National Bank of Greece Q2.2014 Results August 28 th, 2014
Q2.2014 Results: Highlights
National Bank of Greece Results Result Highlights CET1 ratio increases 16.2% post 2.5bn capital increase Group PAT at 965m, H1.14 at 1.1bn Excluding one offs, PAT at 74m, 7 th consecutive profitable quarter Operating profit at 48m, as Group Core Income strengthens further (+2%qoq) Group NIM (+8bps qoq at 325bps) improves in Greece and Turkey Group cost cutting is impressive (H1.14: -12% yoy) 90dpd formation in Greece on a decelerating trend (-16% qoq) Allows a reduction in Group credit risk charges to 223bps Finansbank s profitability surges upwards, bouncing back from lows PAT at TL246m (+28% qoq) and +159% vs Best in class liquidity position (domestic L:D at 83%) Net 1 ECB funding lowered to just 4.4% of assets NBG set to fund the recovery of the Greek economy Already 0.4bn disbursed in 1: Excluding EFSF Bonds page 3
Q2.2014 Results: The Greek Economy
Q3.01 Q3.02 Q3.03 Q3.04 Q3.05 Q3.06 Q3.07 Q3.08 Q3.09 Q3.10 Q3.11 Q3.12 May-07 Dec-07 Jul-08 Feb-09 Sep-09 Apr-10 Nov-10 Jun-11 Jan-12 Aug-12 Mar-13 Oct-13 May-14 Q1.05 Q1.06 Q1.07 Q1.08 Q1.09 Q1.10 Q1.11 Q1.12 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Macroeconomic environment National Bank of Greece Results Economy exits recession, competitiveness increases + sovereign risk subsides rapidly GDP growth and economic sentiment indicator Greek 10-year Gov.bond spread over bund 10 5 0-5 -10 140 120 100 80 60 40 +2.0% q-o-q annualized in Q2:2014 35 30 25 20 15 10 5 0 % GDP, q-o-q (s.a., annualized, left axis) GDP, y-o-y (left axis) ESI NBG weights (right axis) 10y government bond spread over bund Unit labour cost Labor market shows tentative sings of stabilization 140 135 130 125 120 115 110 105 100 95 90 Index, 2001=100 140 135 130 125 120 115 110 105 100 95 90 4 2 0-2 -4-6 -8-10 -12 % 30 25 20 15 10 5 0 Employment growth (left axis) Greece Euro area Source: ELSTAT, ECB, EU Commission, Bloomberg Unemployment rate (right axis) page 5
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014f Jan-07 Aug-07 Mar-08 Oct-08 May-09 Dec-09 Jul-10 Feb-11 Sep-11 Apr-12 Nov-12 Jun-13 Jan-14 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2006 2007 2008 2009 2010 2011 2012 2013 2014f Macroeconomic environment National Bank of Greece Results Fiscal consolidation and external adjustment continue unabated Greece State budget primary balance (% GDP) General government fiscal balances 3 1 % of GDP* 3 1 10 5 % of GDP 10 5-1 -3-5 -7-9 * 2013-14 excluding SMP and ANFA revenue -1-3 -5-7 -9 0-5 -10-15 -20 0-5 -10-15 -20 Primary balance 2009 2010 2011 2012 2013 2014 Cyclically adusted primary balance Total Balance Current account balance (% GDP) Goods exports & tourism revenue (y-o-y) 5 0 % of GDP 5 0 30 20 % 30 20-5 -5 10 10-10 -10 0 0-15 -15-10 -10-20 -20-20 -20 Greece Euro area Goods exports excl. oil & ships (y-o-y, 12m ma) Tourism revenue, gross (y-o-y, 12m ma) Source: IMF, Bank of Greece, Ministry of Finance page 6
Q2.2014 Results
Highlights National Bank of Greece Results Group PPI absorbs CoR, yielding consistently positive operating results Pre-Provision Earnings Highlights Q2 Group PPI of 390m absorbs declining credit risk charges of 342m (-5% qoq), producing a positive operating profit ( 48m) for the 4 th quarter since Q2 core income (+2% qoq) reflects recovering NII and Fee income (+1% qoq, +6% qoq), despite sustained deleveraging in Greece Group NIM (+8bps qoq) reflects positive NIM dynamics in Greece and Turkey Impressive cost containment in Greece (-16% yoy) drives H1.14 Group OpEx down by 12% yoy Group credit risk charges are reduced by 17% yoy and 5% qoq, reflecting the sustained deceleration in 90dpd formation Q2 Group PAT of 965mn, benefits from additional off balance sheet DTA recognition, bringing NBG closer to domestic peer practice Finansbank s recovery accelerates in Q2, bouncing back strongly from the trough levels of : Core PPI: +18% qoq PAT: +28% qoq (TL 246m) SEE produces a quarterly PAT of 15m (+8% qoq) Consolidated P&L Account mn H1.14 H1.13 yoy% qoq% NII 1 511 1 609-6% 760 751 +1% Net fees 266 279-5% 137 129 +6% Insurance income 37 32 +14% 17 20-15% Trading & other income 24 24 +0% (20) 44 - Income 1 838 1 945-5% 894 944-5% Operating Expenses (1 010) (1 153) -12% (504) (506) -0% Pre-Provision Income 828 792 +5% 390 438-11% Loan Provision Charges (705) (853) -17% (342) (362) -5% Operating Profit 123 (61) - 48 76-37% Impairments & other one-offs 1 023 471 >100% 885 138 >100% Taxes 26 (52) - 46 (20) - Minorities & non cash chrg (27) (14) +88% (14) (13) +8% Attributable PAT 1 146 343 >100% 965 181 >100% page 8
Highlights National Bank of Greece Results NPL formation decelerates, liquidity improves, capital adequacy strengthens Domestic Asset Quality Liquidity Capital Pre-Provision Earnings The reduction in the formation of domestic past due loans gathers pace in dropping 16% qoq to 262m, to about 1/4 th the peak levels of 2012 domestic provisioning charges are reduced further with CoR declining at 264bps vs 270bps in. Domestic cash coverage of 90dpd loans at 56% Eurosystem exposure slashed by 7bn in and 9.7bn ytd, to comprise just 4.1% of Group assets on a net basis* L:D at 83% domestically, and 94% for the Group, driven by strong deposit gathering in key regions: Greece +13% yoy, Turkey +7% yoy CET I ratio at 16.2% benefits from Q2 profitability, additional DTA recognition and the 2.5bn capital increase completed in May. Pro forma for fully loaded BS-III / CRD4 CET ratio stands at 11.4%* *: exposure to Eurosystem and total assets net of EFSF bonds *: includes BoGapproved capital actions and IRB on Finansbank +1.200 +1.031 Domestic: +90dpd flows 117% 115% Group & Domestic L:D CET I 16.2% +800 +400 +1.028 +90dpd formation +487-16% qoq +457 +378 +382 +332 +312 +262 112% 109% 108% 105% 102% 101% 96% 93% 97% 97% 93% 94% CT I CET I 10.3% 10.5% RWAs: 58.4bn 88% 90% 84% 83% +0 FY.13 Q2.12 Q3.12 Q4.12 Q2.12 Q3.12 Q4.12 page 9
Results National Bank of Greece Results Group NIM rebounds aided by recovery in key geographies: Greece +8bps qoq, Turkey +12bps qoq Pre-Provision Group Earnings Income Group Net Interest Margin & NII mn H1.14 H1.13 yoy% qoq% Group NIM - bps Group NII qoq breakdown ( mn) NII 1 511 1 609-6% 760 +1% Net fees 266 279-5% 137 +6% Insurance income 37 32 +14% 17-15% Core income 1 814 1 921-6% 914 +2% Non core income 24 24 +0% (20) - Total Group Income 1 838 1 945-5% 894-5% 400 359 364 370 346 340 325 326 325 317 310 Q4.12 mn qoq Greece 414 418-1% Turkey 269 254 +6% SEE & Int l 76 79-3% Group NII 760 751 +1% Greece: NII & NIM Turkey: NII & NIM SEE: NII & NIM NII ( mn) NIM (bps) 365 388 393 413 418 414 252 260 251 260 266 274 NII (TL mn) 903 788 794 787 770 777 NII ( mn) 336 376 303 284 254 269 NIM (bps) 721 643 LT avg 580bps 591 556 520 532 NII ( mn) 62 62 62 66 67 68 NIM (bps) 322 314 312 332 354 345 page 10
Q2.10 Q2.11 Q2.12 Q2.10 Q2.11 Q2.12 Results National Bank of Greece Results Impressive Group cost containment (-12% yoy) is led by domestic cost cutting (-16% yoy) Group Operating Expenses Greece mn H1.14 H1.13 yoy% qoq% Greece 518 614-16% 262 +2% Personnel expenses 338 412-18% 169 +0% G&A s 130 147-12% 67 +5% Depreciation 50 55-8% 26 +7% due to advertising 300 250 200 150 Personnel expenses - mn 275 247 231-39% vs Q2.10 205 169 160 140 120 100 80 60 G&As & Depreciation - mn -17% vs Q2.10 112 101 96 93 93 Turkey 370 413-10% 180-5% 100 40 SEE & other 122 126-4% 62 +2% Group Opex 1 010 1 153-12% 504-0% 50 20 0 mn H1.14 H1.13 yoy% qoq% Personnel exp. 554 656-16% 278 +1% G&As 358 393-9% 175-5% 80% Domestic C:I ratio 79% -24% pps yoy 80% Group C:I ratio -4% pps yoy Depreciation 98 104-6% 51 +9% Group Opex. 1 010 1 153-12% 504-0% 70% 60% 50% 55% 70% 60% 50% 59% 55% 40% 40% H1.13 H1.14 H1.13 H1.14 page 11
Results National Bank of Greece Results 90dpd formation decelerates across all regions: Greece, Turkey and SEE +90dpd Evolution +90dpd flows & CoR 23% 21% 19% 17% 16,5% Group: +90dpd 19,0% 18,2% 20,8% 19,8% +20bps qoq 21,9% 22,5% 23,0% 23,2% Coverage at 56% 32% 29% 26% 23% 20% Greece: +90dpd 23,1% 21,9% 19,3% 24,3% +60bps qoq adjusted for deleveraging impact 28,4% 29,3% 27,4% 25,9% 27,1% Coverage at 56% +1.600 +1.200 +800 +400 Group: +90dpd flows +1.244 +1.162 +662 +617 +563 flows -46% yoy +476 +403 +380 +304 15% Q2.12 Q3.12 Q4.12 17% Q2.12 Q3.12 Q4.12 +0 Q2.12 Q3.12 Q4.12 7% Turkey: +90dpd SEE: +90dpd 28% 600 Group Cost of Risk- bps 6% 5% 4% 5,5% 5,2% 5,8% 5,2% Incl. TL 0.5bn NPL sale 5,4% 6,1% 6,0% 90dpd ratio benefits from the TL 0.7bn retail NPL portfolio sale in May 5,5% 26% 24% 23,1% 23,3%24,1% 22% 24,4% 24,6% 23,9% 24,8% 24,4% 500 400 300 200 418 271 271 247 250 236 223 3% Q3.12 Q4.12 20% Q3.12 Q4.12 100 Q3.12 page 12
Results National Bank of Greece Results Strong liquidity profile: net Eurosystem exposure at just 4% over assets, domestic L:D at 83% Loans / Deposits Eurosystem Funding ( bn) Greece: Deposits Evolution Group 117% 115% 112% 112% 109% 106% Greece 108% 105%102% 101% 96% 93% 97% 97% 88% 90% 93% 94% 84% 83% 33 30,9 100% ELA 27,5 25,5 100% ECB 22,2 20,7 18,0 Net ECB exposure / Assets at 4.4%* 11,0 mn qoq yoy Savings 15 588 15 414 +1% +2% Sight 6 873 6 365 +8% +21% Time deposits 21 915 21 943-0% +12% Customer deposits 44 376 43 722 +2% +10% State & Public entities 1 580 2 178-27% >100% Total 45 956 45 900 +0% +13% Q1.12 Q2.12 Q3.12 Q4.12 Q3.12 Q4.12 (*) excl. EFSF bonds Eurosystem funding and Total Assets Greece: Deposits SEE: Deposits Turkey: Deposits 38,9 40,1 40,6 45,1 43,7 45,9 Greece: 46.0bn +13% yoy 5,1 5,2 5,3 5,6 5,5 5,4 SEE: 5.4bn +1% yoy TL retail bonds 32.8 35.1 36.6 37.3 40.4 TL 37.7bn + 7%yoy Q4.12 Q4.12 page 13
National Bank of Greece Results NBG CET1 Ratio under CRD4 rules at 16.2% in NBG Capital Position Well Capitalized in European Context Basel III 1 Fully Loaded CET1 Ratio (Pro forma) Peer 3 Peer 1 10.5% 16.2% +570bps qoq 11.4% Excludes longer term capital actions executable until 2018 Peer 10 NBG Pro Forma Peer 15 Peer 2 Peer 4 Peer 7 11.4% Peer 6 Buffer Above 8% Peer 8 Peer 12 Peer 5 Peer 9 Peer 14 CRD IV CET I CRD IV CET I Pro Forma Basel 3 Fully Loaded CET1* Peer 13 Peer 11 Median: 10.5% *: includes only the BoG approved capital actions and IRB on Finansbank 1: all data A, except for domestic peers () page 14
National Bank of Greece Q2.2014 Results: Greece
Segment review: Greece National Bank of Greece Results PAT at 871mn and H1.14 PPI up 2.6x yoy Pre-Provision Earnings Highlights Domestic PAT of 871m, benefits from additional off balance sheet DTA recognition H1.14 pre provision income of 419m, up by 2.6x yoy is driven by strong performance in: NII (+11% yoy) on the back of lower funding costs Fee income recovery (+51% yoy) Impressive cost containment of (-16% yoy), driven by personnel cost cuts (-18% yoy) Further credit risk charge normalization (H1.14: -18% yoy, : -4% qoq) reflects abating 90dpd formation levels Business lending volumes start to pick up: net disbursements of 194m in June Domestic liquidity profile is further reinforced: Eurosystem funding is reduced further in by 7bn to 11bn, comprising just 4.4% of assets on a net basis (excl. EFSF notes) Private deposits (excl. State) are up by 10% yoy and 1.5% qoq L:D at an advantageous 83%, is set to aid economic recovery going forward P&L Account mn H1.14 H1.13 yoy% qoq% NII 832 753 +11% 414 418-1% Net fees 25 17 +51% 11 14-21% Insurance income 37 32 +13% 17 20-16% Core Income 894 802 +12% 442 452-2% Trading & other income 43 (28) - (2) 45 - Income 937 774 +21% 440 497-12% Wages & Salaries (338) (412) -18% (169) (169) +0% G&As & Depreciation (180) (202) -11% (93) (87) +6% Operating Expenses (518) (614) -16% (262) (257) +2% Pre-Provision Income 419 160 >100% 179 241-26% Loan Provision charges (517) (633) -18% (253) (264) -4% Operating Profit (98) (473) -79% (74) (23) >100% Impairments & other one-offs 1 031 471 >100% 890 141 >100% Taxes 67 19 >100% 68 (1) - Minorities & non-cash charges (27) (12) >100% (14) (13) +8% Attributable PAT 975 5 >100% 871 104 >100% Highly successful 5yr bond issue in April: 750mn senior unsecured Priced through the sovereign at a yield of 4.5% page 16
FY.12 Apr14 May14 Jun14 FY.12 Segment review: Greece National Bank of Greece Results Business lending volumes start to pick up in June as net disbursements reach 194mn Domestic Loan Book Domestic Mortgages* Domestic Consumer Lending* Gross Balances ( bn) 6,3 6,3 6,3 6,3 6,2 6,1 44,7 44,3 44,7 46,5 46,5 46,0 45,5 +2% yoy 18,6 18,8 18,5 18,4 18,2-2.1% yoy -2.0% yoy (*) Gross balances (*) Gross balances Domestic Business Lending Net Balances ( bn) 39,1 38,6 38,3 39,7 39,3 38,7 38,0-2% yoy Corporate Lending (>2.5mn)* 16,2 17,1 17,3 17,2 16,9 16,8 17,0 Net funding of + 194mn mom to large corporate and shipping companies +4.7% yoy 3,7 SBLs ( bn)* 4,3 4,3 4,2 4,2 +14.1% yoy (*) Gross balances (*) Gross balances page 17
Q1.12 Q2.12 Q3.12 Q4.12 May13 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Dec13 Jan14 Feb14 Mar14 Apr14 May 14 Jun 14 Jul 14 Segment review: Greece National Bank of Greece Results Time deposit repricing continues unabated, while corporate spreads stabilize Domestic Spreads Domestic Net Interest Income Lending Spreads (match-maturity; bps) NII Breakdown (match-maturity; mn) qoq Mortgages 226 233-7 Consumer loans 923 925-2 SBLs 652 662-10 Total retail 369 379-10 Corporate lending 409 409 0 Total lending 385 392-7 Deposit Spreads (match-maturity; bps) qoq Core deposits -12-12 0 Time -203-229 +26 mn qoq Core deposits -7-6 -1 Term deposits -128-141 +13 Deposit NII -134-148 +14 Retail loans 208 210-2 Corporate loans 177 173 +4 Lending NII 385 383 +2 Bonds 45 55-10 Eurosystem funding -1-3 +2 Funding gap 56 62-6 Subsidiaries & Other 65 70-5 Domestic NII 414 418-4 Funding mix ( bn) Further de-escalation of time deposit spreads NBG Term Deposits: New Production Spreads Total deposits -115-129 +14 Domestic deposits ECB Funding ELA 4,0% 80 60 40 7 11 25 24 24 9 31 3 6 25 20 0 0 0 22 21 18 0 11 3,0% 2,0% 20bps below backbook spreads 20 40 37 37 39 40 41 45 44 46 46 0 1,0% page 18
National Bank of Greece Q2.2014 Results: Turkey
Segment review: Turkey Profit recovery continues in National Bank of Greece Results Highlights Profit & Loss Account P&L account Profitability accelerates further in as PAT reaches TL 246m relative to TL 192m in (+28% qoq) and TL95m in Pre provision earnings, adjusted for trading losses of TL45m in, grow 18% qoq driven by core income recovery and impressive cost containment Core income keeps recovering (+2% qoq) as NII increases by +1% qoq in and fees grow by an impressive +7% qoq OpEx growth decelerates on the back of FTE reduction Provision charges down by 13% qoq on improving 90dpd formation; coverage at 68% Liquidity profile is solid: Deposits +7% yoy, driven by growth in low cost current accounts (+17% yoy), comprising 14% of total deposits Eurobond issuance of USD 500mn in April was met by high international investor demand Best in class capital adequacy at 16.5% TL mn H1.14 H1.13 yoy% qoq% Net interest income 1 547 1 691-8% 777 +1% Net fees 579 521 +11% 299 +7% Trading & other income (67) 92 - (58) >100% Income 2 059 2 303-11% 1 018-2% Operating expenses (1 101) (980) +12% (521) -10% Pre-provision income 959 1 323-28% 497 +8% Provisions (407) (360) +13% (190) -13% Operating Profit 551 963-43% 307 +26% Income tax (112) (170) -34% (60) +16% Minority (2) (2) +11 (1) >100% Attributable PAT 438 791-45% 246 +28% Highly successful Eurobond issuance in April 2014: Raised USD 500mn, with 5 years maturity Fixed coupon rate, 6.25% p.a. Oversubscribed c.3x page 20
Segment review: Turkey National Bank of Greece Results Core PPI is up +18% qoq, driven by core income recovery and impressive cost containment NII and NIM Yields Net Interest Margin (bps) Net Interest Income (TL mn) Key Product Yields (bps) 800 700 600 500 721 643 591 556 520 532 +12bps qoq 900 800 700 600 500 400 TL 777mn +1% qoq -14% TL time deposit yield below 9% in Q3.14 qoq TL Mortgages 1 032 1 045-13 1 070 TL Credit Cards 2 458 2 461-3 2 362 TL Consumer lending 1 795 1 819-24 1 860 TL SME lending 1 500 1 411 +89 1 408 400 300 200 TL Time Deposits 1081 993 +88 873 FC Time Deposits 228 276-48 312 Fees Operating Expenses Net Fees (TL mn) Breakdown 300 TL 299mn +7% qoq TL mn qoq yoy Wages & Salaries 224 235-5% 232-3% 200 G&A 242 295-18% 249-2% Depreciation 55 49 +13% 43 +28% 100 Total OpEx 521 579-10% 524-0% qoq yoy 0 FTEs 14 931 15 243-312 14 261 +670 Branches 673 674-1 623 +50 page 21
Segment review: Turkey National Bank of Greece Results Sustained business model shift towards SMEs: business balances exceed 50% of loans Gross Loans (TL bn) Retail Lending (TL bn) Business Lending (TL bn) 43,7 45,2 47,7 48,0 50,7 50.5bn 50,5 +12% yoy 25,9 26,0 26,1 26,0 25,7 24.8bn -5% yoy -4% qoq 17,8 19,2 21,6 22,0 25,0 25.8bn +34% yoy +3% qoq Total Deposits (TL bn) Demand deposits (TL bn) Branches TL retail bonds 32.8 35.1 36.6 37.3 40.4 TL 37.7bn + 7% yoy 3,7 4,4 4,4 +67% 5,4 +17% yoy 4,9 14% 5.2bn % of total deposit pool Average branch age (years) Share of branches aged <5 years Young branch network Finansbank Peer 1 Peer 2 Peer 3 Peer 4 7.3 12.4 23.6 21.0 28.7 32% 29% 23% 17% 21% Deposits per branch (TRY mn) 56 105 98 95 90 Source: The Banks Association of Turkey page 22
Segment review: Turkey National Bank of Greece Results CoR reduces further as 90dpd formation levels improve in NPL Formation Provision Coverage 5,5% 5,8% 5,2% 5,4% 6,1% 6,0% 5,5% ratio benefits from NPL portfolio sale in May 75% 69% 71% 68% 71% 68% Benefits from TL 0.5bn retail NPL portfolio sale Q4.12 Provision Charge (TL mn) Pre-provision margin (bps) 194 166 222 262 218 TL 190mn 391 Pre Provision Margin (bps) 409 bps 2.6x Cost of Risk 156 bps 184 Cost of Risk (bps) 156 bps page 23
Segment review: Turkey National Bank of Greece Results Strong capital adequacy and low leverage support balance sheet expansion Capital Adequacy Securities / Total Assets (%) (TRY mn) Core Tier I 7 949 Tier II and Deductions 2 555 Total Capital 10 504 69% 53% 12,8 14,4 14.4 83% 54% 77% 23,4 18,6 19,2 AFS / Total Securities RWAs 63 700 Core Tier I Ratio 12.5% Total CAR 16.5% Peer 3 Finansbank Peer 4 Peer 1 Peer 2 BRSA Consolidated CAR (%) vs. peers Assets / Equity (x) 16.5 8,6 8.6 8,5 8,9 8,9 9,6 14,0 14,3 14,5 14,8 Peer 1 Peer 4 Peer 2 Peer 3 Finansbank BRSA Consolidated Finansbank Peer 2 Peer 3 Peer 1 Peer 4 BRSA Consolidated page 24
National Bank of Greece Q2.2014 Results: Southeastern Europe
Segment review: SEE National Bank of Greece Results SEE: profitability keeps recovering on core income growth, cost containment and CoR normalization Pre-Provision Earnings Highlights P&L Account SEE business profitability improves further: H1.14 PAT at 30m (4x H1.13 PAT) H1 NII and fees up by 9% yoy NIM settles at 345bps (+32bps yoy, -9bps qoq) Cost containment is sustained, with H1 costs -6% yoy 90dpd improves by 40bps qoq to 24.4% allowing CoR to drop to 139bps; coverage at 53.5% Aided by, H1.14 PPI recovers sharply (+32% yoy), on strong core income growth (+9% yoy), good cost containment (-6% yoy) and lowering credit risk charges (-20% yoy) Liquidity improves as credit conditions remain tight: Deposits +1% yoy, deleveraging softens (net loans -3% yoy) L:D ratio at 100% mn H1.14 H1.13 yoy% qoq% NII 135 123 +10% 68 +1% Net fees 40 38 +7% 20 +1% Core Revenues 176 161 +9% 88 +1% Trading & other income 4 6-41% 2-13% Income 180 167 +7% 90 +1% Operating Expenses (103) (109) -6% (52) +1% Pre-provision income 77 58 +32% 38-1% Provisions (40) (50) -20% (19) -11% Operating Profit 37 8 >100% 19 +12% Other impairment (5) (2) +92% (4) >100% Taxes (2) 1 - (0) -97% Minority (1) (0) +100% (0) +19% Net income 30 7 >100% 15 +8% page 26
Segment review: SEE National Bank of Greece Results Core income growth and cost containment drive H1.14 PPI growth of +32% yoy Income Asset yields and funding cost 6,17% 5,98% 5,79% 5,88% 5,68% 5,69% Asset yield +1bps qoq -29bps yoy 67 62 62 62 66 68mn NII +1% qoq 18 19 21 21 20 20mn Fees +1% qoq 322 313 312 332 354 345bps NIM 3,42% 3,24% 3,03% 7,8 7,9 8,0 2,67% 7,7 2,35% 2,28% 7,6 7,9 IEAs Funding cost -7bps qoq -96 bps yoy Opex and C:I Pre-provision income 109 103mn OpEx -6% yoy 64 64 64 62 57 58% C:I 30 30 30 34 39 38mn Pre-prov. -1% qoq 213 217 220 247 284 283bps Pre-provision margin -1bps qoq H1.13 H1.14 page 27
Q2.12 Segment review: SEE National Bank of Greece Results Balanced liquidity profile with net loans fully funded by deposits Deposits Deposits per country 5,2 5,3 5,6 5,5 5,4 5.4bn +1% yoy +0% qoq corporate retail Bulgaria 2.5bn -4% yoy -4%qoq Romania 0.9bn +6% yoy +7% qoq FYROM 1.0bn +6% yoy +2% qoq Serbia 0.8bn Albania +7% yoy +5% qoq 0.2bn +4% yoy +0% qoq 6M.13 6M.14 6M13 6M.14 6M.13 6M.14 6M.13 6M.14 6M.13 6M.14 Gross Loans Net Loans:Deposits Commercial gap 6,4 6,3 6,3 6,2 6,2 6.2bn -2% yoy 0% qoq 108% 104% 99% 99% 100% Down from peak of 200% 100% L:D -4pps yoy -1pps qoq Commercial gap mn (net loans deposits) 1.227 212 (11) page 28
Segment review: SEE National Bank of Greece Results Recoveries in Q2 drive credit risk normalization Charge-offs & Cost of Risk Cash coverage % 29 34 18 12 21 19mn charge-offs 203 245 126 90 155 139bps provision run rate 49% 51% 51% 52% 52% 54% Bulgaria Romania FYROM Serbia 52% 47% 59% 89% +90dpd generation ( m) +90dpd ratio 41 8 14 48 24,1% 24,4% 24,6% 23,9% 24,8% 24,4% -21-21mn -47 page 29
National Bank of Greece Appendix
Appendix National Bank of Greece Results NBG Group: Summary Financials Consolidated Profit & Loss Account mn H1.14 H1.13 yoy% qoq% NII 1 511 1 609-6% 760 751 +1% Net fees 266 279-5% 137 129 +6% Insurance income 37 32 +14% 17 20-15% Trading & other income 24 24 +0% (20) 44 - Income 1 838 1 945-5% 894 944-5% Operating Expenses (1 010) (1 153) -12% (504) (506) -0% Pre-Provision Income 828 792 +5% 390 438-11% Loan Provision Charges (705) (853) -17% (342) (362) -5% Operating Profit 123 (61) - 48 76-37% Other impairments (14) 439 - (9) (5) +91% Cash PBT 110 378-71% 39 71-46% Taxes 26 (52) - 46 (20) - Minorities & non cash chrg (27) (14) +88% (14) (13) +8% Attrib. PAT (before one-offs) 109 311-65% 71 38 +86% DTA & other one-offs 1 037 32 >100% 894 143 >100% Attributable PAT 1 146 343 >100% 965 181 >100% Balance Sheet mn H1.14 H1.13 yoy% qoq% Cash & Reserves 5 156 4 988 +3% 5 881-12% Interbank placements 2 926 3 063-4% 3 082-5% Securities 24 909 26 916-7% 26 126-5% Loans (gross) 70 417 70 308 +0% 70 450 0% Provisions (9 197) (8 157) +13% (9 080) +1% Goodwill & Intangibles 1 752 2 026-14% 1 707 +3% Tangible assets 2 061 1 780 +16% 2 074-1% Other assets 13 157 9 510 +38% 11 724 +12% Total Assets 111 181 110 434 +1% 111 964-1% Interbank & Securities Repos 18 525 29 439-37% 25 043-26% Due to customers 65 446 60 824 +8% 65 888-1% Debt securities 5 418 3 658 +48% 3 879 +40% Other liabilities 10 198 8 914 +14% 9 060 +13% Hybrids 80 82-2% 80 0% Minorities 707 68 >100% 694 +2% Equity 10 807 7 449 +45% 7 320 +48% Total liabilities & equity 111 181 110 434 +1% 111 964-1% page 31
Appendix National Bank of Greece Results Turkey: Summary Financials Profit & Loss Account TL mn H1.14 H1.13 yoy% qoq% Net interest income 1 547 1 691-8% 777 +1% Net fees 579 521 +11% 299 +7% Trading & other income (67) 92 - (58) >100% Income 2 059 2 303-11% 1 018-2% Operating expenses (1 101) (980) +12% (521) -10% Pre-provision earnings 959 1 323-28% 497 +8% Provisions (407) (360) +13% (190) -13% Income tax (112) (170) -34% (60) +16% Minority (2) (2) +11% (1) >100% Attributable PAT 438 791-45% 246 +28% Summary Balance Sheet TL mn yoy% qoq% Cash & reserves 8 272 7 036 +18% 8 602-4% Interbank placements 484 1 465-67% 5 070-90% Investment & Trading Securities 9 218 7 595 +21% 8 774 +5% Loans (net) 48 658 43 610 +12% 48 500 +0% Tangible assets 1 505 510 >100% 1 514-1% Goodwill & intangibles 230 200 +15% 217 +6% Other assets 3 934 2 287 +72% 5 093-23% Total Assets 72 302 62 704 +15% 77 770-7% Interbank liabilities 6 646 4 736 +40% 11 532-42% Due to customers 37 725 35 095 +7% 40 367-7% Borrowed funds 12 931 9 420 +37% 11 001 +18% Other liabilities 5 202 4 151 +25% 4 896 +6% Minorities 170 159 +7% 168 +1% Equity 9 628 9 144 +5% 9 805-2% Total liabilities & equity 72 302 62 704 +15% 77 770-7% page 32
National Bank of Greece Contact details Paula Hadjisotiriou Deputy CEO +30210 334 3051 phadjisotiriou@nbg.gr Paul Mylonas Deputy CEO +30210 334 1521 pmylonas@nbg.gr Greg Papagrigoris Head of IR +30210 334 2310 papagrigoris.gr@nbg.gr ir@nbg.gr 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 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 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, accounting consequences of doing so, as well as their ability to assume such risks, without reliance on the information contained in this presentation.