q-o-q evolution ( million) mn -8.5% 375 (66) 309 (7) 3 (12) (10) (155) Q3 17 Reported PPI Trading and oneoff costs Q3 17 Core PPI Δ NII Δ Fees Δ Other income Δ OPEX Q4 17 Core PPI Trading Οne-off costs Q4 17 Reported PPI 1 Core PPI over Assets Total Assets y-o-y evolution ( million) 2.00% - 4.1bn -6.3% 1.84% 1,191 1, (1.1) (2.1) (0.9) 60.8 FY 16 FY 17 Dec-16 Net Loans Securities Other items Core PPI Core PPI/Assets 1 Mainly including ( 93mn) VSS provision and ( 76mn) impairments on fixed assets 18

19 II NII impacted by the lower contribution from the asset side NII q-o-q evolution Net Loans balances & spreads (Group) ( million) bn -0.6% bn -3.2% (12) (1) 4.45% 4.39% 4.33% -6bps in spreads Q3 17 Loans Deposits Funding Bonds & other Q4 17 Dec-16 Sep-17 Net Loans Spreads pf IFRS 9 1 Reduction of Eurosystem funding cost Deposits balances (Group) ELA Funding Evolution bn +2.9% bn -16.7% 1.21% 1.13% 1.13% 1.13% 1.05% % 0.68% 0.67% 0.66% 0.70% Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Sep-17 Sep-17 New time depos rates Core Time Funding cost incl. Pillar II fees until Q Including 0.4bn net loans reclassified at FVPL (fair value through profit or loss) 19

20 II Fee generation increased mainly from asset gathering Net Fees & Commissions Income y-o-y Net Fees & Commission Income evolution y-o-y ( million) ( million) +2% % % 55.2 Investment Banking & Brokerage (2.2) (5.7) % Asset Gathering & Bancassurance Commercial Banking FY 16 FY 17 Dec-16 Asset Gathering & Bancassurance Investment Banking & Brokerage Loans Cards Other Commercial Banking Alpha Private Bank balances ( million) Asset Management balances ( million) Commercial Banking 4,352 4,341 1,582 2,601-16% 1, % 2, Dec-16 +7% Discretionary Advisory Execution Only 1, Dec % +2.5x 1, , Money Market Mutual Funds Non Money Market Mututal Funds Other AUM Fees & Commissions Income up by 2% y-o-y mainly due to higher revenues related to asset gathering and project finance related fees Alpha Private Bank balances stable y-o-y on the back of increased advisory and discretionary operations and despite reduced execution only operations Asset Management balances up by 26% y-o-y on the back of mutual fund inflows and higher market valuations 20

21 II Recurring OPEX down by 28.5mn y-o-y excl. remedial management costs Recurring Operating Expenses breakdown Recurring C/I ratio further improved ( million) Recurring OPEX Remedial Management costs Excl. Remedial 1,108 1, % mn -2.7% 1,044 1, % Depreciation & Amortisation G&As (excl. remedial management costs) Staff costs % % % 50.2% 48.2% 47.6% Employees evolution Branches evolution FY 2016 FY 2017 Greece -221 / SEE ,863-1% 11,727 8,888 8,667 2,975 3,060 Dec-16 Greece Abroad Greece -50 / Abroad % Progress to date: Cost to income ratio reduced to 47.6% for 2017 Staff costs reduced by 5.4% y-o-y, mainly on the back of savings arising from Voluntary Separation Scheme (VSS) implemented in % decrease of workforce since December % decrease of branches since December 2016 Continued operating efficiency enhancement through: Central functions optimization through process redesign and automation Migration of transactions to alternative channels through enhancement of digital offering and customer experience Dec-16 Greece Abroad Further reduction of third party spend through targeted initiatives 21

22 III. FY 17 Performance 1. Balance Sheet FY 2017 Results 22

23 III Balance Sheet composition Asset split Liabilities and equity split Cash Due from Banks Securities Cash Due from Banks ELA 7.0 ELA EFSF bonds 2.7 Securities ECB Due to Banks excl. ECB/ELA ECB Due to Banks excl. ECB/ELA 14.4 Time deposits 15.6 Time deposits Net loans 44.4 Net loans Core deposits 19.3 Core deposits PPE DTA PPE DTA Debt securities Equity Debt securities Equity Other 3.7 Other Other 2.5 Other Dec-16 Dec-16 Balance P&L Sheet P&L Asset Quality Liquidity Capital 23

24 III-2. Pre Provision Income FY 2017 Results 24

25 III PPI and NII breakdown Core PPI breakdown Lower contribution of loans to NII ( million) ( million) Bonds & other Loans Funding (51) (50) (51) (52) (54) (60) (51) (48) (41) (36) Depos Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Central Banks funding balances and funding cost (285) (263) (272) (280) (290) 1.21% 1.13% 1.13% 1.13% 1.05% Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Core Operating Income Recurring OPEX Core PPI Dec-16 Mar-17 Jun-17 Sep-17 ECB ELA Funding Cost incl. Pillar II fees Balance Sheet P&L Asset Quality Liquidity Capital 25

26 III Loan and deposit spreads Reduced net loan balances with declining spreads Deposit mix & cost evolution (bps) (bps) (65) (64) (64) (62) (61) % Total % End of quarter balances Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 End of quarter balances Q4 16 Q1 17 Q2 17 Q3 17 Q % Core deposits Time deposits Net Loans Group loans spread Group deposits spread Lending spreads (bps) Deposit spreads (bps) Consumer Credit - Greece Small Business Loans - Greece SEE (34) (34) (34) (33) (33) (80) (97) (98) (94) (92) Sight and Savings - Greece SE Europe Medium & Large Business - Greece Mortgages - Greece (102) (99) (99) (97) (96) Time Deposits - Greece Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Balance Sheet P&L Asset Quality Liquidity Capital 26

27 III Operating expenses million FY 2016 FY 2017 yoy % Staff costs (501) (474) (5.4%) Recurring OPEX Evolution ( million) General expenses (510) (531) 4.1% Depreciation and amortisation expenses (97) (100) 2.4% Recurring OPEX (1,108) (1,104) (0.4%) Integration costs (6) (9) Depreciation & amortisation expenses General expenses Extraordinary/one-off costs (111) (180) o/w VSS (32) (93) o/w fixed assets impairment (47) (76) Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Staff costs Total OPEX (1,225) (1,293) 5.5% Employees Branches Greece 9,570 9,687 8,888 8,900 8,903 8,820 8,667 Greece VSS Gr -2,208 Bulg -744 Hilton -323 Bulg ,202 FYROM -240 Serbia ,032 FYROM ,856 VSS Cy Serbia ,863 11,897 11,923 11,859 11, Dec-14 Dec-15 Dec-16 Mar-17 Jun-17 Sep-17 Dec-14 Dec-15 Dec-16 Mar-17 Jun-17 Sep-17 1 Includes corporate and private banking centers Balance Sheet P&L Asset Quality Liquidity Capital 27

28 III-3. Asset Quality FY 2017 Results 28

29 III 2018 Stress tests methodology, characteristics and timeline 2018 Stress Tests Methodology 2018 Stress Tests Timeline Greek Stress Tests run by the ECB Macro Assumptions announced Same EBA methodology as with the rest of the EU Banks Three years horizon st template submission Reference data of on static balance sheet basis with no events post this date to be considered nd template submission Phase-in of the IFRS 9 impact to capital adequacy ratios No pass/fail threshold; Two scenarios baseline & adverse rd and final template submission The exercise will assess all regulatory capital ratios including the Leverage Ratio Early May 2018 Results announced by ECB 2018 Stress Tests Macro assumptions Baseline scenario Adverse scenario Real GDP growth (%) HICP inflation (%) Unemployment rate (%) na na Residential property price growth (%) Commercial property price growth (%) Balance Sheet P&L Asset Quality Liquidity Capital 29

30 Consumer Credit Mortgages Business III Coverage of Group non performing loans 53% 128% Evolution of coverage for the Group NPL and write-offs 78% 78% 77% 77% 75% Group Write-offs 262mn 322mn 317mn 785mn 557mn 790mn 55% 122% 68% 69% 69% 69% 68% 67% Dec-16 Mar-17 Jun-17 Sep-17 Collateral Coverage Total NPL Coverage Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Collateral Coverage Total NPL Coverage 65% 117% Group NPLs & NPEs as of December % 48% 48% 48% 52% NPE ratio Dec-16 Mar-17 Jun-17 Sep-17 Collateral Coverage Total NPL Coverage 35% 112% Abroad Greece % 51.8% 51.7% NPL ratio 34.9% NPE Cash coverage NPL Cash coverage 38.4% 45% 67% % 73% % % 66% 84% 83% 85% 83% 77% NPEs NPLs Cash Coverage NPL Cash coverage for the Group at 67% or 122% with collateral coverage of 55% Dec-16 Mar-17 Jun-17 Sep-17 Collateral Coverage Total NPL Coverage Total coverage in all segments is well above the 100% mark Balance Sheet P&L Asset Quality Liquidity Capital 30

31 III NPL Workout Units Analysis Loans perimeter managed by NPL Units NPL Workout Units balances breakdown by segment Retail 16.8bn Wholesale 7.7bn 24.5 Performing Performing NPLs 16.6 Total Loans Greece Non-NPL Management Units 12.0 Retail NPL Management Unit WHL NPL Management Unit NPLs Mortgages Consumer SBLs SMEs Corporates Total Retail NPL Unit manages all retail exposures which are >1dpd and total 16.8bn In retail c. 2,900 FTEs broken down in WHL NPL Unit manages 7.7bn, out of which 3.3bn are performing loans 1 In wholesale c.146 FTEs broken down in (legal outsourcing excluded): c.650 in Retail NPL Unit Management & Monitoring: 41 FTEs c. 450 in branches Special Credit Division: 62 FTEs c.1,700 in collection and legal firms Permanent arrears Division: 39 FTEs 1 Including leasing, factoring and International Unit Greece Balance Sheet P&L Asset Quality Liquidity Capital 31

32 IIΙ Detailed overview of Alpha Bank s asset quality by portfolio Greece Wholesale SBL Mortgages Consumer Total Gross loans (-) Provisions (4.5) (2.0) (2.8) (1.7) (11.0) Net loans NPLs NPL ratio 22.8% 71.0% 34.6% 36.8% 34.3% NPEs NPE ratio 43.1% 83.9% 47.9% 59.7% 51.7% NPL collateral NPE collateral Coverage ratio Total Collateral Cash 154% 57% 97% 110% 117% 101% 95% 59% 52% 68% 53% 71% 106% 114% 78% 51% 49% 42% 49% 36% 36% 73% 25% 48% 123% 57% 66% 101% 57% 44% NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE NPLs (+) Forborne NPLs < 90 dpds (+) Individually impaired NPEs Forborne NPLs >90dpd Forborne NPLs <90dpd Performing forborne Total forborne Including unlikely to pay Balance Sheet P&L Asset Quality Liquidity Capital 32

33 IIΙ Detailed overview of Alpha Bank s asset quality by portfolio Group Wholesale SBL Mortgages Consumer Total Gross loans (-) Provisions (5.8) (2.1) (3.5) (1.9) (13.3) Net loans NPLs NPL ratio 25.8% 70.9% 34.9% 36.7% 34.9% NPEs NPE ratio 45.0% 83.7% 48.2% 58.4% 51.7% NPL collateral NPE collateral Coverage ratio Total Collateral Cash 145% 53% 92% 109% 117% 101% 95% 105% 56% 52% 53% 65% 67% 53% 49% 42% 52% 38% 112% 35% 77% 74% 26% 49% 122% 55% 67% 100% 55% 45% NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE NPLs (+) Forborne NPLs < 90 dpds (+) Individually impaired NPEs Forborne NPLs >90dpd Forborne NPLs <90dpd Performing forborne Total forborne Including unlikely to pay Balance Sheet P&L Asset Quality Liquidity Capital 33

34 III IFRS 9 loans stage analysis per segment - Greece Mortgages Consumer billion PE NPE IAS 39 Provisions IFRS 9 Provisions Δ Coverage % billion PE NPE IAS 39 Provisions IFRS 9 Provisions Δ Coverage % Stage (0.1) 0.1% Stage % Stage % Stage % Stage (0.1) 31.4% Stage % SBL Wholesale billion PE NPE IAS 39 Provisions IFRS 9 Provisions Δ Coverage % billion PE NPE IAS 39 Provisions IFRS 9 Provisions Δ Coverage % Stage (0.0) 0.7% Stage (0.0) 1.1% Stage % Stage % Stage % Stage % Balance Sheet P&L Asset Quality Liquidity Capital 34

35 III-4. Liquidity FY 2017 Results 35

36 III Deposits flow per quarter Alpha Bank deposits evolution in Greece Deposits breakdown December 2017 Q1: 0.0bn Q2: ( 0.1bn) Q3: 0.6bn Q4: 0.9bn (0.1) (0.2) Δ Time Core 59% Time 41% Δ Core Dec-16 Core Time Mar-17 Core Time Jun-17 Core Time Sep-17 Core Time Alpha Bank deposits evolution in Greece Deposits breakdown December (0.5) (0.3) (0.1) 29.3 Δ Individuals Δ Business Business 26% Individuals 74% Dec-16 Bus. Indiv. Mar-17 Bus. Indiv. Jun-17 Bus. Indiv. Sep-17 Bus. Indiv. Balance Sheet P&L Asset Quality Liquidity Capital 36

37 III-5. Capital FY 2017 Results 37

38 III Common Equity Tier I ratio at 18.3%; Fully Loaded CET1 ratio at 18.3%; Tangible Equity at 9.2bn Equity to regulatory capital bridge Group Risk Weighted Assets (RWAs) ( million) 15.2% Tangible book value / Tangible Assets 81% RWAs/ Assets 9,583 9,193 8, , (0.3) (0.1) (390) (199) Ordinary Equity Intangibles Tangible book value Regulatory Adjustments CET1 capital Lower Tier II Total CAD Sep-17 Credit Operational Market Credit Operational Market DTA and Tax Credit within CET1 ratio DTA (250% RWA) and Tax Credit (100% RWA) impact in RWAs CET 1 9.0bn 9.0bn RWAs 49.1bn 49.1bn (phased-in) (fully-loaded) (phased-in) (fully-loaded) Tax Credit Tax Losses Other DTA DTA Tax Credit Balance Sheet P&L Asset Quality Liquidity Capital 38

39 IV. Appendix FY 2017 Results 39

40 IV Business Volumes ( million) Dec 2017 Sep 2017 Jun 2017 Mar 2017 Dec 2016 % Dec 2017 / Dec 2016 Group Gross Loans 56,612 58,529 59,062 60,045 60,316 (6.1%) Mortgages 19,576 19,810 20,100 20,219 20,260 (3.4%) Consumer Loans 5,010 5,581 5,646 5,757 5,749 (12.9%) Credit Cards 1,628 1,666 1,585 1,634 1,676 (2.9%) Small Business Loans 5,892 6,404 6,487 6,648 6,640 (11.3%) Medium and Large Business Loans 24,507 25,069 25,244 25,787 25,991 (5.7%) of which: Greece 48,496 50,035 50,401 51,317 51,606 (6.0%) Mortgages 16,203 16,352 16,553 16,653 16,714 (3.1%) Consumer Loans 4,486 5,059 5,117 5,237 5,225 (14.1%) Credit Cards 1,593 1,631 1,547 1,596 1,638 (2.7%) Small Business Loans 5,823 6,335 6,419 6,581 6,573 (11.4%) Medium and Large Business Loans 20,391 20,657 20,765 21,250 21,456 (5.0%) of which: Shipping Loans 1,754 1,805 1,882 1,992 2,004 (12.5%) Southeastern Europe 7,822 8,210 8,385 8,446 8,448 (7.4%) Accumulated Provisions (13,294) (14,963) (15,277) (15,867) (15,907) (16.4%) Group Net Loans 43,318 43,567 43,785 44,178 44,409 (2.5%) Customer Assets 39,911 39,325 38,740 38,605 38, % of which: Group Deposits 34,890 33,900 33,141 33,090 32, % Sight & Savings 19,303 19,072 18,627 18,730 18, % Time deposits & Alpha Bank Bonds 15,587 14,828 14,513 14,359 14, % Greece 29,344 28,481 27,921 28,067 28, % Sight & Savings 17,434 17,242 16,912 17,144 17, % Time deposits & Alpha Bank Bonds 11,910 11,239 11,009 10,923 11, % Southeastern Europe 4,712 4,557 4,433 4,251 4, % Money Market Mutual Funds (38.6%) Other Mutual Funds 1,380 1,422 1,426 1,341 1, % Private Banking 3,277 3,524 3,639 3,597 3,518 (6.9%) 40

41 IV Breakdown of loans portfolio Group loans breakdown (Q4 17 data) Wholesale loans portfolio structure Group Mortgages 35% 56.6bn Wholesale loans 43% Services 6% Real Estate 8% Other 10% 24.0bn Industry 22% Credit Cards 3% Consumer loans 9% SBLs 10% Shipping 6% Tourism 8% Transportation 3% Construction 16% Trade 21% Shipping loans portfolio structure New disbursements in 2017 per business Loan portfolio duration: 5 years Dry Bulk 43% Handy max/ Handy size 23% Panamax 11% Capesize 9% 1.8bn VLCC 7% Passenger 9% Containers 10% Panamax 8% Aframax Suezmax 2% 6% Product Tankers 15% NPL ratio: 2% Tankers 38% Project finance 15% Wholesale 91% Shipping 10% Commercial Banking 28% SBL Consumer 2% 5% Mortgages 2% 2.1bn Corporate Banking 38% Retail 9% 41

42 IV Wealth Management evolution Alpha Private Bank balances ( million) Asset Management balances ( million) 4,352 4,341 4,107 1,582 1,323 2,219 1, ,601 2,782 1, , ,025 1, Dec-15 Dec Dec-15 Dec-16 Discretionary Advisory Execution Only Money Market Mutual Funds Other AUM Non Money Market Mututal Funds 42

43 IV SEE Operations 1 ( million) Cyprus Δ% Romania Δ% Albania Δ% TOTAL Δ% yoy yoy yoy yoy Deposits 2, % 2, % % 4, % Gross Loans 4,943 (6.9%) 2,551 (7.9%) 327 (11.0%) 7,822 (7.4%) Mortgages 2,233 (9.6%) 1, % 68 (1.5%) 3,352 (5.2%) Consumer Credit % 237 (2.7%) % % Businesses 2,440 (5.2%) 1,264 (17.6%) 232 (15.5%) 3,935 (10.2%) NPE ratio 77.8% 10.7% 22.8% NPE Cash coverage 2 57% 54% 32% NPE Total coverage 97% 129% 123% NPL ratio 58.3% 7.3% 11.7% NPL Cash coverage 72% 90% 69% NPL Total coverage 112% 162% 146% Total Operating Income (18.5%) (7.7%) 16.9 (16.0%) (13.6%) Operating Expenses (pre-o/h allocation) 1 (61.2) (27.2%) (96.3) 3.1% (16.5) 9.6% (174.0) (9.6%) Impairment Losses (174.0) (22.8%) (1.7) (5.4) (61.6%) (181.1) (33.8%) Profit Before Tax (pre- O/H allocation) (104.1) 31.9 (5.0) (77.2) Branches (1) Employees 671 1, , Country View 2 NPE Cash coverage pro-forma for IFRS 9 43

44 IV Alpha Bank Group ( million) FY 2017 FY 2016 yoy % change Net interest income 1, , % Net fee and commission income % Income from financial operations % Other Income (7.1%) Operating Income 2, , % Staff costs (473.6) (500.9) (5.4%) General expenses (530.7) (510.0) 4.1% Depreciation and amortization expenses (99.7) (97.4) 2.4% Operating expenses before integration and extraordinary costs (1,104.0) (1,108.3) (0.4%) Integration costs (9.4) (6.0) Extraordinary costs (179.6) (111.2) Operating expenses (1,293.0) (1,225.5) 5.5% Impairment losses on credit risk (1,005.4) (1,168.0) (13.9%) Profit / (Loss) before income tax (9.7) Income Tax (75.6) 29.2 Profit / (Loss) after income tax from continuing operations Profit / (Loss) after income tax from discontinued operations (68.5) 22.8 Profit / (Loss) attributable to shareholders Net interest income / average assets - MARGIN 3.1% 2.9% 44

45 IV Alpha Bank Group ( million) Q Q Q Q Q qoq% change yoy % change Net interest income (1.5%) (2.1%) Net fee and commission income % 1.9% Income from financial operations Other Income Operating Income (9.5%) (0.1%) Staff costs (119.9) (118.0) (119.4) (116.4) (125.1) 1.6% (4.2%) General expenses (144.3) (137.3) (128.2) (120.9) (134.9) 5.1% 7.0% Depreciation and amortization expenses (25.4) (24.4) (24.6) (25.4) (24.7) 4.1% 2.7% Recurring Operating expenses (289.5) (279.7) (272.2) (262.7) (284.6) 3.5% 1.7% Integration costs (3.7) (1.8) 3.0 (7.0) (3.9) Extraordinary costs (151.2) (7.4) (11.4) (9.6) (66.9) Total Operating expenses (444.4) (288.8) (280.6) (279.2) (355.5) 53.9% 25.0% Impairment losses (243.7) (298.3) (216.6) (246.8) (303.9) (18.3%) (19.8%) Profit / (Loss) before income tax (86.8) (57.1) Income Tax 22.7 (41.6) (28.7) (28.0) 61.8 Profit / (Loss) after income tax from continuing operations (64.0) Profit / (Loss) after income tax from discontinued operations (69.4) Profit / (Loss) attributable to shareholders (64.0) Net interest Margin (NIM) 3.1% 3.1% 3.1% 3.0% 3.0% 45

46 IV Group Results by Business Unit ( million) Retail Commercial & Corporate SE Europe Investment Banking & Treasury Asset Management Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Other Group Operating Income 1, , , ,383.7 Net Interest Income , (38.3) , ,924.1 Net fee and Commission Income Income from Financial Operations (33.9) (21.9) Other Income (3.7) (2.9) Operating Expenses 1 (670.0) (664.3) (174.5) (153.5) (187.9) (213.9) (29.9) (29.7) (31.1) (26.7) (199.6) (137.4) (1,293.0) (1,225.5) Staff Costs 1 (269.0) (279.8) (86.1) (87.2) (82.6) (116.3) (12.5) (13.0) (17.2) (16.5) (99.7) (26.6) (567.1) (539.5) General Expenses (346.5) (331.1) (65.9) (46.1) (96.0) (87.2) (15.0) (14.6) (11.5) (8.6) (91.2) (101.0) (626.2) (588.5) Depreciation (54.5) (53.4) (22.5) (20.2) (9.4) (10.3) (2.3) (2.1) (2.3) (1.6) (8.6) (9.8) (99.7) (97.4) Impairment Losses (886.5) (352.2) 62.2 (536.4) (181.1) (273.8) (5.6) (1,005.4) (1,168.0) Profit / (Loss) before tax (486.7) (91.1) (165.8) (145.7) (119.8) (9.7) 1 Including VSS provision of 93mn in Q

47 IV Results I Retail Business Unit ( million) Q Q Q Q Q Operating Income Net Interest Income Net fee and Commission Income Income from Financial Operations Other Income Operating Expenses (174.4) (170.6) (166.4) (158.7) (170.8) Staff Costs (66.6) (66.9) (68.6) (67.0) (70.1) General Expenses (94.0) (89.9) (84.3) (78.2) (87.2) Depreciation (13.8) (13.8) (13.5) (13.4) (13.5) Impairment losses (218.2) (232.0) (304.2) (132.1) (21.5) Profit / (Loss) before tax (129.1) (135.7) (200.7) (21.2) 84.3 RWA e 20,065 20,254 20,090 20,053 20,108 47

48 IV Results I Commercial & Corporate Business Unit ( million) Q Q Q Q Q Operating Income Net Interest Income Net fee and Commission Income Income from Financial Operations (36.1) Other Income Operating Expenses (50.9) (43.6) (40.9) (39.2) (39.7) Staff Costs (21.6) (21.4) (21.7) (21.4) (22.1) General Expenses (23.1) (17.0) (13.3) (12.6) (12.4) Depreciation (6.2) (5.2) (5.9) (5.3) (5.3) Impairment losses 50.7 (46.8) (78.4) (124.8) Profit / (Loss) before tax RWA e 18,208 18,120 18,381 18,378 18,063 48

49 IV Results I Asset Management Business Unit ( million) Q Q Q Q Q Operating Income Net Interest Income Net fee and Commission Income Income from Financial Operations Other Income (3.3) 0.3 (0.7) 0.0 (1.1) Operating Expenses (8.3) (7.8) (7.4) (7.6) (6.8) Staff Costs (4.6) (4.2) (4.3) (4.1) (4.0) General Expenses (3.0) (3.1) (2.9) (2.5) (2.5) Depreciation (0.7) (0.6) (0.1) (1.0) (0.4) Impairment losses Profit / (Loss) before tax RWA e

50 IV Results I Investment Banking & Treasury Business Unit ( million) Q Q Q Q Q Operating Income Net Interest Income Net fee and Commission Income Income from Financial Operations Other Income (0.1) Operating Expenses (8.6) (7.2) (7.1) (7.0) (7.8) Staff Costs (3.6) (2.9) (3.1) (2.9) (3.4) General Expenses (4.3) (3.7) (3.5) (3.5) (3.9) Depreciation (0.7) (0.6) (0.6) (0.6) (0.5) Impairment losses Profit / (Loss) before tax RWA e 4,004 3,955 4,226 4,684 4,891 50

51 IV Results I SE Europe Business Unit ( million) Q Q Q Q Q Operating Income Net Interest Income Net fee and Commission Income Income from Financial Operations Other Income Operating Expenses (57.7) (44.8) (43.9) (41.6) (49.2) Staff Costs (22.4) (20.6) (20.1) (19.4) (19.9) General Expenses (33.0) (21.9) (21.4) (19.6) (26.5) Depreciation (2.3) (2.2) (2.4) (2.5) (2.7) Impairment losses (76.3) (19.4) (49.1) (36.3) (152.0) Profit / (Loss) before tax 1 (66.0) 4.0 (21.4) (7.8) (127.9) RWA e 4,986 5,123 5,387 5,904 6,223 51

52 IV Results I Other Business Unit ( million) Q Q Q Q Q Operating Income (6.2) 5.8 (22.2) Net Interest Income Net fee and Commission Income (0.3) (0.3) Income from Financial Operations (12.2) 0.0 (31.9) Other Income Operating Expenses 1 (144.5) (14.8) (15.1) (25.2) (81.1) Staff Costs 1 (93.7) (1.9) (1.7) (2.3) (10.2) General Expenses (49.0) (10.8) (11.2) (20.3) (68.7) Depreciation (1.8) (2.1) (2.2) (2.6) (2.3) Impairment losses (5.6) Profit / (Loss) before tax (131.1) 26.1 (21.3) (19.4) (108.9) RWA e 1,572 1,431 1,297 1,102 1,109 1 Including VSS provision of 93mn in Q

53 IV Glossary 1 Terms Definitions Abbreviation Accumulated Provisions or Loan Loss Reserve Accumulated Impairment Allowance, as disclosed for credit risk monitoring purposes (note 41) 2 Core Operating Income Operating Income (5) less Income from financial operations 3 Gross Loans Total gross amount of Loans and Advances to Customers, as disclosed for credit risk monitoring purposes (note 41) 4 Reconciliation of key Management s definitions with terms in Annual report (In accordance with Law 3556/2007) Impairment losses or Loan Loss Provisions Impairment losses and provisions to cover credit risk 5 Operating Income Total income plus Share of profit/(loss) of associates and joint ventures 6 Recurring Operating Expenses Total Operating Expenses (7) less Integration, Extraordinary Costs and One-Offs 7 Total Operating Expenses Total expenses Total OPEX Alternative Performance Measures Definitions Abbreviation Common Equity Tier 1 ratio (Fully-loaded) Common Equity Tier 1 ratio (Phased-in) Common Equity Tier 1 regulatory capital as defined by Regulation No 575/2013 (Full implementation of Basel 3), divided by total Risk Weighted Assets (RWAs) Common Equity Tier 1 regulatory capital as defined by Regulation No 575/2013, as amended, based on the transitional rules, divided by total Risk Weighted Assets 53 LLR LLPs Recurring OPEX FL CET 1 ratio Core Pre-Provision Income Core Operating Income (2) for the period less Recurring Operating Expenses (6) for the period Core PPI Cost of Risk Impairment losses (4) for the period divided by the average Gross Loans (3) of the relevant period CoR Consist of the amounts of income taxes recoverable in future periods in respect of deductible temporary differences, the carryforward of unused Deferred Tax Assets tax losses and the carryforward of unused tax credits The amounts of DTAs that are eligible for conversion into tax credits in specific situations, such as the occurrence of accounting losses Deferred Tax Credit (conversion by the proportion of losses vs. total equity), liquidation or insolvency of the credit institution (conversion of all eligible assets) Forborne exposures are debt contracts in respect of which forbearance measures have been extended. Forbearance measures consist of Forborne Exposures concessions towards a debtor facing or about to face difficulties in meeting its financial commitments ( financial difficulties ) Forborne non-performing exposures comprise the following: a) Exposures that are classified as non-performing due to the extension of forbearance measures b) Exposures that were non-performing prior to the extension of forbearance measures c) Forborne exposures which Forborne Non Performing loans (under EBA) have been reclassified from the forborne performing category, either due to the extension of additional forbearance measures or due to becoming more than 30 days past-due Loan Loss Reserves over Loans Accumulated Provisions (1) divided by Gross Loans (4) at the end of the reported period CET1 ratio Loan to Deposit ratio Net Loans divided by Deposits at the end of the reported period LDR or L/D ratio Net Interest Margin Net Interest Income for the period, annualised and divided by the average Total Assets of the relevant period NIM Net Loans Non Performing Exposures Non Performing Exposure Coverage Gross Loans (3) at the end of the period less Accumulated Provisions (1) at the end of the period Non-performing exposures are those that satisfy either or both of the following criteria: a)exposures which are more than 90 days past-due b)the debtor is assessed as unlikely to pay its credit obligations in full without realisation of collateral, regardless of the existence of any pastdue amount or of the number of days past due Accumulated Provisions (1) divided by Non Performing Exposures (NPEs) at the end of the reference period DTA DTC Forborne FNPEs NPEs NPE (cash) coverage Non Performing Exposure ratio Non Performing Exposures (NPEs) divided by Gross Loans (3) at the end of the reference period NPE ratio

54 IV Glossary Alternative Performance Measures Definitions Abbreviation Non Performing Exposure Total Coverage Accumulated Provisions (1) including the value of the associated collaterals divided by Non Performing Exposures (NPEs) at the end of the reported period NPE Total coverage Non Performing Loans (under EBA) Τhe part of the Non Performing Exposures (under EBA) that are not classified as Forborne EBA NPLs Non Performing Loans (under IFRS) Non Performing Loan Coverage Non Performing Loans (under IFRS) are considered those if one of the following conditions apply: a) Exposures which are more than 90 days past-due b) Exposures under Legal actions Accumulated Provisions (1) divided by Non Performing Loans (under IFRS) at the end of the reference period NPLs NPL (cash) Coverage Non Performing Loan ratio Non Performing Loans (under IFRS) divided by Gross Loans (3) at the end of the reference period NPL ratio Non Performing Loan Total Coverage Overall Capital Requirement Accumulated Provisions (1) including the value of the associated collaterals divided by Non Performing Loans (under IFRS) at the end of the reference period OCR includes in addition to the Total SREP Capital Requirements (TSCR) the combined buffers requirements (CBR) defined in point (6) of Article 128 of Directive 2013/36/EU as applicable Property Plant Equipment Definition as per financial statements PPE Pre-Provision Income Operating Income (5) for the period less Total Operating Expenses (7) for the period PPI Recurring Cost to Income ratio Recurring Operating Expenses (6) for the period divided by Core Operating Income (2) for the period C/I ratio Remedial management costs Risk Weighted Assets Stage 1 Stage 2 Stage 3 Tangible Book Value per share Operating costs related to NPL management initiatives (e.g. collection costs, legal costs etc) Risk-weighted assets are the bank s assets and off-balance sheet exposures, weighted according to risk factors based on Regulation (EU) No 575/2013, taking into account credit, market and operational risk At initial recognition of a loan, provision is measured based on 12 months Expected Credit Losses. Stage 1 includes exposures that do not have a significant increase in credit risk since initial recognition. Stage 1 also includes exposures for which credit risk has improved and the loan has been reclassified from Stages 2 or 3 If a loan has a significant increase in credit risk since initial recognition and is not classified as Non Performing Exposure, the Bank will measure Expected Credit Losses over its lifetime. Stage 2 also includes exposures for which credit risk has improved and the loan has been reclassified from Stage 3 Includes credit impaired exposures. In this stage, lifetime Expected Credit Loss are recognised Tangible Book Value per share is the Total Equity attributable to shareholders excluding Goodwill and other intangible assets, minorities, hybrids and preference shares divided by the outstanding number of shares NPL Total Coverage OCR RWAs TBV/share Total Capital Adequacy Ratio Total regulatory capital divided by total Risk Weighted Assets (RWAs), as defined by Regulation No 575/2013 Total CAD Tangible Equity or Tangible Book Value Tangible Equity is the Total Equity attributable to shareholders excluding goodwill, intangibles, minorities, hybrids, preference shares TE or TBV Total Supervisory Review & Evaluation Process Capital Requirement Unlikely to pay (under EBA) TSCR is composed of the minimum total own fund requirements (8%) and the additional Pillar 2 Requirement (P2R), according to article 16(2) (a) of the Regulation 1024/2013/EU The debtor is assessed as unlikely to pay its credit obligations in full without realisation of collateral, regardless of the existence of any past-due amount or of the number of days past due (Article 178(3) of Regulation (EU) 575/2013) TSCR UtP 54