H 1 2 0 1 7 R e s u l t s August 31, 2017
Table of Contents Pages I. Macroeconomic Update 3 II. H1 17 Performance Highlights 7 III. H1 17 Performance 20 1. Balance Sheet 20 2. Pre Provision Income 22 3. Asset Quality 26 4. Liquidity 32 5. Capital 35 IV. Appendix 37 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
I. Macroeconomic Update H1 2017 Results 3
I Recovery is Gradually Gaining Momentum- Labour Market is Bouncing Back Unemployment Rate Declines on the Back of Part-time Jobs Confidence Recouped Following the Completion of the 2 nd Review % % 12.0 30.0 10.0-6% 25.0 8.0 20.0 6.0 4.0 2.0 Part-time employment (% of total employment), rhs Unemployment rate, lhs 15.0 10.0 0.0 5.0 I III I III I III I III I III I III I III I III I II 2009 2010 2011 2012 2013 2014 2015 2016 2017 105 100 95 90 85 80 9.0% 8.0% 7.0% 6.0% 98.2 95.1 91.8 92.9 93.4 94.9 93.2 94.0 5.0% 4.0% 2016 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Economic Sentiment Index, lhs Greek-German 10y Bonds Spread, rhs Note: Unemployment rate Q2 2017 is the average rate of April and May Source: ELSTAT Sources: : ΙΟΒΕ, Bloomberg Employment Gains per Sector: Primary, Secondary and Public Administration 125 120 115 110 105 100 95 90 85 80 Index, Q1 2013=100 Ι ΙΙ ΙΙΙ ΙV Ι ΙΙ ΙΙΙ ΙV Ι ΙΙ ΙΙΙ ΙV Ι ΙΙ ΙΙΙ ΙV Ι % of total employment 2013 2014 2015 2016 2017 Primary Sector Secondary Sector excl. Construction Real Estate & Construction Trade-Transport-Tourism Public Administration 32.2 11.2 23.0 12.4 4.2 The adjustment programmes implemented during the past years managed to address macroeconomic imbalances resulting to a substantive progress in terms of fiscal consolidation, external imbalances and structural reforms in labour, product and services markets. These developments started to bear fruits and the economy returned to growth, as real GDP expanded in Q1 2017, against a fall in Q4 2016 (Q4 2016: -1.1%, Q1 2017:+0.4%). Employment figures show now signs of resurgence in many sectors. Industry, public administration, information and communication services recorded substantial job gains. The completion of the 2nd Review allowed the restart of Government arrears clearance, while the new measures listed in the programme have set a positive tone strengthening recovery prospects as indicated by the improvement of confidence indicators mainly for business sector but also for consumers, triggered the decline of the Greek bond spreads, allowing the Hellenic Republic to tap the markets, in end-july, for the first time since 2014, and successfully issue a 5- year Bond. Sources: ELSTAT 4
I Confidence, Tourism and Manufacturing: Growth Drivers for 2017 Business Confidence Indicators Rebound index 100 90 80 70 60 50 40 30 20 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Industry Construction Services Source: IOBE Conjunctural Indicators in Positive Territory 15% (yoy % change, 3-month moving average) 10% 5% 0% -5% -10% Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Manufacturing Retail Sales excl. Fuel Exports of Goods excl. Fuel Sources: Bank of Greece, ELSTAT A Strong Rebound of Tourism Receipts in 2017 mln tourists 10.0 8.0 3.0 6.0 4.0 4.8 2.0 3.5 5.4 3.8 6.3 4.2 3.8 4.1 7.6 7.5 7.9 bln 5.0 4.0 3.0 2.0 1.0 Both soft and hard data indicators point to the recovery of significant aspects of economic activity. In particular, retail sales, employment rate, industrial production and car sales all exhibit positive trends, supporting the economy. Therefore, the growth rate of economic activity is expected to accelerate gradually during 2017 and peak in the last quarter. The timely completion of the 3rd Review will reinforce business confidence, while the continuation of reforms, the acceleration of the privatization programme and the expected good tourism period in 2017 are points suggesting that our last estimate, for a GDP growth of 1.5% in 2017, is attainable. 0.0 H1 2012 H1 2013 H1 2014 H1 2015 H1 2016 H1 2017 Tourist Arrivals (excl. cruises) mln tourists, lhs Tourism Receipts in bln, rhs 0.0 In H1 2017, tourist arrivals increased by 6.6% yoy and tourism revenues by 7.1% yoy. Source: Bank of Greece 5
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 I Liquidity Conditions and Price Developments Positive Deposit Flows Following the Conclusion of the 2 nd Review HICP Turned Positive in 2017, Ending a 4year Deflation Period 4,000 3,000 2,000 1,000 0-1,000-2,000 monthly deposit flows in mln 2.0 % 1.0 0.0-1.0-2.0-3.0-4.0 Source: Bank of Greece Enterprises Households Total Private Sector HICP _ Constant Taxes HICP HICP_excl. Energy Prices Source: ELSTAT, Eurostat The Declining Pace of Real Estate Prices Slowed Significantly 5.0% 0.0% -5.0% -10.0% -15.0% H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Q1 Source: Bank of Greece 2011 2012 2013 2014 2015 2016 2017 Retail Price Index yoy % change Office Price Index yoy % change New Index of Apartment Prices yoy % change The decline in private sector deposits of 2.4 bln recorded in January-April 2017 due to tax obligations and uncertainty, has been almost offset by the increase in deposits recorded in May July 2017 of 2.3 bln, reflecting the positive impact of the completion of the 2 nd Review, as well as the support by tourism related activities. After a four year period of negative inflation, harmonised inflation increased by 1.4% in January -July 2017, on average, as a result of i) higher oil prices, ii) tax hikes on consumption and iii) recovery in economic activity. The pace of adjustment in house prises slowed significantly to -1.8% yoy in Q1 2017 and -1.3% in H2 2016, from -4.4% in Q1 2016 and -5.5% in H2 2015, respectively. The main challenges for the Greek economy are: the pursuing of structural reforms -especially the ones aiming to liberalise the product markets, that will benefit export-oriented businesses, the acceleration of the privatisation programme necessary to boost confidence and attract investment and, the specification of additional measures needed for debt sustainability. 6
II. H1 17 Performance Highlights H1 2017 Results 7
II H1 2017 Financial Performance Overview 1 Capital Strong CET1 ratio at 17.9% (+74bps q-o-q) Tangible Equity at 9.0bn (+ 0.2bn q-o-q) 2 Asset Quality NPEs down by 0.5bn in Greece q-o-q NPLs down by 0.7bn q-o-q in Greece 3 Liquidity ELA down by 1.8bn in 1H 2017 or 4.1bn y-t-d 1 Group deposits up by 0.2bn in H1 or 1.1bn y-t-d 1 4 PPI performance H1 2017 Core PPI at 622mn (+5% y-o-y) 5 Opex - C/I ratio H1 2017 Operating Expenses at 560mn, in line with FY 2017 target of 1.1bn C/I ratio at 46%, from 48% a year ago 6 Cost of Risk H1 2017 impairment losses at 463mn (-24% y-o-y) CoR at 155bps over gross loans in H1 2017 7 Profit After Tax H1 2017 PAT 2 at 118mn versus a loss of 25mn in H1 2016 1 As of end of August 2017 2 Profit After Tax from continuing operations 8
II H1 2017 Group P&L and Balance Sheet basic figures Profit & Loss ( million) H1 2017 H1 yoy % 2016 1 change Q2 2017 Q1 2017 qoq % change Balance Sheet ( billion) 30/6/2017 31/3/2017 30/6/2016 Net Interest Income (NII) 976 953 2.4% 494 483 2.3% Fees and commissions Income 162 156 3.8% 86 76 13.3% Trading & Other Income 60 86 17 43 Operating Income 1,198 1,194 0.3% 597 601 (0.8%) Assets 62.7 64.1 67.4 Net Loans 43.8 44.2 45.5 Deposits 33.1 33.1 31.7 Eurosystem Funding 15.0 17.0 22.7 ELA 11.4 12.2 16.9 ECB 3.6 4.8 5.8 Total Operating Expenses (560) (589) (4.9%) (281) (279) 0.5% Pre Provision Income (PPI) 638 606 5.4% 316 322 (1.8%) Recurring Operating Expenses (535) (542) (1.4%) (272) (263) 3.6% Core Pre Provision Income 622 592 5.1% 317 305 4.0% Impairment Losses (463) (606) (23.5%) (217) (247) (12.2%) Shareholders Equity 9.4 9.2 8.9 Tangible Equity (TE) 9.0 8.8 8.5 TBV per Share ( ) 5.9 5.7 5.5 Common Equity Tier 1 ratio (CET1) 17.9% 17.2% 16.6% CET1 Fully Loaded 17.8% 17.0% 16.2% Capital Adequacy Ratio (Total) 18.0% 17.2% 16.7% Profit/ (Loss) before income tax (PBT) 175 (0) 99 75 32.1% Risk Weighted Assets 49.1 50.3 51.3 Income Tax (57) (24) (29) (28) Profit/ (Loss) after income tax from continuing operations 118 (25) Profit/ (Loss) after income tax from discontinued operations (68) 6 71 47 (69) 1 Profit/ (Loss) after income tax 50 (19) 1 48 NPL ratio 37.6% 38.1% 37.8% Cash Coverage 69% 69% 69% Total Coverage 124% 124% 124% NPE ratio 53.7% 53.8% 52.6% Cash Coverage 48% 49% 49% Total Coverage 103% 105% 107% Net Interest Margin (NIM) 3.1% 2.8% 3.1% 3.0% Recurring Cost to Income ratio 46.2% 47.8% 46.2% 46.3% 1 P&L numbers restated for the sale of Alpha Bank Serbia 9
II Q2 Core PPI performance improved on the back of stronger core operating income PPI q-o-q evolution ( million) 12mn 322 (17) 305 11 10 (9) 317 7 (8) 316 Q1 17 Reported PPI Trading and one-off costs Q1 17 Core PPI Δ NII Δ Fees Δ OPEX & other income Q2 17 Core PPI Trading Οne-off costs Q2 17 Reported PPI Core PPI over Assets Total Assets yoy evolution ( million) ( billion) 1.78% 1.80% 1.86% 1.90% 2.02% 67.4-4.7bn -6.9% 62.7 (1.7) (1.8) (1.2) 300 297 302 305 317 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Jun-16 Net Loans Securities Other items Jun-17 Core PPI Core PPI/Assets 10
II Sustained NII by further funding improvement, despite balance sheet deleveraging NII q-o-q evolution Stabilisation of funding cost both in Eurosystem and time deposits ( million) 483 4 4 5 494 (1) (1) 1.48% 1.29% 1.21% 1.13% 1.13% 0.82% 0.81% 0.75% 0.68% 0.67% Q1 17 Loans Deposits Funding Bonds & other Caledar effect Q2 17 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 New time depos rates Funding cost incl. Pillar II fees Net Loans balances (Group) Deposits balances (Group) ELA Funding Evolution ( billion) - 0.4bn -0.9% 44.2 43.8 ( billion) 33.1 + 51mn +0.2% 33.1 14.4 14.5 ( billion) 12.2-0.8bn -6.6% 11.4 18.7 18.6 Mar-17 Jun-17 Mar-17 Core Time Jun-17 Mar-17 Jun-17 11
II Fees supported by improved market environment and Alpha Bank s participation in project financing Net Fees & Commissions Income y-o-y ( million) Net Fees & Commission Income evolution q-o-q ( million) 155.7 +4% 161.5 4.4 3.1 22.7 +29% 29.2 Investment Banking & Brokerage 75.7 1.3 14.5 +13.3% 6.6 1.0 1.7 0.5 0.2 85.8 1.8 14.7 128.6 +1% 129.3 Asset Gathering & Bancassurance Commercial Banking 60.0 69.3 H1 16 H1 17 Mar-17 Loans Cards Other Commercial Banking Investment Banking & Brokerage Asset Gathering & Bancassurance Jun-17 Alpha Private Bank balances Asset Management balances Commercial Banking ( million) ( million) 4,172 +5% 4,361 2,022-29% 1,442 2,692 +32% 2,033 118 226 Jun-16 Jun-17 Discretionary Advisory Execution Only 1,250 195 872 273 1,037 183 222 Jun-16 +23% +40% +19% 1,532 Jun-17 Money Market Mutual Funds Non Money Market Mututal Funds Other AUM Fees & Commissions Income up by 13.3% q-o-q mainly due to higher revenues related to increased participation in project financing Fees & Commissions Income also backed by improved market conditions, reflected in increased revenues from cards, asset gathering and other Commercial Banking Alpha Private Bank balances up by 5% y-o-y on the back of increased advisory and discretionary operations Asset Management balances up by 23% y-o-y on the back of mutual fund inflows and higher market valuations 12
II Recurring OPEX fell by 7.6mn y-o-y on the back of the ongoing platform rationalisation Recurring Operating Expenses decreased Recurring C/I ratio further improved ( million) - 7.6mn -1.4% Depreciation & Amortization 542 535 48 50 65% 242 249 G&As 54% Staff costs 252-6.3% 236 50% 48% 46% Employees evolution H1 2016 1 H1 2017 2013 2014 2015 2016 H1 2017 Greece -767 / SEE -879 2 13,569-12% 11,923 Branches evolution 9,670 8,903 3,899 3,020 Jun-16 Greece Abroad Jun-17 Greece -99 / Abroad -77 2 856-21% 680 592 493 264 187 H1 2017 OPEX performance in line with our 2017 target for 1.1bn Recurring Cost to Income ratio further improved to 46% in H1 2017 Staff costs reduced by 6.3% y-o-y, mainly on the back of savings arising from Voluntary Separation Scheme (VSS) implemented in 2016 12% decrease of workforce since June 2016 21% decrease of branches since June 2016 Jun-16 Greece Abroad Jun-17 1 Restated for the sale of Alpha Bank Serbia 2 Including 936 Employees and 75 branches of Serbian subsidiary in June 2016 13
II Common Equity Tier I ratio at 17.9%; Fully Loaded CET1 ratio at 17.8%; Tangible Equity at 9.0bn CET1 ratio quarterly evolution ( million) 8,804 9,038 8,645 8,800 17.2% 14bps 22bps 19bps 19bps 17.9% FLB3 CET1 excl. DTC law at 12.2% 17.8% 18.0% Overall Capital Requirement (OCR) for 2017 at 12.25% Tangible Equity CET1 capital CET1 Mar-17 Period Result 1 AFS Reserve RWA impact / Other Impact from Sale of Serbia CET1 Jun-17 FLB3 CET1 Jun-17 Total Capital Adequacy Ratio Jun-17 Group Risk Weighted Assets (RWAs) development GGBs Book Value evolution Tangible Book Value evolution ( billion) ( billion) ( million) 50.3 49.1 0.7 4.0 45.5 (0.8) (0.4) Due to sale of Serbia 79% 0.3 4.0 44.8 RWAs/ Assets Marked at 78% 2.7 2.7 2.1 + 0.2bn 2.3 Marked at 86% 8,804 71 148 15 TBVPS 5.7 5.9 9,038 Mar-17 Credit Risk Market Risk Jun-17 Credit Risk Operational Risk Market Risk Mar-17 Book Jun-17 Nominal Mar-17 Period Results AFS Reserves Other Jun-17 1 Before discontinued operations 14
II Negative formation of NPEs in Q2 by 0.5bn NPE formation - Greece NPE Targets ( billion) ( billion) 0.7 0.9 (0.5) (0.7) (0.3) (0.7) 27.0-1bn -4% - 8.4bn -32% 26.0 17.5 27.6 27.5 27.0 27.1 Dec-16 Entries Exits write offs Mar-17 Entries Exits write offs Jun-17 Target Jun-17 Jun-17 Actual Dec-17 Target Dec-19 Target Net NPE formation - Greece ( million) NPEs in Greece per segment ( billion) Total NPEs in Greece 27.0bn 2,823 640 16% Consumer 4.3 Business (123) (505) 29% Mortgages 7.7 15.0 55% FY 15 FY 16 Q1 17 Q2 17 Note: Write-offs in Q2 17 stood at 746mn 15
Consumer Credit Mortgages Business II NPL formation down by 0.7bn NPL balances evolution - Greece NPL targets - Greece ( billion) 19.7 19.6 19.5-0.7bn - 1.2bn -6% 18.8 17.6-7.2bn -41% 10.4 19.1 18.8 Jun-17 Actual Dec-17 Target Dec-19 Target Jun-16 Dec-16 Mar-17 Jun-17 Target Jun-17 Net NPL formation - Greece ( million) NPL formation by segment - Greece ( million) H1 2017 FY 2015 FY 2016 Q1 17 Q2 17 956 (53) (96) 1 NPL Cash Coverage 77% 1,940 477 (743) 7 67 43% (240) (111) (15) (717) FY 15 FY 16 Q1 17 Q2 17 508 86% (1) (41) Note: Write-offs in Q2 17 stood at 746mn 1 An amount of 67mn has been transferred from business to consumer (194) 16
II Group Cost of Risk for H1 2017 at 155bps; Cash Coverage stable at 69% for NPLs and at 48% for NPEs Group Cost of Risk (over Gross Loans) Group NPL and NPE Coverage ( million) H1 2016 196bps -41bps -21% H1 2017 155bps 124% 107% 124% 125% 106% 106% 124% 105% 124% 103% NPL Total Coverage NPE Total Coverage Cost of Risk 165bps 227bps 169bps 201bps 164bps 146bps 69% 68% 69% 69% 69% 49% 49% 49% 49% 48% 256 350 258 304 247 217 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 NPL Cash coverage NPE Cash coverage 17
II Loan to Deposit Ratio further improved on the back of deposit inflows accentuated during Q3 and loans deleveraging Group Deposits quarterly evolution Loan to Deposit ratio decreased further 31.7 5.0 26.7 4.9 5.0 28.1 28.1 (0.1) YtD + 1.1bn 32.9 33.1 0.2 33.1 Impacted by a large project finance outflow 5.2 27.9 0.8 0.1 34.0 5.3 28.7 144% 144% 135% 136% (13pp) 135% 132% 131% 128% Jun-16 Dec-16 Mar-17 Greece Abroad Jun-17 Greece Abroad Aug-17 Jun-16 Dec-16 Jun-17 Aug-17 Greece Abroad Funding profile on a restoration path away from the Central Banks facilities Group Greece 47% 51% 52% 53% 54% Loan to Deposit ratio in Greece further reduced to 131% in August 2017 Q2 deposit flows negatively affected by the reversal of Q1 in-transit inflows related to a large project finance Group deposits up by 1.1bn in the first 8 months of the year, with 34% 28% 26% 24% 20% Jun-16 Dec-16 Mar-17 Jun-17 Aug-17 18% excl. EFSF bonds Greek deposits posting an increase of 0.7bn and deposits abroad increasing by 0.4bn Eurosystem funding over Assets further reduced to 20% as of August 2017 or 18% excluding EFSF bonds Depos/Assets Eurosystem funding/assets 18
August 2017 II Eurosystem reliance down by c. 5.9bn y-t-d driven by increased repo activity, EFSF bonds disposals and deposit inflows Eurosystem funding y-o-y reduction ( billion) Buffer 3.8 3.6 22.7 YtD - 5.9bn 16.9 18.4 13.2 17.0 (0.5) (0.9) (0.3) (0.2) 15.0 12.2 11.4 (2.6) 12.5 9.1 Eurosystem reliance down by 5.9bn within 2017, at 12.5bn as of August 2017 Post June 2017, Eurosystem funding reduction was driven by 0.9bn repo transactions, 0.9bn deposit inflows, 0.5bn securities disposals (mainly EFSF) and 0.3bn loans deleveraging 5.8 5.2 4.8 3.6 3.4 Jun-16 Dec-16 Mar-17 Securities Disposal Interbank Repos & Other ECB SEE Liquidity ELA Banking Book Jun-17 Δ Aug-17 Pillar II bonds fully repaid in Q2 2017 Interbank repos increased to 2.7bn as of August 2017, gradually diversifying the Bank s funding profile Basic Balance Sheet Funding sources Repos ECB Funding 1% 4% 10% 7% 31% -33% 23% Outstanding Interbank Repos 2.7bn Outstanding EFSF bonds 1.5bn ELA Funding 58% +5% 66% No Pillar II Outstanding TLTRO II 3.1bn Deposits Jun -16 Jun -17 19
III. H1 17 Performance 1. Balance Sheet H1 2017 Results 20
III Balance Sheet composition Asset split ( billion) Liabilities and equity split ( billion) 64.1 62.7 64.1 62.7 Cash Securities 1.3 5.5 Cash Securities 1.2 5.7 12.2 ELA 11.4 ELA EFSF bonds 2.4 EFSF bonds 1.9 4.8 ECB 3.6 ECB 33.1 14.4 Time deposits 33.1 14.5 Time deposits Net loans 44.2 Net loans 43.8 18.7 Core deposits 18.6 Core deposits PPE DTA 0.8 4.5 PPE DTA 0.8 4.4 0.6 9.2 Debt securities Equity 0.5 9.5 Debt securities Equity Other 5.5 Other 4.9 4.3 Other 4.6 Other Mar-17 Jun-17 Mar-17 Jun-17 P&L Balance Sheet P&L Asset Quality Liquidity Capital 21
III-2. Pre Provision Income H1 2017 Results 22
III Resilient core PPI; NII supported by reduced cost of funding Core PPI breakdown ( million) Lower contribution of loans to NII mainly counterbalanced by reduced wholesale funding cost (y-o-y) ( million) 477 481 490 483 494 570 578 586 568 589 89 86 89 89 93 Bonds & other Loans 300 297 302 305 317 521 517 512 494 499 Funding (49) (51) (51) (50) (51) (71) (60) (51) (48) (85) Depos Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Central Banks funding balances & cost continue to decline (270) (281) (285) (263) (272) ( billion) 1.48% 1.29% 1.21% 1.13% 1.13% Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 22.7 20.8 18.3 17.0 15.0 Core Operating Income Recurring OPEX Core PPI 16.9 15.3 13.2 12.2 11.4 5.8 5.5 5.2 4.8 3.6 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 ECB ELA Funding Cost incl. Pillar II fees Balance Sheet P&L Asset Quality Liquidity Capital 23
III Loan and deposit spreads Reduced net loan balances (bps) Deposit mix & cost evolution (bps) 451 448 445 444 443 (67) (66) (65) (64) (64) % Total ( billion) 45.5 44.9 44.4 44.2 43.8 ( billion) 31.7 32.0 32.9 33.1 33.1 13.5 13.8 14.4 14.4 14.5 44% End of quarter balances Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 End of quarter balances 18.2 18.1 18.6 18.7 18.6 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 56% Core deposits Time deposits Net Loans Group loans spread Group deposits spread Lending spreads (bps) Deposit spreads (bps) 915 907 906 904 894 724 476 720 716 715 710 471 474 473 473 Consumer Credit - Greece Small Business Loans - Greece SEE (31) (34) (34) (34) (34) (108) (103) (97) (98) (94) Sight and Savings - Greece SE Europe 427 427 424 419 416 261 261 261 260 256 Medium & Large Business - Greece Mortgages - Greece (112) (106) (102) (99) (99) Time Deposits - Greece Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Balance Sheet P&L Asset Quality Liquidity Capital 24
III Operating expenses million H1 2017 H1 2016 yoy % Recurring OPEX Evolution Staff costs (236) (252) (6.3%) ( million) General expenses (249) (242) 2.8% Depreciation and amortisation expenses (50) (48) 3.3% Recurring OPEX (535) (542) (1.4%) 270 281 285 23 24 25 121 133 135 263 272 25 25 121 128 Depreciation & amortisation expenses General expenses Integration costs (4) (2) 128.3% Extraordinary/one-off costs (21) (44) (52.7%) Total OPEX (560) (589) (4.9%) 125 124 125 116 119 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Staff costs Employees Branches Greece 9,570 9,625 9,680 9,687 9,687 9,679 9,670 9,653 8,888 8,900 8,903 Greece 1 627 627 627 626 612 592 565 533 505 493 VSS Gr -2,208 15,202 15,149 Bulg -744 FYROM -240 VSS Cy -249 14,371 14,210 13,856 13,695 13,569 13,481 Bulg Hilton 1,024-83 FYROM -323-18 941 929 Serbia 897-836 882 856 Serbia 820-67 11,863 11,897 11,923 721 692 680 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 1 Includes corporate and private banking centers Balance Sheet P&L Asset Quality Liquidity Capital 25
III-3. Asset Quality H1 2017 Results 26
Consumer Credit Mortgages Business III Coverage of Group non performing loans 55% 132% Evolution of coverage for the Group 79% 78% 78% 78% 77% 55% 124% 69% 68% 69% 69% 69% Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Collateral Coverage Total NPL Coverage Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Collateral Coverage Total NPL Coverage 65% 113% Group NPLs NPEs as of June 2017 45% 45% 46% 48% 48% ( billion) NPE ratio Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Collateral Coverage Total NPL Coverage Abroad 31.7 4.7 53.7% 54.2% 22.2 NPL ratio 37.6% NPE Cash coverage NPL Cash coverage 31% 116% Greece 27.0 53.6% 3.4 18.8 39.6% 48% 69% 15.3 37.3% 2.5 12.7 54% 47% 74% 68% 81% 82% 84% 83% 85% NPEs NPLs Cash Coverage Cash coverage for the Group at 69% or 124% including collateral coverage of 55% Jun-16 Sep-16 Dec-16 Mar-17 Jun-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 27
III NPL Workout Units Analysis Loans perimeter managed by NPL Units ( billion) NPL Workout Units balances breakdown by segment ( billion) Performing NPLs 50.4 23.7 31.6 18.8 Total Loans Greece 23.4 0.3 Non-NPL Management Units 18.6 5.1 13.5 Retail NPL Management Unit 8.1 3.1 5.0 WHL NPL Management Unit Performing NPLs 9.2 3.3 5.9 Retail 18.6bn 3.9 1.0 2.9 5.6 5.6 0.8 1.5 4.8 4.1 Wholesale 8.1bn 2.5 1.6 0.9 26.8 8.3 18.5 Mortgages Consumer SBLs SMEs Corporates Total Retail NPL Unit manages all retail exposures which are >1dpd and total 18.6bn In retail c. 3,050 FTEs broken down in WHL NPL Unit manages 8.12bn, out of which 3.12bn are performing loans 1 In wholesale c.149 FTEs broken down in (legal outsourcing excluded): c.650 in Retail NPL Unit Management & Monitoring: 46 FTEs c.500 in branches Special Credit Division : 63 FTEs c.1,900 in collection and legal firms Permanent arrears Division: 40 FTEs 1 Including leasing, factoring and International Unit Greece Balance Sheet P&L Asset Quality Liquidity Capital 28
III Alpha Bank has actively engaged with licensed independent servicers for the management of both retail and large corporate Non Performing Exposures CEPAL, the 1st company to be licensed as a Servicer in Greece, is a partnership between Centerbridge Partners (CP), who will be the majority shareholder, and Alpha Bank, which will maintain a minority stake Cepal went operationally live in the 2 nd week of May Pillarstone platform licensed in May 2017 by the Bank of Greece in order to manage non-performing exposures on behalf of Greek banks Pillarstone stands ready to engage directly with a number of Greek companies to provide: Alpha Bank has already assigned 500mln to Cepal with the following characteristics: o long-term capital co-funded by KKR & EBRD and optionally by the platform Banks o Mortgages 33%, Consumer 33%, Small Business 33%; o Secured: 76% o operational expertise, which will enable the companies to stabilize, recover and grow o Debtors 4,500+, Accounts 13,000+ Alpha Bank will additionally assign to CEPAL 1bn within October 2017 and another 2.5bn by mid-2018, whereas the intention is to further increase the assigned volumes, subject to the Servicer s performance Cases reviewed to include mainly large exposures and strategic SME s, which can be restructured both for the benefit of the Greek economy and the Bank s performance Balance Sheet P&L Asset Quality Liquidity Capital 29
IIΙ Detailed overview of Alpha Bank s asset quality by portfolio - Greece ( billion) Wholesale SBL Mortgages Consumer Total Gross loans 20.8 6.4 16.6 6.7 50.4 (-) Provisions (5.0) (2.8) (2.5) (2.5) (12.7) Net loans 15.8 3.6 14.0 4.2 37.7 NPLs 5.3 4.8 5.9 2.9 18.8 NPL ratio 25.4% 74.4% 35.4% 42.9% 37.3% NPEs 9.4 5.6 7.7 4.3 27.0 NPE ratio 45.3% 86.9% 46.7% 64.6% 53.6% NPL collateral 3.2 2.4 4.1 0.9 10.6 NPE collateral 5.8 2.9 5.5 1.0 15.2 Coverage ratio Total Collateral Cash 155% 61% 94% 114% 110% 103% 112% 104% 61% 51% 53% 69% 71% 53% 58% 50% 43% 33% 118% 32% 86% 124% 81% 57% 24% 57% 68% 103% 56% 47% NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE NPLs 5.3 4.8 5.9 2.9 18.8 (+) Forborne NPLs < 90 dpds 2.8 0.8 1.8 1.4 6.8 (+) Individually impaired 1 1.3 0.0 0.0 0.0 1.4 NPEs 9.4 5.6 7.7 4.3 27.0 Forborne NPLs >90dpd 0.8 1.1 1.6 1.5 5.0 Forborne NPLs <90dpd 2.8 0.8 1.8 1.4 6.8 Performing forborne 0.5 0.3 3.2 0.6 4.6 Total forborne 4.0 2.2 6.7 3.5 16.5 1 Including unlikely to pay Balance Sheet P&L Asset Quality Liquidity Capital 30
IIΙ Detailed overview of Alpha Bank s asset quality by portfolio - Group ( billion) Wholesale SBL Mortgages Consumer Total Gross loans 25.2 6.5 20.1 7.2 59.1 (-) Provisions (6.4) (2.8) (3.4) (2.6) (15.3) Net loans 18.8 3.7 16.7 4.6 43.8 NPLs 7.2 4.8 7.1 3.1 22.2 NPL ratio 28.6% 74.2% 35.4% 42.5% 37.6% NPEs 12.0 5.6 9.5 4.6 31.7 NPE ratio 47.5% 86.8% 47.4% 63.2% 53.7% NPL collateral 4.1 2.5 4.6 1.0 12.2 NPE collateral 7.0 3.0 6.4 1.1 17.5 Coverage ratio Total Collateral Cash 146% 57% 89% 112% 109% 103% 113% 103% 59% 51% 53% 65% 67% 54% 58% 50% 48% 36% 116% 31% 85% 124% 81% 55% 24% 57% 69% 103% 55% 48% NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE NPLs 7.2 4.8 7.1 3.1 22.2 (+) Forborne NPLs < 90 dpds 3.3 0.8 2.4 1.5 8.0 (+) Individually impaired 1 1.4 0.0 0.1 0.0 1.5 NPEs 12.0 5.6 9.5 4.6 31.7 Forborne NPLs >90dpd 1.4 1.1 2.0 1.5 6.0 Forborne NPLs <90dpd 3.3 0.8 2.4 1.5 8.0 Performing forborne 0.6 0.3 3.6 0.6 5.1 Total forborne 5.3 2.2 8.0 3.6 19.1 1 Including unlikely to pay Balance Sheet P&L Asset Quality Liquidity Capital 31
III-4. Liquidity H1 2017 Results 32
III Loan to deposit ratio improvement continued in Q2. Collateral pool at 18.8bn Group Loan to Deposit ratio decreased further Eurosystem collateral pool (cash values) ( billion) 22.0 144% (13pp) 0.7 20.4 18.8 144% 135% 136% 135% 132% 131% 128% Pillar II Securitisations Bonds Loans EFSF Bonds 14.1 2.0 ELA 16.8 13.8 1.8 5.0 ELA 15.6 13.4 1.8 ELA 15.2 Jun-16 Dec-16 Jun-17 Aug-17 Group Greece 1.9 1.8 0.7 ECB 0.8 ECB 2.1 5.2 4.8 2.5 2.1 0.9 0.6 Dec-16 Mar-17 Jun-17 ECB 3.6 Balance Sheet P&L Asset Quality Liquidity Capital 33
III Deposits flow per quarter Alpha Bank deposits evolution in Greece Deposits breakdown June 2017 ( billion) Q3: 0.2bn Q4: 1.2bn Q1: 0.0bn Q2: ( 0.1bn) 0.3 26.7 26.9 (0.0) 0.6 0.6 28.1 0.1 28.1 27.9 0.1 (0.1) (0.2) Δ Time Core 61% Time 39% Δ Core Jun-16 Core Time Sep-16 Core Time Dec-16 Core Time Mar-17 Core Time Jun-17 Alpha Bank deposits evolution in Greece Deposits breakdown June 2017 ( billion) 26.7 0.2 0.0 26.9 0.6 0.6 28.1 0.5 (0.5) 28.1 0.2 27.9 (0.3) Δ Individuals Δ Business Business 26% Individuals 74% Jun-16 Bus. Indiv. Sep-16 Bus. Indiv. Dec-16 Bus. Indiv. Mar-17 Bus. Indiv. Jun-17 Balance Sheet P&L Asset Quality Liquidity Capital 34
III-5. Capital H1 2017 Results 35
III Common Equity Tier I ratio at 17.9%; Fully Loaded CET1 ratio at 17.8%; Tangible Equity at 9.0bn CET1 ratio quarterly evolution ( million) CET1 capital 8,645 17.2% 14bps 22bps 19bps 19bps 17.9% 8,800 17.8% 18.0% Overall Capital Requirement (OCR) for 2017 at 12.25% CET1 Mar-17 Period Result AFS Reserve RWA impact / Other Impact from Sale of Serbia CET1 Jun-17 FL CET1 Jun-17 Total Capital Adequacy Ratio Jun-17 Jun-17 DTA/Tax Credit impact 3.3bn Tax Credit 0.1bn Tax Losses Phased-in Fully loaded CET1 ( bn) 0.6bn Other DTA 4.0 3.9 RWAs 1 ( bn) 1.6bn DTA 4.9 4.9 3.3bn Tax Credit Equity to regulatory capital bridge 3.3bn Tax Credit 0.6bn Other DTA ( million) Tangible book value / Tangible Assets 14.5% 9,413 9,038 8,800 13 8,813 (375) (239) Ordinary Equity Intangibles Tangible book value Regulatory Adjustments CET1 capital Lower Tier II Total CAD 1 Risk weighting is 100% for the Tax Credit and 250% for the Other DTA Balance Sheet P&L Asset Quality Liquidity Capital 36
IV. Appendix H1 2017 Results 37
IV Business Volumes ( million) Jun 2017 Mar 2017 Dec 2016 Sep 2016 Jun 2016 % Jun 2017 / Jun 2016 Group Gross Loans 59,062 60,045 60,316 60,821 61,418 (3.8%) Mortgages 20,100 20,219 20,260 20,480 20,541 (2.1%) Consumer Loans 5,646 5,757 5,749 5,876 5,858 (3.6%) Credit Cards 1 1,585 1,634 1,676 1,637 1,593 (0.5%) Small Business Loans 6,487 6,648 6,640 6,781 6,788 (4.4%) Medium and Large Business Loans 1 25,244 25,787 25,991 26,047 26,637 (5.2%) of which: Greece 50,401 51,317 51,606 51,440 51,975 (3.0%) Mortgages 16,553 16,653 16,714 16,769 16,834 (1.7%) Consumer Loans 5,117 5,237 5,225 5,205 5,197 (1.5%) Credit Cards 1 1,547 1,596 1,638 1,587 1,543 0.3% Small Business Loans 6,419 6,581 6,573 6,710 6,712 (4.4%) Medium and Large Business Loans 1 20,765 21,250 21,456 21,169 21,689 (4.3%) of which: Shipping Loans 1,882 1,992 2,004 1,914 1,938 (2.9%) Southeastern Europe 8,385 8,446 8,448 9,082 9,123 (8.1%) Accumulated Provisions (15,277) (15,867) (15,907) (15,951) (15,922) (4.1%) Group Net Loans 43,785 44,178 44,409 44,870 45,496 (3.8%) Customer Assets 38,740 38,605 38,342 37,498 37,254 4.0% of which: Group Deposits 33,141 33,090 32,946 31,970 31,667 4.7% Sight & Savings 18,627 18,730 18,572 18,148 18,155 2.6% Time deposits & Alpha Bank Bonds 14,513 14,359 14,375 13,821 13,512 7.4% Greece 27,921 28,067 28,062 26,877 26,659 4.7% Sight & Savings 16,912 17,144 17,021 16,444 16,483 2.6% Time deposits & Alpha Bank Bonds 11,009 10,923 11,041 10,433 10,177 8.2% Southeastern Europe 4,433 4,251 4,111 4,294 4,213 5.2% Money Market Mutual Funds 535 577 593 664 739 (27.6%) Other Mutual Funds 1,426 1,341 1,286 1,224 1,225 16.4% Private Banking 3,639 3,597 3,518 3,641 3,623 0.4% 1 Reclassification of 193mn in Q2 16 from Medium & Large Business Loans to Credit Cards 38
IV Business book and shipping portfolio Group loans breakdown (Q2 17 data) Wholesale loans portfolio structure Group Services 6% Other 9% Industry 23% Mortgages 34% 59.1bn Wholesale loans 43% Real Estate 8% 25.2bn Shipping 6% Credit Cards 3% Consumer loans 9% SBLs 11% Tourism 8% Transportation 3% Construction 16% Trade 21% Shipping loans portfolio structure Dry Bulk 47% Panamax 16% Capesize 9% 1.9bn Passenger 9% Containers 8% Product Tankers 14% Tankers 1.9bn of exposure, to top-names The portfolio is split into tankers by 36%, containers 8%, passenger 9% and the rest is dry bulk Duration of loan portfolio at 5 years Handy max/ Handy size 22% Panamax 8% 36% NPL ratio at 6.5% VLCC 8% Suezmax 6% 39
IV Wealth Management evolution Alpha Private Bank balances ( million) Asset Management balances ( million) 4,203 4,172 4,361 1,442 2,206 2,022 1,532 1,228 1,250 273 171 195 2,692 1,896 2,033 922 872 1,037 101 118 226 Jun-15 Jun-16 Jun-17 135 183 222 Jun-15 Jun-16 Jun-17 Discretionary Advisory Execution Only Money Market Mutual Funds Other AUM Non Money Market Mututal Funds 40
IV SEE Operations 1 ( million) Cyprus Δ% Romania Δ% Albania Δ% TOTAL Δ% Jun-17 yoy yoy yoy yoy Deposits 2,181 19.6% 1,799 12.7% 454 10.9% 4,433 15.8% Gross Loans 5,232 (0.9%) 2,811 0.3% 342 (2.1%) 8,385 (0.5%) Mortgages 2,439 (0.5%) 1,019 2.4% 70 2.6% 3,528 0.4% Consumer Credit 270 (2.6%) 247 (1.0%) 27 24.8% 543 (0.8%) Businesses 2,524 (1.1%) 1,544 (0.8%) 246 (5.6%) 4,314 (1.3%) NPE ratio 76.9% 20.2% 25.4% NPE Cash coverage 53% 64% 34% NPE Total coverage 97% 129% 125% NPL ratio 56.4% 14.8% 13.7% NPL Cash coverage 73% 86% 64% NPL Total coverage 114% 154% 149% Total Operating Income 70.2 (14.2%) 64.2 (15.5%) 7.3 (29.2%) 141.7 (15.7%) Operating Expenses (pre-o/h allocation) 1 (25.4) (5.3%) (46.1) (0.2%) (7.6) 14.8% (79.1) (0.7%) Impairment Losses (83.7) 59.8% 2.1 (3.9) (44.9%) (85.4) 3.2% Profit Before Tax (pre- O/H allocation) (38.9) 20.3 (4.1) (22.8) Branches 22 130 34 186 (2) Employees 663 1,874 408 2,945 52 1 Country View 41
IV Alpha Bank Group ( million) H1 2017 H1 2016 yoy % change Net interest income 976.1 952.8 2.4% Net fee and commission income 161.5 155.7 3.8% Income from financial operations 40.7 59.7 Other Income 19.6 26.0 (24.5%) Operating Income 1,198.0 1,194.2 0.3% Staff costs (235.8) (251.7) (6.3%) General expenses (249.1) (242.4) 2.8% Depreciation and amortization expenses (50.0) (48.4) 3.3% Operating expenses before integration and extraordinary costs (534.9) (542.5) (1.4%) Integration costs (4.0) (1.7) Extraordinary costs 1 (21.0) (44.4) Operating expenses (559.8) (588.6) (4.9%) Impairment losses on credit risk (463.4) (605.9) (23.5%) Profit / (Loss) before income tax 174.8 (0.3) Income Tax (56.8) (24.5) Profit / (Loss) after income tax from continuing operations 118.0 (24.8) Profit / (Loss) after income tax from discontinued operations (68.5) 5.9 Profit / (Loss) attributable to shareholders 49.6 (19.0) Net interest income / average assets - MARGIN 3.1% 2.8% 1 Including VSS Cyprus of 31mn in H1 16 42
IV Alpha Bank Group ( million) Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 qoq % change yoy % change Net interest income 493.6 482.5 490.1 481.2 476.8 2.3% 3.5% Net fee and commission income 85.8 75.7 81.2 81.1 78.5 13.3% 9.2% Income from financial operations 7.3 33.5 16.0 9.1 56.8 (78.3%) (87.2%) Other Income 10.1 9.6 14.9 15.9 14.8 5.4% (31.9%) Operating Income 596.7 601.3 602.2 587.3 626.9 (0.8%) (4.8%) Staff costs (119.4) (116.4) (125.1) (124.1) (125.5) 2.6% (4.8%) General expenses (128.2) (120.9) (134.9) (132.8) (121.3) 6.1% 5.7% Depreciation and amortization expenses (24.6) (25.4) (24.7) (24.3) (23.1) (3.1%) 6.6% Recurring Operating expenses (272.2) (262.7) (284.6) (281.2) (269.8) 3.6% 0.9% Integration costs 3.0 (7.0) (3.9) (0.4) (1.2) Extraordinary costs 1 (11.4) (9.6) (66.9) 0.2 (16.6) Total Operating expenses (280.6) (279.2) (355.5) (281.4) (287.6) 0.5% (2.4%) Impairment losses (216.6) (246.8) (303.9) (258.2) (350.0) (12.2%) (38.1%) Profit / (Loss) before income tax 99.5 75.3 (57.1) 47.8 (10.8) 32.1% Income Tax (28.7) (28.0) 61.8 (8.1) (9.5) 2.4% Profit / (Loss) after income tax from continuing operations 70.7 47.2 4.7 39.7 (20.3) 49.7% Profit / (Loss) after income tax from discontinued operations (69.4) 0.9 15.4 1.5 3.5 Profit / (Loss) attributable to shareholders 1.4 48.1 20.1 41.1 (16.8) Net interest Margin (NIM) 3.1% 3.0% 3.0% 2.9% 2.8% 1 Including VSS Cyprus of 31mn in H1 16 Note: P&L numbers restated for the sale of Serbia 43
IV Group Results by Business Unit ( million) Retail Commercial & Corporate SE Europe Investment Banking & Treasury Asset Management Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Other Group Operating Income 539.4 563.4 350.0 421.8 141.7 168.1 135.7 (17.3) 31.6 23.5 (0.4) 34.8 1,198.0 1,194.2 Net Interest Income 483.6 506.0 320.6 349.0 120.1 129.1 43.4 (40.5) 6.4 7.6 2.0 1.6 976.1 952.8 Net fee and Commission Income 51.5 54.1 59.9 67.0 12.6 12.7 13.3 4.6 23.5 16.6 0.7 0.7 161.5 155.7 Income from Financial Operations 3.4 3.3 (35.2) 2.2 4.3 23.4 78.1 20.6 2.4 0.3 (12.2) 10.1 40.7 59.7 Other Income 1.0 0.0 4.7 3.6 4.7 3.0 1.1 (2.0) (0.7) (1.0) 9.0 22.4 19.6 26.0 Operating Expenses (325.0) (326.1) (80.1) (75.3) (85.4) (122.3) (14.1) (14.5) (15.0) (13.3) (40.3) (37.1) (559.8) (588.6) Staff Costs (135.5) (140.1) (43.0) (43.3) (39.5) (77.0) (6.0) (6.4) (8.4) (8.5) (4.1) (8.7) (236.5) (284.0) General Expenses (162.6) (159.5) (25.8) (22.1) (41.0) (40.1) (7.0) (7.0) (5.4) (4.0) (31.5) (23.4) (273.3) (256.2) Depreciation (26.9) (26.5) (11.2) (9.8) (4.9) (5.1) (1.1) (1.1) (1.1) (0.8) (4.8) (5.0) (50.0) (48.4) Impairment Losses (436.3) (166.0) 58.3 (357.2) (85.4) (82.8) 0.0 0.0 0.0 0.0 0.0 0.0 (463.4) (605.9) Profit / (Loss) before tax (221.9) 71.3 328.3 (10.7) (29.2) (37.0) 121.7 (31.9) 16.6 10.2 (40.7) (2.3) 174.8 (0.3) Note: P&L numbers restated for the sale of Serbia 44
IV Results I Retail Business Unit ( million) Q2 2017 Q1 2017 Q4 20161 Q3 2016 Q2 2016 1 Operating Income 269.8 269.6 276.7 279.7 280.2 Net Interest Income 242.3 241.3 247.0 248.7 250.5 Net fee and Commission Income 25.6 25.8 27.8 29.3 27.9 Income from Financial Operations 1.4 1.9 1.9 1.7 1.8 Other Income 0.5 0.5 - - - Operating Expenses (166.4) (158.7) (170.8) (167.3) (166.3) Staff Costs (68.6) (67.0) (70.1) (69.6) (70.6) General Expenses (84.3) (78.2) (87.2) (84.4) (82.5) Depreciation (13.5) (13.4) (13.5) (13.4) (13.1) Impairment losses (304.2) (132.1) (21.5) (164.7) (96.7) Profit / (Loss) before tax (200.7) (21.2) 84.3 (52.3) 17.2 RWA e 20,090 20,053 20,108 20,074 19,882 1 P&L numbers restated for the sale of Serbia 45
IV Results I Commercial & Corporate Business Unit ( million) Q2 2017 Q1 2017 Q4 20161 1 Q3 2016 Q2 2016 Operating Income 157.3 192.7 205.2 206.7 208.9 Net Interest Income 160.9 159.7 166.6 169.2 172.5 Net fee and Commission Income 30.2 29.7 35.3 34.0 33.3 Income from Financial Operations (36.1) 0.9 1.4 1.2 1.3 Other Income 2.4 2.3 2.0 2.3 1.9 Operating Expenses (40.9) (39.2) (39.7) (38.5) (37.9) Staff Costs (21.7) (21.4) (22.1) (21.8) (21.9) General Expenses (13.3) (12.6) (12.4) (11.6) (11.1) Depreciation (5.9) (5.3) (5.3) (5.0) (4.9) Impairment losses 136.7 (78.4) (124.8) (54.5) (204.4) Profit / (Loss) before tax 253.2 75.1 40.7 113.8 (33.4) RWA e 18,381 18,378 18,063 18,199 18,459 1 P&L numbers restated for the sale of Serbia 46
IV Results I Asset Management Business Unit ( million) Q2 2017 Q1 2017 Q4 20161 Q3 2016 Q2 2016 1 Operating Income 16.4 15.1 13.3 11.9 11.8 Net Interest Income 3.1 3.3 3.8 3.3 3.6 Net fee and Commission Income 12.3 11.2 9.6 9.4 8.5 Income from Financial Operations 1.7 0.7 1.0 0.1 0.1 Other Income (0.7) 0.0 (1.1) (0.9) (0.4) Operating Expenses (7.4) (7.6) (6.8) (6.6) (6.7) Staff Costs (4.3) (4.1) (4.0) (4.1) (4.2) General Expenses (2.9) (2.5) (2.5) (2.1) (2.1) Depreciation (0.1) (1.0) (0.4) (0.4) (0.4) Impairment losses - - - - - Profit / (Loss) before tax 9.1 7.5 6.6 5.3 5.1 RWA e 303 283 293 308 315 1 P&L numbers restated for the sale of Serbia 47
IV Results I Investment Banking & Treasury Business Unit ( million) Q2 2017 Q1 2017 Q4 20161 1 Q3 2016 Q2 2016 Operating Income 87.7 48.0 55.8 (2.0) 13.6 Net Interest Income 26.8 16.5 8.3 (6.1) (16.8) Net fee and Commission Income 10.8 2.4 2.1 1.6 2.3 Income from Financial Operations 50.2 27.9 43.5 0.2 26.3 Other Income (0.1) 1.2 2.0 2.3 1.8 Operating Expenses (7.1) (7.0) (7.8) (7.4) (7.3) Staff Costs (3.1) (2.9) (3.4) (3.2) (3.3) General Expenses (3.5) (3.5) (3.9) (3.7) (3.5) Depreciation (0.6) (0.6) (0.5) (0.5) (0.5) Impairment losses - - - - - Profit / (Loss) before tax 80.6 41.0 48.0 (9.5) 6.3 RWA e 4,226 4,684 4,891 4,993 5,198 1 P&L numbers restated for the sale of Serbia 48
IV Results I SE Europe Business Unit ( million) Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 2 2 Operating Income 71.6 70.1 73.3 80.5 91.6 Net Interest Income 59.4 60.7 63.6 65.1 65.9 Net fee and Commission Income 6.5 6.1 5.8 6.6 6.4 Income from Financial Operations 2.2 2.1 0.1 6.1 18.2 Other Income 3.5 1.1 3.8 2.8 1.2 Operating Expenses 1 (43.9) (41.6) (49.2) (42.4) (44.8) Staff Costs 1 (20.1) (19.4) (19.9) (19.4) (21.0) General Expenses (21.4) (19.6) (26.5) (20.6) (21.2) Depreciation (2.4) (2.5) (2.7) (2.5) (2.6) Impairment losses (49.1) (36.3) (152.0) (39.0) (49.0) Profit / (Loss) before tax 1 (21.4) (7.8) (127.9) (0.9) (2.2) RWA e 5,387 5,904 6,223 6,345 6,652 1 Including VSS Cyprus of 31mn in H1 16 2 P&L numbers restated for the sale of Serbia 49
IV Results I Other Business Unit ( million) Q2 2017 Q1 2017 Q4 2016 Q3 2016 1 Q2 2016 1 Operating Income (6.2) 5.8 (22.2) 10.5 20.8 Net Interest Income 1.1 0.9 0.9 0.9 1.2 Net fee and Commission Income 0.3 0.4 0.6 0.2 0.1 Income from Financial Operations (12.2) 0.0 (31.9) (0.1) 9.2 Other Income 4.5 4.5 8.2 9.5 10.4 Operating Expenses (15.1) (25.2) (81.1) (19.1) (24.6) Staff Costs (1.7) (2.3) (10.2) (7.7) (5.5) General Expenses (11.2) (20.3) (68.7) (8.9) (17.6) Depreciation (2.2) (2.6) (2.3) (2.5) (1.5) Impairment losses 0.0 0.0 (5.6) (0.0) 0.0 Profit / (Loss) before tax (21.3) (19.4) (108.9) (8.6) (3.7) RWA e 1,297 1,102 1,109 1,149 1,126 1 P&L numbers restated for the sale of Serbia 50
IV Glossary Reconciliation of key Management s definitions with terms in Annual report (In accordance with Law 3556/2007) Terms Definitions Abbreviation 1 Accumulated Provisions or Loan Loss Reserve Accumulated Impairment Allowance, as disclosed for credit risk monitoring purposes (note 41) LLR 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 Impairment losses or Loan Loss Provisions Impairment losses and provisions to cover credit risk LLPs 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 Recurring OPEX 7 Total Operating Expenses Total expenses Total OPEX Alternative Performance Measures Definitions Abbreviation Common Equity Tier 1 ratio (Fully-loaded) 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) FL CET 1 ratio Common Equity Tier 1 ratio (Phased-in) 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 (RWAs) CET1 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 Forborne Exposures Forborne exposures are debt contracts in respect of which forbearance measures have been extended. Forbearance measures consist of concessions towards a debtor facing or about to face difficulties in meeting its financial commitments ( financial difficulties ) Forborne Forborne Non Performing loans (under EBA) 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 have been reclassified from the forborne FNPEs 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 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 Gross Loans (3) at the end of the period less Accumulated Provisions (1) at the end of the period Non Performing Exposures 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 past-due amount or of the number of days past due NPEs Non Performing Exposure Coverage Accumulated Provisions (1) divided by Non Performing Exposures (NPEs) at the end of the reference period 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 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 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 NPLs Non Performing Loan Coverage Accumulated Provisions (1) divided by Non Performing Loans (under IFRS) at the end of the reference period 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 Accumulated Provisions (1) including the value of the associated collaterals divided by Non Performing Loans (under IFRS) at the end of the reference period NPL Total Coverage Overall Capital Requirement 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 OCR 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 Risk Weighted Assets 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 RWAs Tangible Book Value per share 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 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 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 Capital Requirement 1024/2013/EU TSCR Unlikely to pay (under EBA) 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) UtP 51
Alpha Bank Contacts Vassilios Psaltis Lazaros Papagaryfallou General Manager CFO Executive General Manager vep-office@alpha.gr lap-office@alpha.gr +30 210 326 2181 +30 210 326 4017 Dimitrios Kostopoulos Elena Katopodi Manager Assistant Manager Investor Relations Division Investor Relations Division dimitrios.kostopoulos@alpha.gr elena.katopodi@alpha.gr +30 210 326 4082 +30 210 326 4184 Stella Traka Senior Investor Relations Officer stella.traka@alpha.gr +30 210 326 4182 E-mail : ir@alpha.gr Tel : +30 210 326 4082 +30 210 326 4010 +30 210 326 4185 ALPHA BANK 40, Stadiou Street, 102 52 Athens, Greece Internet Reuters Bloomberg : www.alpha.gr : ACBr.AT (shares), GRALFAw.AT (warrants) : ALPHA GA (shares), ALPHAW GA (warrants) 52