Q1 2014 Results Fully recapitalized bank in a recovering environment May 29, 2014
Table of Contents Pages I. First Quarter 2014 Result Highlights 3 II. Asset Quality Review exercise considerations 19 III. Appendix 20 1. Financial Results Overview 21 2. Emporiki Integration Update 26 3. International Operations 29 4. Macroeconomic Overview 35 5. Financial Overview 40 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. 9M FY Q1 2013 2014 Results 2
I. First Quarter 2014 Result Highlights Q1 9M FY 2013 2014 Results 3
Key highlights Macroeconomic recovery supported by restoration of the government primary balance and Confirmed resulting in optimistic growth forecasts Macroeconomic Greece s return to the capital markets paves the way for further liquidity idit into the system along Recovery with improved credit rating Greek Government Bond (GGB) yields continue their decline to normalized levels Highly successful capital increase First bank to complete its capital increase in 2014, raising 1.2 billion common equity on a non pre-emptive basis First bank to pay back Government preference shares (April 2014) Wider free float with diversified shareholders base Q1 14 Operating Performance Update More liquid balance sheet due to continued deleveraging g and reduced Eurosystem reliance Pre-provision income continues to rebuild supported by funding costs and efficiency gains Ongoing synergy realisation from Emporiki acquisition and further substantial cost benefits to flow through Continued stabilisation of asset quality and limited NPL formation Strong capital base, fully prepared for AQR test CET-I ratio of 15.6% and pro-forma fully loaded Basel III Common Equity Tier I ratio of 12.0% Following the capital increase covering BoG stress tests requirement, the Bank s capital position incorporates significant buffers ahead of the AQR and stress tests results 9M FY Q1 2013 2014 Results 4
Solid macroeconomic fundamentals paving the way for growth, supported by the Sovereign return to capital markets and improved activity Solid signals of improving macroeconomic fundamentals Primary balance evolution (% GDP) Central Government Jan Feb Mar (0.2%) Apr Full year¹ 02% 0.2% 0.5% 0.3% 1.1% 0.3% 0.8% 0.3% 0.6% 2013 2014 25% 2.5% 2013 2014E 2015E 2016E Real GDP growth (3.9%) +0.6% +2.9% +3.7% Source: Primary Balance: Bank of Greece, Ministry of Finance, State General Accounting Office, Real GDP growth: IMF ¹ Full year 2014 based on Budget. Figures from April 2013 onwards based on provisional data Greece s return to the capital markets Key terms of the bond Issuer Hellenic Republic Issued 10 April 2014 Size 3.0bn Rate 4.750% Maturity 5 years Renewed access to the international capital markets after 4 years and an important milestone for Greece's economic progress This transaction suggests the end of Europe's sovereign debt crisis The timing of the offering took advantage of a very constructive market tone for periphery p assets and this year's sharp rally in Greece's existing bonds, which were trading with record low yields at announcement, and the transaction follows the approval of a new 8.3 billion aid payment on April 1st, as well as Moody's rating affirmation on April 4th The transaction was very successful in broadening and diversifying Greece s investor base and the strong market reception provided a very positive impact on Greece s PSI bond curve, compressing by 25-30bps from announcement 10year Greek government benchmark bond yield evolution Expected strong recovery in tourism sector for summer 2014 14% March 2012 (peak) 33% Continued improvement 175 Tourism turnover index (Accommodation and food service activities) Growth rate (year-on-year) +36% 148 >200¹ 12% 10% 8% +6% 6% April 2010 May 2014 7.0% 60% 6.0% 4% Mar-10 Jan-11 Nov-11 Sep-12 Jul-13 May-14 Source: Dataquery, Bank of Greece, Elstat, data as of 09 May 2014 Q3 2007 2008 2009 2010 2011 2012 2013 2014 Source: Bank of Greece, Elstat ¹ Data following Dec-13 based on illustrative extrapolation assuming same QoQ growth as Q4 13 (+36%) 9M FY Q1 2013 2014 Results 5
Q1 2014 Performance and Key Figures Balance Sheet ( billion) 31/03/14 31/12/13 Assets 72.8 73.7 Net Loans 50.7 51.7 Deposits 41.8 42.5 Eurosystem Funding 1 12.0 13.7 Shareholders Equity 9.5 8.3 Tangible Equity (TE) 2 8.3 7.1 RWAs e 54.2 3 50.9 CET I CT I ratio 4 15.6%3 16.1% TE / Tangible Assets 11.4% 9.7% TBV / share ( ) 065 0.65 065 0.65 RWAs e/ Tangible Assets 75% 3 69% Income Statement ( million) Q1 2014 Q1 2013 p.f. Change % Operating Income (excl. income from financial operations) 579.5 421.7 37.4% Operating Expenses before Integration & Extraordinary Costs 5 (329.6) (349.4) (5.7%) Pre Provision Income (excl. income from financial operations & extraordinary costs 5 ) 249.9 72.3 245.7% Impairment Losses (395.1) (504.9) (21.8%) Profit/ (Loss) after income tax (94.1) 3,513.8 6 Profit/ (Loss) attributable to shareholders (94.2) 3,513.7 6 Net Interest Margin / Avg Assets (MARGIN) 2.6% 1.8% Cost to Income ratio (excluding income from financial operations, integration & extraordinary costs) 56.9% 82.9% 1 Excluding EFSF bonds used as collateral at the ECB 2 Tangible Equity = Total equity goodwill intangibles minorities hybrids preference shares 3 Pro forma for the repayment of preference shares 4 31/3/2014 Common Equity Tier I (Basel III); 31/12/2013 Core Tier I (Basel II) 5 Integration Costs of - 5.3mn in Q1 2014 and - 0.6mn in Q1 2013 p.f.. Extraordinary costs of 0.4 mn for Q1 14 and - 2.7bn in Q1 13 p.f. 6 Including negative goodwill 3,283.1 from Emporiki transaction L / D (Net Loans / Deposits) - Group 121% 122% PPI of 250 million, up +6.9% qoq, on the back of reduced cost of funding and L / D (Net Loans / Deposits) - Greece 116% 117% lower operating expenses Eurosystem Funding / Assets 2 18% 20% NPL ratio 33.3% 32.7% Coverage 56% 54% Tangible equity of 8.3 billion, pro-forma for the repayment of preference shares Greek net loans to deposits reduced to 116% and Eurosystem Funding / Assets of reduced to 18% signaling improvement in Group liquidity and less reliance on expensive sources of funding LLRs / Gross Loans 19% 18% Provisioning / Gross Loans at 19% increasing cash coverage to 56% 9M FY Q1 2013 2014 Results 6
Common Equity Tier I ratio stands comfortably at 15.6% following first implementation of Basel III Common Equity Tier I (CET I) Ratio Build up CETI capital ( mn) 8,177 16.1% +1,200 (940) 237bps (186bps) 8,437 16.6% (20bps) 20bps (67bps) (33bps) 8,455 15.6% Basel II CET I 31/12/2013 Capital Increase Prefs Repayment Pro forma Basel II CET I for recap. and prefs repayment Q1 2014 Result AFS Unrealised Gains / Other Basel III Impact from DTA Cresit Risk Impact (including Basel III) Basel III CET I 31/3/2014 Group RWAs development ( billion) 6.4% 50.9 2.1 54.2 1.2 2.1 1.1 3.1 1.1 3.1 46.7 47.9 CET Ratio at 15.6% pro-forma for the repayment of preference shares RWAs increase by 2.1bn due to Basel III treatment t t of DTA Dec. 13 Basel III impact from DTA Credit Risk Impact (incl. Basel III) Mar. 14 e 1 Credit Risk Operational Risk Market Risk Basel III_DTA Credit Risk Impact (incl. Basel III) 1 Pro forma for the repayment of preference shares 9M FY Q1 2013 2014 Results 7
Strong Ongoing Recovery in PPI driven by cost reduction during the quarter PPI build-up and impact from trading and extraordinary items ( million) Group NII decomposition ( million) +6.9% 476 465 17 8 471 6 34 42 (5) (11) (15) (4) 234 (11) (13) 250 287 1 2 Q4 13 Δ NII Δ Fees Δ Other Δ OPEX Q1 14 Trading Income 1 Excluding trading income and 78.2mn of integration and extraordinary costs 2 Includes other income and calendar effect of 11mn Integration Costs Reported Q1 14 Q4 13 Calendar Effect Q4 13 Δ Loans Δ Deposits Δ Funding Other Q1 14 Improving operating trends PPI trajectory towards off-setting provisions ( million) 530 556 597 580 ( million) 505 479 490 449 395 422 349 364 346 340 330 3 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 216 234 250 184 72 Q1 13 3 Q2 13 Q3 13 Q4 13 Q1 14 Operating Income excl. Trading Operating Expenses excl. one-offs Ιmpairment losses on credit risk PPI excl. Trading 3 Emporiki is included from January 1, 2013 on a pro forma basis 9M FY Q1 2013 2014 Results 8
The run rate of Cost of Funding & Operating Expenses in Q1 2014 is supportive of further PPI Improvement Cost of ffunding Operating Expenses 1 ( million) 226 ~350mn annualised benefit ( million) 350 ~80mn annualised benefit 330 Eurosystem Funding 54 (54) (31) 141 23 Non staff 172 (11) (9) 163 Deposits 172 118 Staff 178 167 Average 2013 Deposits Eurosystem Funding Q1 2014 Average 2013 Staff Costs Savings Non Staff Savings Q1 2014 1 Excluding integration and extraordinary costs Δ between Maturing Deposits & Renewals (EUR Individual Time Deposits) 0.10% 0.18% 0.45% 0.60% 1.05% 1.31% 1.29% 1.18% 1.13%1.15% 0.93% 0.75% 0.43% 0.52% 0.35% 0.30% Deposits repricing coupled with lower Eurosystem funding cost already effected will add c. 350mn of NII in 2014 Phasing in of 2013 cost optimisation initiatives will improve the top line by c. 80m, while additional synergies of c. 20mn are expected to unfold during the current year A VRS scheme will bring additional benefits in recurring PPI to the tune of 100mn 9M FY Q1 2013 2014 Results 9
Negative Deposit Contribution to NII lessens, driven by continuously decreasing cost of funding as deposits base remains stable Group deposits base remains stable NII Deposits Contribution ( billion) (0.5%) 42.0 42.0 42.0 42.5 41.8 ( million) + 84mn (202) (188) (163) (137) (118) Mar. 13 Jun. 13 Sep. 13 Dec. 13 Mar. 14 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 1 1 Changes to 115mn following adjustment for calendar effect Group Deposit Spread Evolution (bps) 12 12 13 16 23 (110) (127) (146) (169) (187) +77bps Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Total Deposits Spreads 1M Euribor Curve Deposit Spreads 10 (5) (25) (18) (29) (3) (16) (36) (54) (70) (241) (230) (266) (300) (335) Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Sight and Savings - Greece SE Europe Time Deposits - Greece 9M FY Q1 2013 2014 Results 10
Large corporates access to debt capital markets has accelerated deleveraging Corporate and SBLs lending evolution of Alpha Bank Large corporates took the advantage of the YoY change (%) improving market conditions, resuming access to Mar.13 - Mar.14 the capital market since 2013 Total Greece 54.0 53.4 52.8 52.4 52.0 40.0 (3.7%) 35.0 30.0 This shift to the debt capital markets has affected 25.0 the overall credit to corporations in Greece Business Lending Greece 29.6 29.3 29.0 28.8 28.5 Mar. 13 Jun. 13 Sep. 13 Dec. 13 Mar. 14 20.0 15.0 (3.8%) 10.00 5.0 0.0 However, economic recovery will accelerate new demand for new healthy credit, which will be addressed by the banking sector going forward. Credit to Corporations in Greece Company Amount Issued Maturity Coupon Thou usands 150 140 130 132.5 130.0 139.7 135.55 123.7 YoY change (%) Mar.13 - Mar.14 (6.6%) 2013 TITAN 200 1/17 8.75% OTE 700 2/18 7.875% Fi Frigoglass 250 5/18 8.25% Hellenic Petroleum 500 5/17 8.0% Coca Cola HBC 800 6/20 2.375% 120 111.3 110 115.5 115.0 Intralot 325 8/18 9.75% S&B 275 8/20 9.25% Hellenic Petroleum $ 400 5/16 4.625% 100 90 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Apr-14 2014 Intralot 250 5/21 6.0% Motor Oil 350 5/19 5.125% Total (in Euro ml equivalent) 3,950 Source: Bank of Greece (Non-financial corporations, Insurance, other intermediaries and sole proprietors) 9M FY Q1 2013 2014 Results 11
Loan Contribution to NII Affected by Deleveraging as spreads stabilize NII Loans Contribution Gross Balances at quarter end Loans Spreads - Group (bps) ( million) ( 29 mn) 607 629 619 606 578 1 450 461 458 454 450 64.8bn 62.3bn Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 1 Changes to 591mn following adjustment for calendar effect Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Lending Spreads (bps) 981 961 940 925 923 881 875 852 843 840 423 450 464 457 454 385 383 402 420 412 261 264 259 255 254 Consumer Credit - Greece Small Business Loans - Greece Medium & Large Business - Greece SEE Mortgages - Greece Loans spreads broadly unchanged qoq and at same levels as a year ago Lower loan volumes by 2.5bn yoy, impact NII negatively Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 9M FY Q1 2013 2014 Results 12
A 9% Reduction in Staff Expenses brings additional gains Staff Expenses ( million) (8.7%) (16mn) FTE attrition and phasing in of the new collective labor agreement drives staff expenses lower 183 (4) (12) 179 167 167 Further initiatives on remuneration policies effective as of April 2014 are expected to further improve the top line 1 Q1 13 FTE related Salary related Q1 14 1 Emporiki is included from January 1, 2013 on a pro forma basis Still the largest part of the synergy potential following the Emporiki acquisition, will be captured through the VRS Employees and Branches evolution Employees Branches 17,785 (5.0%) -897 2 16,888 (13.5%) -165 2 6,366 1,226 5,740 493 1,061 430 11,419 11,148 733 631 Mar. 13 Mar. 14 Mar. 13 Mar. 14 Greece Abroad 2 Includes reduction due to the Ukrainian subsidiary sale (355 employees and 23 branches as of Mar. 13) 9M FY Q1 2013 2014 Results 13
NPL formation deceleration pursues encouraging trends Total NPL formation Business ( million) 1,167 Last 12-m formation (1 year ago) + 3,973mn 1,076 787 943 (69%) NPL ratio ( million) NPL ratio 33.3% 33.3% Last 12-m formation + 1,213mn 791 546 602 548 471 413 322 228 241 171 (352) Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 incl. Emporiki Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 incl. Emporiki (76) Mortgages Consumer Credit ( million) NPL ratio ( million) NPL ratio 29.9% 43.5% 409 378 56 295 282 326 156 151 260 235 187 88 (222) (31) (21) (54) Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 incl. Emporiki incl. Emporiki 9M FY Q1 2013 2014 Results 14
resulting in an increased coverage ratio of 56% Loan Loss Provisions 1 Group NPLs and cash coverage evolution (bps) 438 ( million) 312 298 308 285 253 52% 52% 51% 51% 54% 56% 497 505 479 490 449 395 29% 30% 32% 33% 33% 33% Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Impairment Charge 1 Including Emporiki since February 2013 Cost of Risk NPL ratio Cash coverage ratio Impairment Allowances and Coverage Group NPLs Coverage and Restructured loans ( billion) Coverage Coverage by segment, Group level Restructured loans of 7.4bn International Greece 20.7 2.7 18.0 11.6 1.7 9.9 56% 62% 118% 62% 126% 61% 56% 65% 111% 80% 31% 101% 26% 74% 55% Group Business Mortgages Consumer Loans Credit 16% 29% 55% Business Mortgages Consumer NPLs Provisions Stock Cash Coverage Collateral Coverage 9M FY Q1 2013 2014 Results 15
Group loan to deposit ratio rate of decrease to stabilize as deposits level flattens in line with market observations Alpha Bank Customer Deposits vs. Greek System Deposits Loan to Deposit Ratio normalizing ( billion) Group deposits 164.1 42.0 1% Market Share gain 161.1 41.8 142% 139% 130% 127% 125% 122% 121% 126% +1.5% 35.0 35.6 122% 120% 117% 116% Mar. 13 Mar. 14 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Alpha Bank Customer Deposits Greek System (Bank of Greece) Group Greece Greek System Deposits (Bank of Greece) ( billion) Liabilities Mix ( billion) 238 210 174 ( 76 bn) 161 163 161 Total Equity Time Deposits Core Deposits Eurosystem Funding % total 13% 37% 20% 18%¹ a b c Dec. 09 Dec. 10 Dec. 11 Dec. 12 Dec.13 Mar.14 4.5 0.7 9.5 27.0 14.8 0.6 15.7 72.8 1 Excl. EFSF bonds used as collateral at the ECB; (a) other (b) Debt securities, (c) Repo with EFSF bonds 9M FY Q1 2013 2014 Results 16
Decreasing Funding Cost on the back of lower volumes, lower rates and improved mix between ECB and ELA funding Breakdown of Eurosystem Funding Utilisation Eurosystem Funding / Assets 1 ( billion) ELA 20% 17.2 3.5 (0.9) 0.6 (1.2) 18% 15.7 15.6 0.9 No ELA ECB 13.7 14.8 15.6 1 Excluding EFSF bonds used as collateral at the ECB Dec. 13 Loans Deleveraging Deposits Decrease Capital Increase Mar. 14 15/05/2014 Central Banks Collateral (cash values) ( billion) Usage Pillar III EFSF Bonds Bonds Pillar II Loans 14.8 14.8 3.7 2.5 7.6 0.2 0.8 ECB Collateral 0.9 18.5 23 2.3 2.0 0.02 14.2 Bonds ELA Collateral Covered Bonds Secutitisations Loans Forthcoming Actions Shipping Loans Portfolio Financing Covered Bonds / Securitizations Repos Capital Markets Access 9M FY Q1 2013 2014 Results 17
II. Upcoming Asset Quality Review considerations Q1 9M FY 2013 2014 Results 18
Alpha Bank has significant capital buffer and is well provisioned for the AQR exercise Large capital buffers ahead of AQR and stress tests results ( million) Base case Adverse case 8,455 4,333 +4,122 8,455 2,979 +5,476 When considering fully loaded Basel III capital level versus minimum capital requirement under the AQR stress test methodology, Alpha Bank maintains i significant ifi buffer: CET-I capital¹ CET-I capital @ 8.0% (Base) Excess Capital CET-I capital¹ CET-I capital @ 5.5% (Adverse) Excess Capital North of 4 billion under the Base Case North of 5.4 billion under Adverse case Phased-in Basel 3 CET-1 ratio (Mar-14) European banks benchmarking 17.9 17.7 7 17.7 7 Median CET1 ratio: 11.0% Alpha Bank CET I ratio at 15.6% vs. European median at 11% Peer 1 Peer 2 (Gr) Peer 3 (Gr) Alpha Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15 Peer 16 Peer 17 Peer 18 Peer 19 Peer 20 Peer 21 Peer 22 Peer 23 15.6 14.5 14.3 13.2 12.3 11.9 11.3 11.1 11.0 10.9 10.8 10.7 10.7 10.7 10.6 10.4 10.4 10.0 9.8 9.6 9.4 9M FY Q1 2013 2014 Results 19
III. Appendix Q1 9M FY 2013 2014 Results 20
Group Loans Group Loans Group Retail Loans ( billion) ( billion) (3.8%) 64.8 62.3 0.6 0.5 10.3 98 9.8 (4.2%) Other (3.5%) 34.9 33.7 (2.4%) 21.6 21.1 Mortgages 54.0 52.0 (3.7%) SE Europe Greece (6.1%) 7.4 6.9 5.9 4.1% 5.7 Consumer Credit Small Business Loans Mar. 13 Mar. 14 Mar 13 Mar. 14 SEE Loans Group Wholesale Lending ( billion) ( billion) 10.3 (4.2%) 9.8 (4.3%) 5.2 (1.0%) 5.1 Cyprus Balkans 29.9 28.6 5.1 (7.5%) 4.7 Mar. 13 Mar. 14 Mar. 13 Mar. 14 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 21
Retail Lending Mortgage Balances - Greece Consumer Credit Balances - Greece ( billion) ( billion) (3.0%) 6.4 (5.1%) 6.1 1.2 (8.9%) 1.1 18.0 17.4 (4.2%) 52 5.2 50 5.0 Credit cards Consumer loans Mar. 13 Mar. 14 Mar. 13 Mar. 14 Small Business Lending Balances - Greece ( billion) 3.6% Strict underwriting resulted in housing loans rejection rate to reach 56% 5.8 5.6 New production mortgages LTV at 54%, total book average LTV at 65% Consumer loan rejection rate at 74% Mar. 13 Mar. 14 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 22
Corporate Banking Medium & Large Business Loans Greece Wholesale Loans Portfolio Structure Group ( billion) (3.7%) Other, 13.2% Wholesale Loans 28.6bn Services, 7.0% Industry, 22.0% 23.8 22.9 Real Estate, 8.2% Shipping, 6.3% Trade, 20.8% Tourism, 6.5% Mar. 13 Mar. 14 1 Transportation, 1.1% Construction, 14.9% Shipping Loans Balances Shipping Loans Portfolio Structure ( billion) 0.75 0.77 0.76 0.78 0.73 0.73 Dry Bulk 42% Capesize 6% Yachts 1% Passenger 11% Containers 5% Duration of loan portfolio at 7 years NPL ratio at 9% 1.6 1.5 1.3 13 1.3 1.7 1.7 1 1 Dec. 10 Dec. 11 Dec. 12 Mar. 13 Dec. 13 Mar. 14 Loans Balances USD/EUR Panamax 15% Handy max/ Handy size 21% VLCC 8% Product Tankers 15% Panamax Aframax 7% 1% Suezmax 10% Tankers 41% 1 Includes Emporiki balances 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 23
Deposit Evolution Breakdown Customer Assets Deposits Evolution Group ( billion) ( million) Investment Balances 44.3 1.4 2.2 0.7 1.1 0.1 0.2 45.4 Core Deposits 13,237 1,175 631 787 (1,009) 14,821 Liquidity 28.8 27.0 Mar-13 Q2 13 Q3 13 Q4 13 Q1 14 Mar-14 Time Deposits 28,805 366 27,021 Transaction Balances 13.2 14.8 (1,215) (666) (269) Mar. 13 Mar. 14 Sight & Savings Deposits On Balance Sheet Time Deposits Money Morket Mutual Funds Private Banking Other Mutual Pi t B ki Funds Mar-13 Q2 13 Q3 13 Q4 13 Q1 14 Mar-14 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 24
Wealth Management Evolution According to Developments in the Economic Environment Alpha Private Bank Asset Management ( million) 3,695 ( million) 1,689 2,880 2,917 276 2,303 1,610 1,695 868 129 959 131 1,106 1,177 1,124 1,297 676 750 307 93 98 95 Mar. 12 Mar. 13 Mar. 14 Discretionary Advisory Execution Only 63 78 Mar. 12 Mar. 13 Mar. 14 Other AUM Non Money Market Mututal Funds Money Market Mutual Funds 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 25
The Integration and Restructuring Program is advancing Physical network optimization Central office space usage optimization IT Integration and cost optimization Procurement spend optimization Initiatives/ activity Current status 106 branches closed since July 2013 24 of 106 branches closed in Q1 14 11 additional branches to be closed in Q2 14 Q2 14 16.500 m 2 of central office space released since July 2013 2.500 m 2 of additional central office space released in Q1 14 Release of 100% of rented space, fully utilizing owned capacity year end 2014 Mortgage Loans migration SBL Corporate loans migration 165 branch rent contracts renegotiated since July2013 with an average decrease of 17% 65 out of 165 branch rent contracts renegotiated in Q1 14 Central Units Office rent cost reduction by 15% on track Maintenance renegotiations resulting to additional 10% decrease quarter on quarter 20% Insurance cost reductions on a quarter on quarter basis Cash in transit rationalization delivered a decrease of 20% Completed On track end of June 2014 Retail Back- Office Consolidation Wholesale Middle-Office Centralization LGs and Trade Finance operations Small Business processing centralization Collateral Management consolidation Branch Help Desk model implementation: ti pilot phase Centralization of Mortgages, Personal Lending processing, Contracts Archiving & Digitalization Corporate loans/ Back-Office related activities centralization Final Design of Wholesale Middle-Office centralization target operating model Implementation of the Wholesale Middle-Office operating model To start: June 2014 June 2014 To start: July 2014 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 26
and enhanced by transformational initiatives, changing the Bank s Business model from product-centric to Customer-centric Strategic design of the new Retail Operating Framework adopting a customer-centric centric approach Retail Operating Framework Transformation Program initiation within May Segment approach Multichannel Strategy Products CRM Productcentric 3 Basic segments (Affluent-SB-Mass) Fully activated client book Targeted sales strategy & service model Physical Network optimization (structure & setup) Enhancement of online and mobile banking Channel Integration aiming to serve Customers accordingtotheir their preferences Product rationalization Segment based product development & pricing CRM to support new Retail Banking strategy Better customer Knowledge and management. Targeted approach leading to sales efficiency Customercentric Retail Segmentation & Portfolio Strategy Customer Assignment at Branch Level (1st phase) at Advisor Level (2 nd phase) CRM Analytics Analytics capability available for CRM (tools and data) Value based and behavioral segmentation Analytics model for deposits and pre-collection Sales force effectiveness Delivery of Front End tool that provides: 360 o Customer view Targeted sales opportunities management Reports and Dashboards (eg. Campaigns, target achievement monitoring) Multi-channel Actions Contact opportunities: Multi channel Sales Informative Customers in delay 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 27
maintaining synergies momentum in 2014 Cost Synergies million, (% of overall target) 119 (66%) 180 (100%) 54 (30%) 7.3 (4%) Total for 2013 Q1 2014 Remaining Target 7.3 million synergies secured in Q1 2014 driven by: G&A cost rationalization activities Completion of IT core systems integration program Remaining 2014 synergies will require focus on: Implementing staff related cost initiatives Driving branch network rent reduction through targeted high value renegotiations 9M 2013 Results FY 2013 Results Q1 2014 Results 28 Q1 2014 Results Integration International Macro Financials
International Presence Focused On Two Markets Alpha Bank Mar 14 loan book International loan portfolio split Greece 83% International 17% Romania 28% Other 22% Cyprus 50% Focused international operations on two large markets Cyprus and Romania essentially representing c.80% of international business on average Total = 62.3bn Alpha Bank Mar 14 PPI International 17% Greece 83% Total = 10.4bn International PPI breakdown Other Cyprus 20% 49% Business focus on balancing operations which drove loan portfolio deleveraging from 11.7bn in 2010 to 10.4bn in 2014 Romania 31% Total = 0.3bn Total = 0.05bn05bn Note: Alpha Bank loan book split based on gross loans; Alpha Bank PPI split adjusted for integration costs and extraordinary costs 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 29
With Good Prospects as Situation Improves Given Solid Position Cyprus and Romania operations focus ( million) Cyprus¹ Romania Operations in Cyprus represent the largest franchise of Alpha Bank outside Greece, with 7.8% market share in gross loans as of March 2014 Gross loans 5,131 2,874 Operations in Romania, where Alpha Bank has a Δ% yoy (1.0%) (5.1%) 5.7% market share as of March 2014, generated 16mn PPI, a 14.2% increase yoy Loans ms m.s. 78% 7.8% 57% 5.7% Loans split Mortgages Businesses Consumer 47% 6% 47% 60% 29% 11% Other international operations ( million) Bulgaria Serbia Albania FYROM NPL ratio 37.0% 14.4% Deposits 2,216 1,447 Δ% yoy (16.0%) 6.6% PPI 1 24 16 Branches 33 149 Employees 966 2,023 Loans 617 760 370 68 Δ% yoy (14.0%) (1.3%) (1.0%) (2.4%) Loans m.s. 2.2% 4.6% 8.9% 1.7% NPL ratio 26.0% 19.1% 24.4% 27.2% Deposits 426 450 484 84 Δ% yoy 22.1% (23.3%) 6.3% 11.3% PPI 1 5 4 1 0 Branches 86 101 42 18 Employees 768 1,287 390 242 1 Pre O/H allocation 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 30
Situation in Cyprus Has Been Improving on the Back of Implementation of Troika Programme and Stabilizing Banking Sector Key macroeconomic indicators Cyprus banking sector recapitalization overview 2008 2012 2013 2014F 2015F 2020F Real GDP growth 3.6% (2.4%) (5.4%) (4.2%) +0.4% +1.8% Key measures undertaken Disinvestment of the Greek operations of the three largest domestic banks Current progress Completed Nominal GDP ( billions) 17.2 17.7 16.5 15.8 16.2 19.6 Primary Fiscal Balance (% GDP) Current account balance (% GDP) General government debt (% GDP) 3.8% (3.3%) (1.8%) (1.8%) (2.1%) +4.0% (15.6%) (7.0%) (1.4%) +0.0% +0.4% (0.4%) 49% 87% 112% 122% 126% 105% Resolution of the Cyprus Popular Bank (CPB) by transferring assets, insured deposits, interbank liabilities and Emergency Liquidity Assistance (ELA) to Bank of Cyprus (BoC) Exit of BoC from resolution process Hellenic Bank recapitalisation ( 358mm) Coops recapitalisation ( 1.5bn) Completed Completed Completed Completed Unemployment rate 3.7% 11.9% 15.9% 19.2% 18.4% 11.0% Inflation (period average) 4.4% 3.1% 0.4% 0.4% 1.4% 2.0% Imposition of temporary and proportionate restrictions on financial flows ~ Ongoing gradual relaxation in progress Source: Eurostat, European Commission Spring 2014, IMF April 2014 Easing of restrictive measures Mar-13 Aug-13 Nov-13 Feb-14 Cash withdrawal¹ Internal transfers² International transfers³ 300 500 500 500 5,000 300,000 no limitation no limitation 5,000 500,000 1,000,000 1,000,000 Source: Central Bank of Cyprus, Ministry of Finance of Cyprus ¹ Legal person, per day per person; ² Cashless payment for purchase of goods and services w/o mandatory justification to other credit institutions in Cyprus; ³ Cashless payment to institutions abroad, transactions within normal business w/o Committee's approval Natural resources upside IMF: Projections do not incorporate the potential upside from natural gas resources 2011: Announcement of discovery of large gas reserves offshore Cyprus 2015: Potential additional drilling and deep oil test The recession milder than anticipated during 2013, supported by tourist activity and relatively resilient consumption GDP down (4.1%) in Q1 2014 in line to Troika 2014 forecast GDP contraction is expected to stabilize and growth currently forecasted for 2015 Troika programme (2013-2016) under full implementation On 4 March 2014, Cypriot parliament approved a roadmap for privatisations The government has undertaken to raise 1.4bn by 2018 by privatising the electricity authority, EAC, the telecoms utility, CYta, and dthe ecypuspotsaut Cyprus ports authority tywhich manages the ports of Larnaca and Limassol Rating Agencies in April 2014 upgraded Cyprus credit rating status Source: IMF, Research reports, Bloomberg 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 31
Alpha Bank Has Become the Third Largest Bank in Cyprus and Its Smaller But Visible Footprint allows for upside Top Cypriot banks ranking Deposits, billion 12.7 Sight 26% 1 Alpha Bank ranks as the third largest bank in Cyprus in terms of deposits with c. 2.2 billion of Time deposits as of March 2014 of which 73% 73% comprised of time deposits Savings 1% 5.5 1 2.2 Deposits levels have stabilized as deposits outflows halved in Q1 14 compared to outflows in Q4 13 1 December 2013 data Deposit outflows has decelerated Quarterly decrease in deposits, % beg of quarter deposits 1.3% 2.6% 4.5% 8.5% Quarterly decrease in deposits, million 225 109 30 60 Q1'14 Q4'13 Q3'13 Q2'13 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 32
Romania s Macroeconomy Has Already Starting Recovering, and the Banking Sector Maintains Reassuring Capital Buffers and Provisions Recent economic developments 2009 2010 2011 2013 2014 F 2019F Real GDP growth (6.6%) (1.1%) 2.3% 3.5% 2.5% 3.5% On March 2014, Romania and the International Monetary Fund Nominal GDP (RON bn) 501 524 557 631 664 883 (IMF) have agreed on a US$ 4 billion loan to Bucharest, the IMF's new loan to Bucharest is the third one after the beginning of the Inflation (average CPI) 5.6% 6.1% 5.8% 3.2% 2.5% 2.7% financial crisis Growth momentum straightened in Q4 2013,due to favourable Structural fiscal balance (6.8%) (5.1%) (3.5%) (1.7%) (1.8%) (1.8%) trends in the agricultural sector, improving economic and business (% GDP) climate in Europe, increasing absorption of EU funds and a more Current account (% GDP) (4.2%) (4.4%) (4.5%) (1.1%) (1.2%) (3.0%) expansionary monetary policy. GDP up 3.8% yoy in Q1 2014 S&P upgraded Romania credit rating to investment grade status External debt (% GDP) 68.7% 74.3% 75.2% 67.5% 61.1% 44.6% Key rate cutting cycle to continue and to end in Q1 2014 at 3.5%, in Gross int l reserves ( bn) 30.9 36.0 37.3 34.1 31.6 35.9 line with medium-term inflation projections Source: European Commission Spring 2014, IMF April 2014 Banking sector indicators 2008 2009 2010 2011 2012 2013 CAR 13.8% 14.7% 15.0% 14.9% 14.9% 15.0% Tier I ratio 11.8% 13.4% 14.2% 13.9% 13.8% 13.7% NPL ratio 2.8% 7.9% 11.9% 14.3% 18.2% 21.9% RoA 1.6% 0.2% (0.2%) (0.2%) (0.6%) 0.1% RoE 17.0% 2.9% (1.7%) (1.4%) (5.9%) 1.3% Staff cost / operating income 23.4% 20.3% 21.0% 22.1% 26.0% 25.5% FX loans (% total loans) 58% 60% 63% 63% 63% 61% FX deposits (% total deposits) 35% 39% 36% 34% 36% 34% Loan / deposit ratio 122% 113% 118% 119% 115% 101% The Romanian banking sector maintains reassuring capital buffers and provisions The sector has returned to profitability in 2013 following continued losses in 2010-2012 due to the financial crisis Overall sector leverage has decreased by c.8 percentage points since 2011 NPL ratio has increased primarily reflecting the weak economic environment, previously weak credit standards, and difficulties in removing NPLs from bank balance sheets However, provisions were sufficient to cover a comfortable 88.3 percent of NPLs Source: IMF April 2014 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 33
Alpha Bank s Romanian Operations Have Recorded Positive Profitability in the Past Quarters, with Stabilising Loan Portfolio and Increased Liquidity Quarterly profitability has recovered Liquidity has improved Quarterly profit before tax pre o/h, millions Gross loans to deposits 10 6 1 223% 231% 222% 206% 199% Gross loans evolution, million Deposits evolution, million 3,028 3,021 2,995 2,933 2,874 1,358 1,348 1,424 1,447 1,306 (13) (7) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Loan loss provisions have fallen million (45%) NPL coverage has increased NPL ratio 13.6% 14.3% 14.1% 14.4% 14.4% 26 21 NPL coverage ratio evolution 14 75.2% 74.6% 76.6% 76.9% 80.1% 7 9 Q1'13 Q2'13 Q3'13 Q4'13 Q1 14 Q1'13 Q2'13 Q3'13 Q4'13 Q1 14 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 34
The Greek Shoots Of Recovery! GDP Growth Liquidity Conditions Improved 4% 2% 0% -2% -4% -6% 2013: -3.9% 2014: +1.0% 0.6% Economic Sentiment 2.4% 1.8% 105 100 95 90 85 (In bn) 250 200 150 100 Deposits Loans -8% 80 50 ECB funding -10% GDP Alpha Bank forecasts 75 0 Q2 2007 Q1 2008 Q4 2008 Q3 2009 Q2 2010 Q1 2011 Q4 2011 Q3 2012 Q2 2013 Q1 2014 Source: ELSTAT, European Commission, Alpha Bank Forecasts Source: Bank of Greece Labor Market Stabilizing Manufacturing Production 50% 28% 10% 40% 30% Unemployment Rate 26% 50 40 5% 0% 20% 24% 30-5% 10% Number of Employed (% yoy change) Number of Unemployed (% yoy change) 0% -10% 22% 20% 20-10% 10 % yoy growth 6month moving avg. -15% PMI manufacturing, lhs 0-20% Source: ELSTAT Source: ELSTAT 9M FY Q1 2013 2014 Results Q1 2013 2014 Results Integration International Macro Financials 35
Greece - SEE - EU: Comparing Recovery Performance GDP Growth Credit Expansion 6% 4% Greece Bulgaria Romania Serbia EU 27 20% Greece Bulgaria Romania Serbia Euro Area 14.8% 2% 0% -2% -4% -6% -8% 2009 2010 2011 2012 2013 2014f 10% 0% -10% 8.5% 6.4% 4.5% 4.1% 3.5% 4.3% 2.4% 3.8% 1.9% 3.9% 2.5% 1.0% 2.8% 0.2% 1.9% -0.1% 14% 1.4% 08% 0.8% -0.7% -3.9% 0.0% -1.4% -2.3% -1.0% -3.9% -3.1% -4.0% -3.9% -6.5% 2009 2010 2011 2012 2013 2014f Economic Sentiment Competitiveness 110 160 100 130 90 80 100 70 Bulgaria Greece Romania EU 27 70 Bulgaria Greece Romania EU 27 9M FY Q1 2013 2014 Results Q1 2013 2014 Results Integration International Macro Financials 36
SEE: Global Economic Outlook Affected Recovery Bulgaria 15% 10% 5% 0% -5% -10% Remittances Q1 2014 Q1 2013 295 mm 236 mm -15% 2010 2011 2012 2013 2014 500 400 300 200 100 0-100 -200-300 Net FDI (RHS) Industrial Production - YoY% (LHS) Credit Expansion - YoY% (LHS) -400-500 Romania 15% 10% 5% 0% -5% -10% Remittances Q1 2014 Q1 2013 601 mm 637 mm -15% 2010 2011 2012 2013 2014 700 500 300 Net FDI (RHS) Industrial Production - YoY% (LHS) Credit Expansion - YoY% (LHS) 100-100 -300-500 -700 Serbia GDP Growth YoY% Remittances 25% Q1 2014 Q1 2013 500 6% Bulgaria Romania Serbia 391 mm 470 mm 400 300 4% 200 100 2% 0% 0-100 0% -25% 2010 2011 2012 2013 2014 Net FDI (RHS) Industrial Production - YoY% (LHS) Credit Expansion - YoY% (LHS) -200-300 -400-500 9M FY Q1 2013 2014 Results Q1 2013 2014 Results Integration International Macro Financials 37-2% -4% -6% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 2014
SEE: External Balance Improved, But Capital Inflows Remained Weak External Balance Conditions Are Improving In bn 2 Romania Bulgaria Serbia 1 0-1 -2-3 -4-5 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 C/A Net FDI Net Other Gross Official Reserves / Short-Term External Debt 174% 166% Foreign Investors Remain Selective & Cautious In bn Romania 4 3 2 1 0-1 -2-3 -4-5 Q1 2013 Q1 2014 FDI inflows Portfolio Investment Other Capital In bn 1 Bulgaria 139% 143% 0-1 Q1 2013 Q1 2014 Romania Q1 2013 Q1 2014 Bulgaria FDI inflows Portfolio Investment Other Capital 9M FY Q1 2013 2014 Results Q1 2013 2014 Results Integration International Macro Financials 38
SEE: Fiscal Consolidation On Track Amid Low Inflation and Interest Rate Environment Bulgaria Romania 12% 7% 2% -3% 2008 2009 2010 2011 2012 2013 2014 2.12 2.08 2.04 2.00 1.96 1.92 188 1.88 1.84 1.80 15% 10% 5% 0% 2008 2009 2010 2011 2012 2013 2014 4.75 4.50 425 4.25 4.00 3.75 3.50 3.25 3.00 HICP Inflation (LHS) Key Policy Rate (LHS) BGN per EUR (RHS) HICP Inflation (LHS) Key Policy Rate (LHS) RON per EUR (RHS) Serbia 20% 120 General Government Balance as % of GDP 15% 110-2.0% 100 10% 90-5.5%-4.9% 55% 49% 5% 80-0.8% -1.5% -1.9% -2.3% -2.2% -3.0% -5.0% -6.5% -6.3% 0% 2008 2009 2010 2011 2012 2013 2014 70 2011 2012 2013 2014f CPI Inflation (LHS) Key Policy Rate (LHS) RSD per EUR (RHS) Bulgaria Romania Serbia 9M FY Q1 2013 2014 Results Q1 2013 2014 Results Integration International Macro Financials 39
Alpha Bank Group ( million) Q1 2014 Q1 2013 pro forma yoy % change Net Interest Income 471.3 327.9 43.8% Net fee and commission income 95.2 83.2 14.5% Income from Financial Operations 42.5 193.9 (78.1%) Other Income 13.0 10.7 21.7% Operating Income 622.0 615.6 1.0% Staff Costs (167.1) (183.0) (8.7%) General Expenses (138.6) (141.9) (2.3%) Depreciation and amortization expenses (23.8) (24.5) (2.8%) Operating Expenses before Integration and Extraordinary Costs (329.6) (349.4) (5.7%) Integration costs (5.3) (0.6) Extraordinary costs 0.4 (2.7) Operating Expenses (334.5) (352.7) (5.1%) Impairment losses on credit risk (395.1) (504.9) (21.8%) Profit / (Loss) before income tax (107.6) (242.0) (55.5%) Income Tax 13.5 472.4 Profit/ (Loss) after income tax (94.1) 230.4 Negative Goodwill from Emporiki Transaction 0.0 3,283.1 Profit / (Loss) after income tax from continuing operations (94.1) 3,513.5 Profit / (Loss) after income tax from discontinued operations 0.0 0.3 Profit / (Loss) attributable to shareholders (94.2) 3,513.7 Net Interest Income / Average Assets - MARGIN 2.6% 1.8% 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 40
Group Results by Business Unit ( million) Retail Commercial & Corporate SE Europe Investment Banking & Treasury Asset Management Other Group Jan-Mar Jan-Mar Jan-Mar Jan-Mar Jan-Mar Jan-Mar Jan-Mar 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 Operating Income 241.1 200.7 218.3 172.7 109.2 98.9 32.6 2.3 12.7 7.9 8.0 113.3 622.0 595.8 Net Interest Income 202.0 168.0 178.4 139.0 87.1 80.7 (0.3) (73.4) 3.5 2.6 0.5 0.8 471.3 317.7 Net fee and Commission Income 37.7 31.3 36.1 30.9 9.8 11.4 3.0 (2.9) 8.4 5.1 0.2 0.1 95.2 75.9 Income from Financial Operations 1.3 1.3 2.0 0.7 8.7 3.1 29.3 78.1 0.7 0.2 0.4 108.5 42.5 191.9 Other Income - - 1.8 2.1 3.6 3.7 0.5 0.5 0.0 0.0 7.0 3.9 13.0 10.2 Operating Expenses (194.1) (183.9) (42.7) (39.2) (63.7) (66.2) (6.7) (6.9) (7.7) (6.6) (19.6) (15.6) (334.5) (318.3) Staff Costs (99.2) (93.7) (26.0) (24.0) (30.2) (31.0) (3.5) (4.2) (3.8) (3.5) (4.1) (5.0) (166.9) (161.4) General Expenses (84.2) (77.2) (12.1) (9.8) (28.6) (30.7) (3.0) (2.4) (3.5) (2.8) (12.5) (5.1) (143.8) (127.9) Depreciation (10.7) (13.0) (4.6) (5.3) (4.9) (4.5) (0.3) (0.4) (0.4) (0.3) (3.0) (5.5) (23.8) (29.1) Impairment Losses (127.7) (297.3) (182.4) (131.8) (85.0) (75.8) - - - - - 0.0 (395.1) (504.9) Profit / (Loss) before tax (80.7) (280.5) (6.7) 1.7 (39.5) (43.0) 25.8 (4.7) 5.0 1.3 (11.6) 97.7 (107.6) (227.5) 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 41
Retail Business Unit: Results ( million) Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Operating Income 241.1 247.9 231.8 223.0 200.7 Net Interest Income 202.0 203.0 192.5 182.8 168.0 Net fee and Commission Income 37.7 43.4 37.8 39.2 31.3 Income from Financial Operations 1.3 1.5 1.4 1.0 1.3 Other Income - - - - - Operating Expenses (194.1) (201.1) (191.5) (187.2) (183.9) Staff Costs (99.2) (102.7) (105.1) (109.6) (93.7) General Expenses (84.2) (88.2) (76.4) (72.8) (77.2) Depreciation (10.7) (10.2) (10.0) (4.9) (13.0) Impairment losses (127.7) 62.6 (199.3) (215.1) (297.3) Profit / (Loss) before tax (80.7) 109.4 (159.0) (179.3) (280.5) RWA e 20,065 20,031 19,642 18,775 18,800 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 42
Commercial & Corporate Business Unit: Results ( million) Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Operating Income 218.3 224.5 220.0 224.9 172.7 Net Interest Income 178.4 181.3 181.3 184.3 139.0 Net fee and Commission Income 36.1 39.6 35.9 34.6 30.9 Income from Financial Operations 2.0 1.5 0.5 3.7 0.7 Other Income 1.8 2.1 2.3 2.3 2.1 Operating Expenses (42.7) (43.1) (41.9) (40.4) (39.2) Staff Costs (26.0) (25.1) (26.2) (26.9) (24.0) General Expenses (12.1) (12.5) (10.9) (10.8) (9.8) Depreciation (4.6) (5.6) (4.8) (2.7) (5.3) Impairment losses (182.4) (283.2) (238.3) (185.7) (131.8) Profit / (Loss) before tax (6.7) (101.9) (60.2) (1.3) 1.7 RWA e 19,429 19,574 20,835 22,567 23,796 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 43
Asset Management Business Unit: Results ( million) Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Operating Income 12.7 13.9 9.3 10.9 7.9 Net Interest Income 3.5 3.0 2.7 2.2 2.6 Net fee and Commission Income 8.4 8.7 6.3 7.8 5.1 Income from Financial Operations 0.7 2.3 0.4 0.1 0.2 Other Income 0.0 (0.1) (0.1) 0.8 0.0 Operating Expenses (7.7) (7.2) (6.4) (6.1) (6.6) Staff Costs (3.8) (3.6) (3.6) (3.5) (3.5) General Expenses (3.5) (3.3) (2.4) (2.5) (2.8) Depreciation (0.4) (0.2) (0.3) (0.1) (0.3) Impairment losses - (0.0) - - - Profit / (Loss) before tax 5.0 6.7 3.0 4.8 1.3 RWA e 322 382 382 568 816 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 44
Investment Banking & Treasury Business Unit: Results ( million) Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Operating Income 32.6 10.3 03 (7.4) (9.8) 2.3 Net Interest Income (0.3) (16.4) (25.6) (38.3) (73.4) Net fee and Commission Income 3.0 4.6 4.1 0.0 (2.9) Income from Financial Operations 29.3 21.5 13.8 27.7 78.1 Other Income 0.5 0.5 0.4 0.8 0.5 Operating Expenses (6.7) (7.6) (6.9) (7.6) (6.9) Staff Costs (3.5) (3.6) (3.8) (4.8) (4.2) General Expenses (3.0) (3.8) (2.8) (2.6) (2.4) Depreciation (0.3) (0.3) (0.3) (0.2) (0.4) Impairment losses - - - - - Profit / (Loss) before tax 25.8 2.7 (14.3) (17.4) (4.7) RWA e 3,259 3,226 4,057 4,505 4,561 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 45
SE Europe Business Unit: Results ( million) Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Operating Income 109.2 119.5 110.4 100.4 98.9 Net Interest Income 87.1 94.1 90.1 82.2 80.7 Net fee and Commission Income 9.8 10.6 11.2 10.5 11.4 Income from Financial Operations 8.7 9.6 4.2 3.6 3.1 Other Income 3.6 5.2 4.8 4.1 3.7 Operating Expenses (63.7) (78.8) (69.1) (70.7) (66.2) Staff Costs (30.2) (32.1) (33.4) (32.6) (31.0) General Expenses (28.6) (41.4) (30.3) (31.1) (30.7) Depreciation (4.9) (5.3) (5.4) (7.0) (4.5) Impairment losses (85.0) (228.5) (52.4) (78.4) (75.8) Profit / (Loss) before tax (39.5) (187.9) (11.1) (48.6) (43.0) RWA e 8,784 8,082 7,616 7,846 8,045 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 46
Other Business Unit: Results ( million) Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Operating Income 8.0 (17.0) (2.7) 38.6 113.3 Net Interest Income 0.5 11.1 6.3 3.5 0.8 Net fee and Commission Income 0.2 (0.3) 0.1 0.2 0.1 Income from Financial Operations 0.4 (34.8) (15.1) 21.7 108.5 Other Income 7.0 7.0 6.0 13.2 3.9 Operating Expenses (19.6) (104.0) (21.0) (16.9) (15.6) Staff Costs (4.1) 25.1 (3.8) (4.9) (5.0) General Expenses (12.5) (126.6) (15.0) (10.8) (5.1) Depreciation - (2.5) (2.2) (1.3) (5.5) Impairment losses (3.0) (0.0) 0.0 (0.0) 0.0 Profit / (Loss) before tax - (121.1) (23.7) 21.7 97.7 RWA e 677 650 610 354 311 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 47
SEE Balance Sheet Figures ( million) Cyprus Δ% Romania Δ% Bulgaria Δ% Serbia Δ% Albania Δ% FYROM Δ% TOTAL Δ% Mar. 2014 yoy yoy Yoy yoy Yoy yoy yoy Loans 5,131 (1.0%) 2,874 (5.1%) 617 (14.0%) 760 (1.3%) 370 (1.0%) 68 (2.4%) 9,819 (4.2%) Mortgages 2,436 (0.9%) 841 8.3% 145 (8.4%) 196 (1.6%) 67 (4.8%) 14 (14.9%) 3,698 0.3% Consumer Credit 287 (7.0%) 311 (9.5%) 70 3.8% 132 (12.8%) 11 60.7% 22 (1.2%) 833 (13.4%) Businesses 2,409 (0.4%) 1,722 (9.7%) 403 (18.2%) 431 3.0% 292 (1.5%) 32 3.2% 5,289 (5.6%) Deposits 2,216 (16.0%) 1,447 6.6% 426 22.1% 450 (23.3%) 484 6.3% 84 11.3% 5,107 (7.6%) 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 48
SEE Main P&L Figures ( million) Cyprus 1 Δ% Romania Δ% Bulgaria Δ% Serbia Δ% Albania Δ% FYROM Δ% TOTAL Δ% Mar. 2014 yoy yoy yoy yoy yoy yoy yoy Operating Income 40.5 7.9% 36.8 3.4% 12.9 19.6% 13.3 40.9% 4.5 0.3% 1.2 11.4% 109.2 10.4% Operating Expenses (pre-o/h 16.1 (1.7%) 21.0 (3.6%) 8.1 2.9% 9.0 (2.6%) 3.2 (3.8%) 1.5 (9.3%) 58.9 (2.2%) allocation) Impairment Losses 66.4 59.6% 14.4 (45.5%) 1.4 71.7% 1.7 (71.5%) 1.4 147.2% (0.3) (162.3%) 85.0 12.1% Profit Before Tax (pre- O/H allocation) (41.9) 105.7% 1.4 (110.8%) 3.5 61.3% 2.6 (145.5%) (0.2) (133.6%) 0.003 (100.3%) (34.6) (6.7%) Loan Market Share 7.8% 5.7% 2.2% 4.6% 8.9% 1.7% NPL Ratio 37.0% 14.4% 26.0% 19.1% 24.4% 27.2% Branches 33 149 86 101 42 18 429-63 Employees 966 2,023 768 1,287 390 242 5,676-625 1 Includes Emporiki Bank Cyprus as of 01/02/2013 9M FY Q1 2013 2014 Results Q1 2014 Results Integration International Macro Financials 49
Investor Relations Contacts Mr. Dimitrios Kostopoulos Manager Investor Relations Division Ms. Elena Katopodi Assistant Manager Investor Relations Division Ms. Evangelia Chatzigiagkou Investor Relations Officer Mr. Marios-Ioannis Deportou Investor Relations Officer Ms. Stella Traka Investor Relations Officer E-mail : ir@alpha.gr Tel : +30 210 326 4082 +30 210 326 4182 +30 210 326 4185 +30 210 326 4165 +30 210 326 4010 +30 210 326 4199 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) 9M FY Q1 2013 2014 Results 50