piraeus bank group presentation>> bulgaria | albania [banking subsidiaries] q2.18 ~€1.2bn c....
TRANSCRIPT
![Page 1: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/1.jpg)
November 2017
PIRAEUS BANK GROUP
PRESENTATIONBASED ON Q118 FINANCIAL RESULTS
10 May 2018
TABLE OF CONTENTS
01 EXECUTIVE SUMMARY
02 FINANCIAL PERFORMANCE
03 ASSET QUALITY
04 EU STRESS TEST
05 LIQUIDITY
06 APPENDIX
01E X EC U T I V E S U M M A RY
| EXECUTIVE SUMMARY
01
4
11 IMPROVING OUTLOOK FOR THE GREEK ECONOMY
Sources ELSTAT BoG Bloomberg Piraeus Bank Economic Research
Real Estate Prices Stabilizing (change yoy )Real GDP Returns to Growth Trajectory (2017 +14)
Unemployment Rate Fallen Significantly (2017 215) Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
-04-07
Η1
09
Η2
09
Η1
10
Η2
10
Η1
11
Η2
11
Η1
12
Η2
12
Η1
13
Η2
13
Η1
14
Η2
14
Η1
15
Η2
15
Η1
16
Η2
16
Η1
17
Η2
17
-14
-12
-10
-8
-6
-4
-2
0
2House Price Index yoy Commercial Price index yoy
30
35
40
45
50
55
60
Q1
04Q
304
Q1
05Q
305
Q1
06Q
306
Q1
07Q
307
Q1
08Q
308
Q1
09Q
309
Q1
10Q
310
Q1
11Q
311
Q1
12Q
312
Q1
13Q
313
Q1
14Q
314
Q1
15Q
315
Q1
16Q
316
Q1
17Q
317
Q1
18
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
21 23
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
17
Q4
17
qoq change yoy change
2018-2019
outlook
197180
0
5
10
15
20
25
30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Unemployment Rate
2018-2019
outlook
F I N A N C I A L R ES U LTS H I G H L I G H TS
12 Q12018 | PROGRESS IN ALL FRONTS 01
Continuous Progress on Asset Qualitybull NPEs reduced by euro30bn yoy and euro56bn from peak in Sep15 euro07bn down in Q118
bull Ten consecutive quarters of NPE reduction
bull Two portfolio sales of ceuro2bn aggregated NPE gross book value in Q218
bull NPE cash coverage at 51 while including collateral coverage stands at 98
Improved Liquidity Profile and Enhanced Funding Mix bull Deposits in Greece up by euro34bn yoy and by euro05bn in Q118 at euro414bn
bull ELA reduced to euro1bn area in mid-May 2018 full elimination expected in the near term
bull Net Loan to Deposit Ratio of 96 in Greece vs 118 a year ago
Intensified Cost Efficiency and Cost of Risk Decrease Offsetting Lower Net Interest Incomebull Net Interest Income down 9 qoq on the back of increased provisions (Q417 IFRS9)
bull Net Fee Income up 2 yoy with expectation for acceleration in forthcoming quarters
bull Operating Costs down by 6 for Group 7 Greece yoy Cost-to-Income at 56 (recurring data for Q118)
bull Cost of risk at 16 for Q118 on the back of euro3bn increase in provisions since Sep17
bull Profitable Q118 with euro32mn recurring bottom-line for Greek operations
Maintaining a Strong Capital Positionbull Transitional CET-1 at 144 adjusted for asset disposals under way
bull Solid performance at the 2018 EU-wide stress test exercise
bull Non-dilutive capital actions in place to fortify balance sheet strength and accelerate the execution of
Piraeus Grouprsquos strategic amp business plan
| EXECUTIVE SUMMARY5
6
13 BALANCE SHEET IMPROVEMENT | GREECE01
| EXECUTIVE SUMMARY
Greece eurobn Dec17 Mar18 qoq
Assets 585(1) 584 0
Gross Loans 566(2) 557 -1
Net Loans 416(2) 398 -3
Loan Loss Reserves 150 158 5
Customer Deposits 409 414 1
Eurosystem Funding 97 61 -37
96 LDR ratioenhanced liquidity
ELA 3 over assets
28LLRs over loans
euro30bnnew loan generation
budgeted for 2018
(1) Dec17 assets excluding seasonal agri-loan EFSF bonds eliminated in Q118 anddiscontinued operations
(2) Loans adjusted for seasonal agri-loan in Dec17 in addition quarterly rateadjusted for Q118 write-offs
7
14 OPERATIONAL PERFORMANCE | GREECE01
| EXECUTIVE SUMMARY
Greece euromn Q417 Q118 qoq
Net Revenues 466 434 -7
Operating Expenses 306 242 -21
Pre Provision Income 160 192 21
Impairments 1236 148 -88
Net results attrib to SHs 66 -66 -
Net results attrib to SHs (recurring Q118)
66 32 -
233bps NIMover assets
56 CIdown qoq
50bps NFI over assets
160bps CoRat normalization trend
Note assets adjusted for discontinued operationsNote PampL figures for Q417 and Q118 exclude one-time employee cost of euro16mn andeuro138mn respectively
16
15collateral
provisions
377358
329 322
Sep15 Dec16 Dec17 Mar18
98
01
8
15 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro07bnQ118 ΝPE quarterly
reduction
euro30bnNPE reduction in the last 12 months
euro56bnNPE reduction from Sep15 peak
Coverage
01
9
16 NPE REDUCTION PACE
| EXECUTIVE SUMMARY
342
-04 -12 -12
314
-06
308
Jun16 H216 H117 H217 Dec17 Q118 Mar18
Βank NPE Track Record (eurobn)
Piraeus reduced parent stock of NPE by 10 from Jun16 to Mar18 recorded euro06bnreduction in Q118
10
17 NPE MANAGEMENT DECREASE IN DEFAULTS amp RE-DEFAULTS TRENDS01
(11)
(07)(09) (09) (09) (09)
(03)
(07)(06)
(05) (05) (05)
(02)
GeorgeHandjini
colaou(10)
(06)
(05)
07
04 05 05 05 04
04
04 04 03 04 03
Redefaults
Defaults
Bank data amounts in eurobn
Curing RestructuringLiquidationsCollections
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
02
04
Required effort per quarter on
average till 2019
Q218 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
Note March 2018 data are preliminary
01
11
18 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
197149
104
111
109
99
Mar2018a Dec2018f Dec2019f
Piraeus aims to further reduce parent stock of
NPEs by 34 from Mar18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsbull sales
Reduction will be achieved through
NPE
NPL
euro203bn
euro259bn
euro308bn
198 243 200
00
euro70bn -euro35bn-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
12
19 ΙΜΜΙΝΕΝΤ NPΕ SALES01
| EXECUTIVE SUMMARY
Project ldquoAMOEBArdquo
bull Sale of ceuro22bn legal claim secured large SME and corporate -mainly denounced-NPLs (euro16bn gross book value)
bull Servicing entity established by the Bank
available for sale to capital providers
bull 180 borrowers 1737 properties
bull UBS acts as financial advisor
bull c30 signed NDAs with international investors
bull Non binding offers submitted on 9 February
by 12 investors
bull Sale of ceuro23bn legal claim unsecured denounced consumer NPLs (euro04bn gross book value)
bull Unsecured personal loans and credit cards
bull 132k borrowers 43 of accounts in euro1-5k bucket
bull EY acts as financial advisor
bull c23 signed NDAs with international investors
bull Non binding offers submitted on 14 March by 6 investors
Project ldquoARCTOSrdquo
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 2: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/2.jpg)
TABLE OF CONTENTS
01 EXECUTIVE SUMMARY
02 FINANCIAL PERFORMANCE
03 ASSET QUALITY
04 EU STRESS TEST
05 LIQUIDITY
06 APPENDIX
01E X EC U T I V E S U M M A RY
| EXECUTIVE SUMMARY
01
4
11 IMPROVING OUTLOOK FOR THE GREEK ECONOMY
Sources ELSTAT BoG Bloomberg Piraeus Bank Economic Research
Real Estate Prices Stabilizing (change yoy )Real GDP Returns to Growth Trajectory (2017 +14)
Unemployment Rate Fallen Significantly (2017 215) Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
-04-07
Η1
09
Η2
09
Η1
10
Η2
10
Η1
11
Η2
11
Η1
12
Η2
12
Η1
13
Η2
13
Η1
14
Η2
14
Η1
15
Η2
15
Η1
16
Η2
16
Η1
17
Η2
17
-14
-12
-10
-8
-6
-4
-2
0
2House Price Index yoy Commercial Price index yoy
30
35
40
45
50
55
60
Q1
04Q
304
Q1
05Q
305
Q1
06Q
306
Q1
07Q
307
Q1
08Q
308
Q1
09Q
309
Q1
10Q
310
Q1
11Q
311
Q1
12Q
312
Q1
13Q
313
Q1
14Q
314
Q1
15Q
315
Q1
16Q
316
Q1
17Q
317
Q1
18
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
21 23
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
17
Q4
17
qoq change yoy change
2018-2019
outlook
197180
0
5
10
15
20
25
30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Unemployment Rate
2018-2019
outlook
F I N A N C I A L R ES U LTS H I G H L I G H TS
12 Q12018 | PROGRESS IN ALL FRONTS 01
Continuous Progress on Asset Qualitybull NPEs reduced by euro30bn yoy and euro56bn from peak in Sep15 euro07bn down in Q118
bull Ten consecutive quarters of NPE reduction
bull Two portfolio sales of ceuro2bn aggregated NPE gross book value in Q218
bull NPE cash coverage at 51 while including collateral coverage stands at 98
Improved Liquidity Profile and Enhanced Funding Mix bull Deposits in Greece up by euro34bn yoy and by euro05bn in Q118 at euro414bn
bull ELA reduced to euro1bn area in mid-May 2018 full elimination expected in the near term
bull Net Loan to Deposit Ratio of 96 in Greece vs 118 a year ago
Intensified Cost Efficiency and Cost of Risk Decrease Offsetting Lower Net Interest Incomebull Net Interest Income down 9 qoq on the back of increased provisions (Q417 IFRS9)
bull Net Fee Income up 2 yoy with expectation for acceleration in forthcoming quarters
bull Operating Costs down by 6 for Group 7 Greece yoy Cost-to-Income at 56 (recurring data for Q118)
bull Cost of risk at 16 for Q118 on the back of euro3bn increase in provisions since Sep17
bull Profitable Q118 with euro32mn recurring bottom-line for Greek operations
Maintaining a Strong Capital Positionbull Transitional CET-1 at 144 adjusted for asset disposals under way
bull Solid performance at the 2018 EU-wide stress test exercise
bull Non-dilutive capital actions in place to fortify balance sheet strength and accelerate the execution of
Piraeus Grouprsquos strategic amp business plan
| EXECUTIVE SUMMARY5
6
13 BALANCE SHEET IMPROVEMENT | GREECE01
| EXECUTIVE SUMMARY
Greece eurobn Dec17 Mar18 qoq
Assets 585(1) 584 0
Gross Loans 566(2) 557 -1
Net Loans 416(2) 398 -3
Loan Loss Reserves 150 158 5
Customer Deposits 409 414 1
Eurosystem Funding 97 61 -37
96 LDR ratioenhanced liquidity
ELA 3 over assets
28LLRs over loans
euro30bnnew loan generation
budgeted for 2018
(1) Dec17 assets excluding seasonal agri-loan EFSF bonds eliminated in Q118 anddiscontinued operations
(2) Loans adjusted for seasonal agri-loan in Dec17 in addition quarterly rateadjusted for Q118 write-offs
7
14 OPERATIONAL PERFORMANCE | GREECE01
| EXECUTIVE SUMMARY
Greece euromn Q417 Q118 qoq
Net Revenues 466 434 -7
Operating Expenses 306 242 -21
Pre Provision Income 160 192 21
Impairments 1236 148 -88
Net results attrib to SHs 66 -66 -
Net results attrib to SHs (recurring Q118)
66 32 -
233bps NIMover assets
56 CIdown qoq
50bps NFI over assets
160bps CoRat normalization trend
Note assets adjusted for discontinued operationsNote PampL figures for Q417 and Q118 exclude one-time employee cost of euro16mn andeuro138mn respectively
16
15collateral
provisions
377358
329 322
Sep15 Dec16 Dec17 Mar18
98
01
8
15 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro07bnQ118 ΝPE quarterly
reduction
euro30bnNPE reduction in the last 12 months
euro56bnNPE reduction from Sep15 peak
Coverage
01
9
16 NPE REDUCTION PACE
| EXECUTIVE SUMMARY
342
-04 -12 -12
314
-06
308
Jun16 H216 H117 H217 Dec17 Q118 Mar18
Βank NPE Track Record (eurobn)
Piraeus reduced parent stock of NPE by 10 from Jun16 to Mar18 recorded euro06bnreduction in Q118
10
17 NPE MANAGEMENT DECREASE IN DEFAULTS amp RE-DEFAULTS TRENDS01
(11)
(07)(09) (09) (09) (09)
(03)
(07)(06)
(05) (05) (05)
(02)
GeorgeHandjini
colaou(10)
(06)
(05)
07
04 05 05 05 04
04
04 04 03 04 03
Redefaults
Defaults
Bank data amounts in eurobn
Curing RestructuringLiquidationsCollections
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
02
04
Required effort per quarter on
average till 2019
Q218 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
Note March 2018 data are preliminary
01
11
18 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
197149
104
111
109
99
Mar2018a Dec2018f Dec2019f
Piraeus aims to further reduce parent stock of
NPEs by 34 from Mar18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsbull sales
Reduction will be achieved through
NPE
NPL
euro203bn
euro259bn
euro308bn
198 243 200
00
euro70bn -euro35bn-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
12
19 ΙΜΜΙΝΕΝΤ NPΕ SALES01
| EXECUTIVE SUMMARY
Project ldquoAMOEBArdquo
bull Sale of ceuro22bn legal claim secured large SME and corporate -mainly denounced-NPLs (euro16bn gross book value)
bull Servicing entity established by the Bank
available for sale to capital providers
bull 180 borrowers 1737 properties
bull UBS acts as financial advisor
bull c30 signed NDAs with international investors
bull Non binding offers submitted on 9 February
by 12 investors
bull Sale of ceuro23bn legal claim unsecured denounced consumer NPLs (euro04bn gross book value)
bull Unsecured personal loans and credit cards
bull 132k borrowers 43 of accounts in euro1-5k bucket
bull EY acts as financial advisor
bull c23 signed NDAs with international investors
bull Non binding offers submitted on 14 March by 6 investors
Project ldquoARCTOSrdquo
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 3: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/3.jpg)
01E X EC U T I V E S U M M A RY
| EXECUTIVE SUMMARY
01
4
11 IMPROVING OUTLOOK FOR THE GREEK ECONOMY
Sources ELSTAT BoG Bloomberg Piraeus Bank Economic Research
Real Estate Prices Stabilizing (change yoy )Real GDP Returns to Growth Trajectory (2017 +14)
Unemployment Rate Fallen Significantly (2017 215) Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
-04-07
Η1
09
Η2
09
Η1
10
Η2
10
Η1
11
Η2
11
Η1
12
Η2
12
Η1
13
Η2
13
Η1
14
Η2
14
Η1
15
Η2
15
Η1
16
Η2
16
Η1
17
Η2
17
-14
-12
-10
-8
-6
-4
-2
0
2House Price Index yoy Commercial Price index yoy
30
35
40
45
50
55
60
Q1
04Q
304
Q1
05Q
305
Q1
06Q
306
Q1
07Q
307
Q1
08Q
308
Q1
09Q
309
Q1
10Q
310
Q1
11Q
311
Q1
12Q
312
Q1
13Q
313
Q1
14Q
314
Q1
15Q
315
Q1
16Q
316
Q1
17Q
317
Q1
18
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
21 23
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
17
Q4
17
qoq change yoy change
2018-2019
outlook
197180
0
5
10
15
20
25
30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Unemployment Rate
2018-2019
outlook
F I N A N C I A L R ES U LTS H I G H L I G H TS
12 Q12018 | PROGRESS IN ALL FRONTS 01
Continuous Progress on Asset Qualitybull NPEs reduced by euro30bn yoy and euro56bn from peak in Sep15 euro07bn down in Q118
bull Ten consecutive quarters of NPE reduction
bull Two portfolio sales of ceuro2bn aggregated NPE gross book value in Q218
bull NPE cash coverage at 51 while including collateral coverage stands at 98
Improved Liquidity Profile and Enhanced Funding Mix bull Deposits in Greece up by euro34bn yoy and by euro05bn in Q118 at euro414bn
bull ELA reduced to euro1bn area in mid-May 2018 full elimination expected in the near term
bull Net Loan to Deposit Ratio of 96 in Greece vs 118 a year ago
Intensified Cost Efficiency and Cost of Risk Decrease Offsetting Lower Net Interest Incomebull Net Interest Income down 9 qoq on the back of increased provisions (Q417 IFRS9)
bull Net Fee Income up 2 yoy with expectation for acceleration in forthcoming quarters
bull Operating Costs down by 6 for Group 7 Greece yoy Cost-to-Income at 56 (recurring data for Q118)
bull Cost of risk at 16 for Q118 on the back of euro3bn increase in provisions since Sep17
bull Profitable Q118 with euro32mn recurring bottom-line for Greek operations
Maintaining a Strong Capital Positionbull Transitional CET-1 at 144 adjusted for asset disposals under way
bull Solid performance at the 2018 EU-wide stress test exercise
bull Non-dilutive capital actions in place to fortify balance sheet strength and accelerate the execution of
Piraeus Grouprsquos strategic amp business plan
| EXECUTIVE SUMMARY5
6
13 BALANCE SHEET IMPROVEMENT | GREECE01
| EXECUTIVE SUMMARY
Greece eurobn Dec17 Mar18 qoq
Assets 585(1) 584 0
Gross Loans 566(2) 557 -1
Net Loans 416(2) 398 -3
Loan Loss Reserves 150 158 5
Customer Deposits 409 414 1
Eurosystem Funding 97 61 -37
96 LDR ratioenhanced liquidity
ELA 3 over assets
28LLRs over loans
euro30bnnew loan generation
budgeted for 2018
(1) Dec17 assets excluding seasonal agri-loan EFSF bonds eliminated in Q118 anddiscontinued operations
(2) Loans adjusted for seasonal agri-loan in Dec17 in addition quarterly rateadjusted for Q118 write-offs
7
14 OPERATIONAL PERFORMANCE | GREECE01
| EXECUTIVE SUMMARY
Greece euromn Q417 Q118 qoq
Net Revenues 466 434 -7
Operating Expenses 306 242 -21
Pre Provision Income 160 192 21
Impairments 1236 148 -88
Net results attrib to SHs 66 -66 -
Net results attrib to SHs (recurring Q118)
66 32 -
233bps NIMover assets
56 CIdown qoq
50bps NFI over assets
160bps CoRat normalization trend
Note assets adjusted for discontinued operationsNote PampL figures for Q417 and Q118 exclude one-time employee cost of euro16mn andeuro138mn respectively
16
15collateral
provisions
377358
329 322
Sep15 Dec16 Dec17 Mar18
98
01
8
15 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro07bnQ118 ΝPE quarterly
reduction
euro30bnNPE reduction in the last 12 months
euro56bnNPE reduction from Sep15 peak
Coverage
01
9
16 NPE REDUCTION PACE
| EXECUTIVE SUMMARY
342
-04 -12 -12
314
-06
308
Jun16 H216 H117 H217 Dec17 Q118 Mar18
Βank NPE Track Record (eurobn)
Piraeus reduced parent stock of NPE by 10 from Jun16 to Mar18 recorded euro06bnreduction in Q118
10
17 NPE MANAGEMENT DECREASE IN DEFAULTS amp RE-DEFAULTS TRENDS01
(11)
(07)(09) (09) (09) (09)
(03)
(07)(06)
(05) (05) (05)
(02)
GeorgeHandjini
colaou(10)
(06)
(05)
07
04 05 05 05 04
04
04 04 03 04 03
Redefaults
Defaults
Bank data amounts in eurobn
Curing RestructuringLiquidationsCollections
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
02
04
Required effort per quarter on
average till 2019
Q218 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
Note March 2018 data are preliminary
01
11
18 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
197149
104
111
109
99
Mar2018a Dec2018f Dec2019f
Piraeus aims to further reduce parent stock of
NPEs by 34 from Mar18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsbull sales
Reduction will be achieved through
NPE
NPL
euro203bn
euro259bn
euro308bn
198 243 200
00
euro70bn -euro35bn-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
12
19 ΙΜΜΙΝΕΝΤ NPΕ SALES01
| EXECUTIVE SUMMARY
Project ldquoAMOEBArdquo
bull Sale of ceuro22bn legal claim secured large SME and corporate -mainly denounced-NPLs (euro16bn gross book value)
bull Servicing entity established by the Bank
available for sale to capital providers
bull 180 borrowers 1737 properties
bull UBS acts as financial advisor
bull c30 signed NDAs with international investors
bull Non binding offers submitted on 9 February
by 12 investors
bull Sale of ceuro23bn legal claim unsecured denounced consumer NPLs (euro04bn gross book value)
bull Unsecured personal loans and credit cards
bull 132k borrowers 43 of accounts in euro1-5k bucket
bull EY acts as financial advisor
bull c23 signed NDAs with international investors
bull Non binding offers submitted on 14 March by 6 investors
Project ldquoARCTOSrdquo
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 4: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/4.jpg)
| EXECUTIVE SUMMARY
01
4
11 IMPROVING OUTLOOK FOR THE GREEK ECONOMY
Sources ELSTAT BoG Bloomberg Piraeus Bank Economic Research
Real Estate Prices Stabilizing (change yoy )Real GDP Returns to Growth Trajectory (2017 +14)
Unemployment Rate Fallen Significantly (2017 215) Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
-04-07
Η1
09
Η2
09
Η1
10
Η2
10
Η1
11
Η2
11
Η1
12
Η2
12
Η1
13
Η2
13
Η1
14
Η2
14
Η1
15
Η2
15
Η1
16
Η2
16
Η1
17
Η2
17
-14
-12
-10
-8
-6
-4
-2
0
2House Price Index yoy Commercial Price index yoy
30
35
40
45
50
55
60
Q1
04Q
304
Q1
05Q
305
Q1
06Q
306
Q1
07Q
307
Q1
08Q
308
Q1
09Q
309
Q1
10Q
310
Q1
11Q
311
Q1
12Q
312
Q1
13Q
313
Q1
14Q
314
Q1
15Q
315
Q1
16Q
316
Q1
17Q
317
Q1
18
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
21 23
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
17
Q4
17
qoq change yoy change
2018-2019
outlook
197180
0
5
10
15
20
25
30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Unemployment Rate
2018-2019
outlook
F I N A N C I A L R ES U LTS H I G H L I G H TS
12 Q12018 | PROGRESS IN ALL FRONTS 01
Continuous Progress on Asset Qualitybull NPEs reduced by euro30bn yoy and euro56bn from peak in Sep15 euro07bn down in Q118
bull Ten consecutive quarters of NPE reduction
bull Two portfolio sales of ceuro2bn aggregated NPE gross book value in Q218
bull NPE cash coverage at 51 while including collateral coverage stands at 98
Improved Liquidity Profile and Enhanced Funding Mix bull Deposits in Greece up by euro34bn yoy and by euro05bn in Q118 at euro414bn
bull ELA reduced to euro1bn area in mid-May 2018 full elimination expected in the near term
bull Net Loan to Deposit Ratio of 96 in Greece vs 118 a year ago
Intensified Cost Efficiency and Cost of Risk Decrease Offsetting Lower Net Interest Incomebull Net Interest Income down 9 qoq on the back of increased provisions (Q417 IFRS9)
bull Net Fee Income up 2 yoy with expectation for acceleration in forthcoming quarters
bull Operating Costs down by 6 for Group 7 Greece yoy Cost-to-Income at 56 (recurring data for Q118)
bull Cost of risk at 16 for Q118 on the back of euro3bn increase in provisions since Sep17
bull Profitable Q118 with euro32mn recurring bottom-line for Greek operations
Maintaining a Strong Capital Positionbull Transitional CET-1 at 144 adjusted for asset disposals under way
bull Solid performance at the 2018 EU-wide stress test exercise
bull Non-dilutive capital actions in place to fortify balance sheet strength and accelerate the execution of
Piraeus Grouprsquos strategic amp business plan
| EXECUTIVE SUMMARY5
6
13 BALANCE SHEET IMPROVEMENT | GREECE01
| EXECUTIVE SUMMARY
Greece eurobn Dec17 Mar18 qoq
Assets 585(1) 584 0
Gross Loans 566(2) 557 -1
Net Loans 416(2) 398 -3
Loan Loss Reserves 150 158 5
Customer Deposits 409 414 1
Eurosystem Funding 97 61 -37
96 LDR ratioenhanced liquidity
ELA 3 over assets
28LLRs over loans
euro30bnnew loan generation
budgeted for 2018
(1) Dec17 assets excluding seasonal agri-loan EFSF bonds eliminated in Q118 anddiscontinued operations
(2) Loans adjusted for seasonal agri-loan in Dec17 in addition quarterly rateadjusted for Q118 write-offs
7
14 OPERATIONAL PERFORMANCE | GREECE01
| EXECUTIVE SUMMARY
Greece euromn Q417 Q118 qoq
Net Revenues 466 434 -7
Operating Expenses 306 242 -21
Pre Provision Income 160 192 21
Impairments 1236 148 -88
Net results attrib to SHs 66 -66 -
Net results attrib to SHs (recurring Q118)
66 32 -
233bps NIMover assets
56 CIdown qoq
50bps NFI over assets
160bps CoRat normalization trend
Note assets adjusted for discontinued operationsNote PampL figures for Q417 and Q118 exclude one-time employee cost of euro16mn andeuro138mn respectively
16
15collateral
provisions
377358
329 322
Sep15 Dec16 Dec17 Mar18
98
01
8
15 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro07bnQ118 ΝPE quarterly
reduction
euro30bnNPE reduction in the last 12 months
euro56bnNPE reduction from Sep15 peak
Coverage
01
9
16 NPE REDUCTION PACE
| EXECUTIVE SUMMARY
342
-04 -12 -12
314
-06
308
Jun16 H216 H117 H217 Dec17 Q118 Mar18
Βank NPE Track Record (eurobn)
Piraeus reduced parent stock of NPE by 10 from Jun16 to Mar18 recorded euro06bnreduction in Q118
10
17 NPE MANAGEMENT DECREASE IN DEFAULTS amp RE-DEFAULTS TRENDS01
(11)
(07)(09) (09) (09) (09)
(03)
(07)(06)
(05) (05) (05)
(02)
GeorgeHandjini
colaou(10)
(06)
(05)
07
04 05 05 05 04
04
04 04 03 04 03
Redefaults
Defaults
Bank data amounts in eurobn
Curing RestructuringLiquidationsCollections
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
02
04
Required effort per quarter on
average till 2019
Q218 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
Note March 2018 data are preliminary
01
11
18 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
197149
104
111
109
99
Mar2018a Dec2018f Dec2019f
Piraeus aims to further reduce parent stock of
NPEs by 34 from Mar18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsbull sales
Reduction will be achieved through
NPE
NPL
euro203bn
euro259bn
euro308bn
198 243 200
00
euro70bn -euro35bn-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
12
19 ΙΜΜΙΝΕΝΤ NPΕ SALES01
| EXECUTIVE SUMMARY
Project ldquoAMOEBArdquo
bull Sale of ceuro22bn legal claim secured large SME and corporate -mainly denounced-NPLs (euro16bn gross book value)
bull Servicing entity established by the Bank
available for sale to capital providers
bull 180 borrowers 1737 properties
bull UBS acts as financial advisor
bull c30 signed NDAs with international investors
bull Non binding offers submitted on 9 February
by 12 investors
bull Sale of ceuro23bn legal claim unsecured denounced consumer NPLs (euro04bn gross book value)
bull Unsecured personal loans and credit cards
bull 132k borrowers 43 of accounts in euro1-5k bucket
bull EY acts as financial advisor
bull c23 signed NDAs with international investors
bull Non binding offers submitted on 14 March by 6 investors
Project ldquoARCTOSrdquo
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 5: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/5.jpg)
F I N A N C I A L R ES U LTS H I G H L I G H TS
12 Q12018 | PROGRESS IN ALL FRONTS 01
Continuous Progress on Asset Qualitybull NPEs reduced by euro30bn yoy and euro56bn from peak in Sep15 euro07bn down in Q118
bull Ten consecutive quarters of NPE reduction
bull Two portfolio sales of ceuro2bn aggregated NPE gross book value in Q218
bull NPE cash coverage at 51 while including collateral coverage stands at 98
Improved Liquidity Profile and Enhanced Funding Mix bull Deposits in Greece up by euro34bn yoy and by euro05bn in Q118 at euro414bn
bull ELA reduced to euro1bn area in mid-May 2018 full elimination expected in the near term
bull Net Loan to Deposit Ratio of 96 in Greece vs 118 a year ago
Intensified Cost Efficiency and Cost of Risk Decrease Offsetting Lower Net Interest Incomebull Net Interest Income down 9 qoq on the back of increased provisions (Q417 IFRS9)
bull Net Fee Income up 2 yoy with expectation for acceleration in forthcoming quarters
bull Operating Costs down by 6 for Group 7 Greece yoy Cost-to-Income at 56 (recurring data for Q118)
bull Cost of risk at 16 for Q118 on the back of euro3bn increase in provisions since Sep17
bull Profitable Q118 with euro32mn recurring bottom-line for Greek operations
Maintaining a Strong Capital Positionbull Transitional CET-1 at 144 adjusted for asset disposals under way
bull Solid performance at the 2018 EU-wide stress test exercise
bull Non-dilutive capital actions in place to fortify balance sheet strength and accelerate the execution of
Piraeus Grouprsquos strategic amp business plan
| EXECUTIVE SUMMARY5
6
13 BALANCE SHEET IMPROVEMENT | GREECE01
| EXECUTIVE SUMMARY
Greece eurobn Dec17 Mar18 qoq
Assets 585(1) 584 0
Gross Loans 566(2) 557 -1
Net Loans 416(2) 398 -3
Loan Loss Reserves 150 158 5
Customer Deposits 409 414 1
Eurosystem Funding 97 61 -37
96 LDR ratioenhanced liquidity
ELA 3 over assets
28LLRs over loans
euro30bnnew loan generation
budgeted for 2018
(1) Dec17 assets excluding seasonal agri-loan EFSF bonds eliminated in Q118 anddiscontinued operations
(2) Loans adjusted for seasonal agri-loan in Dec17 in addition quarterly rateadjusted for Q118 write-offs
7
14 OPERATIONAL PERFORMANCE | GREECE01
| EXECUTIVE SUMMARY
Greece euromn Q417 Q118 qoq
Net Revenues 466 434 -7
Operating Expenses 306 242 -21
Pre Provision Income 160 192 21
Impairments 1236 148 -88
Net results attrib to SHs 66 -66 -
Net results attrib to SHs (recurring Q118)
66 32 -
233bps NIMover assets
56 CIdown qoq
50bps NFI over assets
160bps CoRat normalization trend
Note assets adjusted for discontinued operationsNote PampL figures for Q417 and Q118 exclude one-time employee cost of euro16mn andeuro138mn respectively
16
15collateral
provisions
377358
329 322
Sep15 Dec16 Dec17 Mar18
98
01
8
15 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro07bnQ118 ΝPE quarterly
reduction
euro30bnNPE reduction in the last 12 months
euro56bnNPE reduction from Sep15 peak
Coverage
01
9
16 NPE REDUCTION PACE
| EXECUTIVE SUMMARY
342
-04 -12 -12
314
-06
308
Jun16 H216 H117 H217 Dec17 Q118 Mar18
Βank NPE Track Record (eurobn)
Piraeus reduced parent stock of NPE by 10 from Jun16 to Mar18 recorded euro06bnreduction in Q118
10
17 NPE MANAGEMENT DECREASE IN DEFAULTS amp RE-DEFAULTS TRENDS01
(11)
(07)(09) (09) (09) (09)
(03)
(07)(06)
(05) (05) (05)
(02)
GeorgeHandjini
colaou(10)
(06)
(05)
07
04 05 05 05 04
04
04 04 03 04 03
Redefaults
Defaults
Bank data amounts in eurobn
Curing RestructuringLiquidationsCollections
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
02
04
Required effort per quarter on
average till 2019
Q218 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
Note March 2018 data are preliminary
01
11
18 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
197149
104
111
109
99
Mar2018a Dec2018f Dec2019f
Piraeus aims to further reduce parent stock of
NPEs by 34 from Mar18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsbull sales
Reduction will be achieved through
NPE
NPL
euro203bn
euro259bn
euro308bn
198 243 200
00
euro70bn -euro35bn-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
12
19 ΙΜΜΙΝΕΝΤ NPΕ SALES01
| EXECUTIVE SUMMARY
Project ldquoAMOEBArdquo
bull Sale of ceuro22bn legal claim secured large SME and corporate -mainly denounced-NPLs (euro16bn gross book value)
bull Servicing entity established by the Bank
available for sale to capital providers
bull 180 borrowers 1737 properties
bull UBS acts as financial advisor
bull c30 signed NDAs with international investors
bull Non binding offers submitted on 9 February
by 12 investors
bull Sale of ceuro23bn legal claim unsecured denounced consumer NPLs (euro04bn gross book value)
bull Unsecured personal loans and credit cards
bull 132k borrowers 43 of accounts in euro1-5k bucket
bull EY acts as financial advisor
bull c23 signed NDAs with international investors
bull Non binding offers submitted on 14 March by 6 investors
Project ldquoARCTOSrdquo
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 6: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/6.jpg)
6
13 BALANCE SHEET IMPROVEMENT | GREECE01
| EXECUTIVE SUMMARY
Greece eurobn Dec17 Mar18 qoq
Assets 585(1) 584 0
Gross Loans 566(2) 557 -1
Net Loans 416(2) 398 -3
Loan Loss Reserves 150 158 5
Customer Deposits 409 414 1
Eurosystem Funding 97 61 -37
96 LDR ratioenhanced liquidity
ELA 3 over assets
28LLRs over loans
euro30bnnew loan generation
budgeted for 2018
(1) Dec17 assets excluding seasonal agri-loan EFSF bonds eliminated in Q118 anddiscontinued operations
(2) Loans adjusted for seasonal agri-loan in Dec17 in addition quarterly rateadjusted for Q118 write-offs
7
14 OPERATIONAL PERFORMANCE | GREECE01
| EXECUTIVE SUMMARY
Greece euromn Q417 Q118 qoq
Net Revenues 466 434 -7
Operating Expenses 306 242 -21
Pre Provision Income 160 192 21
Impairments 1236 148 -88
Net results attrib to SHs 66 -66 -
Net results attrib to SHs (recurring Q118)
66 32 -
233bps NIMover assets
56 CIdown qoq
50bps NFI over assets
160bps CoRat normalization trend
Note assets adjusted for discontinued operationsNote PampL figures for Q417 and Q118 exclude one-time employee cost of euro16mn andeuro138mn respectively
16
15collateral
provisions
377358
329 322
Sep15 Dec16 Dec17 Mar18
98
01
8
15 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro07bnQ118 ΝPE quarterly
reduction
euro30bnNPE reduction in the last 12 months
euro56bnNPE reduction from Sep15 peak
Coverage
01
9
16 NPE REDUCTION PACE
| EXECUTIVE SUMMARY
342
-04 -12 -12
314
-06
308
Jun16 H216 H117 H217 Dec17 Q118 Mar18
Βank NPE Track Record (eurobn)
Piraeus reduced parent stock of NPE by 10 from Jun16 to Mar18 recorded euro06bnreduction in Q118
10
17 NPE MANAGEMENT DECREASE IN DEFAULTS amp RE-DEFAULTS TRENDS01
(11)
(07)(09) (09) (09) (09)
(03)
(07)(06)
(05) (05) (05)
(02)
GeorgeHandjini
colaou(10)
(06)
(05)
07
04 05 05 05 04
04
04 04 03 04 03
Redefaults
Defaults
Bank data amounts in eurobn
Curing RestructuringLiquidationsCollections
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
02
04
Required effort per quarter on
average till 2019
Q218 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
Note March 2018 data are preliminary
01
11
18 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
197149
104
111
109
99
Mar2018a Dec2018f Dec2019f
Piraeus aims to further reduce parent stock of
NPEs by 34 from Mar18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsbull sales
Reduction will be achieved through
NPE
NPL
euro203bn
euro259bn
euro308bn
198 243 200
00
euro70bn -euro35bn-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
12
19 ΙΜΜΙΝΕΝΤ NPΕ SALES01
| EXECUTIVE SUMMARY
Project ldquoAMOEBArdquo
bull Sale of ceuro22bn legal claim secured large SME and corporate -mainly denounced-NPLs (euro16bn gross book value)
bull Servicing entity established by the Bank
available for sale to capital providers
bull 180 borrowers 1737 properties
bull UBS acts as financial advisor
bull c30 signed NDAs with international investors
bull Non binding offers submitted on 9 February
by 12 investors
bull Sale of ceuro23bn legal claim unsecured denounced consumer NPLs (euro04bn gross book value)
bull Unsecured personal loans and credit cards
bull 132k borrowers 43 of accounts in euro1-5k bucket
bull EY acts as financial advisor
bull c23 signed NDAs with international investors
bull Non binding offers submitted on 14 March by 6 investors
Project ldquoARCTOSrdquo
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 7: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/7.jpg)
7
14 OPERATIONAL PERFORMANCE | GREECE01
| EXECUTIVE SUMMARY
Greece euromn Q417 Q118 qoq
Net Revenues 466 434 -7
Operating Expenses 306 242 -21
Pre Provision Income 160 192 21
Impairments 1236 148 -88
Net results attrib to SHs 66 -66 -
Net results attrib to SHs (recurring Q118)
66 32 -
233bps NIMover assets
56 CIdown qoq
50bps NFI over assets
160bps CoRat normalization trend
Note assets adjusted for discontinued operationsNote PampL figures for Q417 and Q118 exclude one-time employee cost of euro16mn andeuro138mn respectively
16
15collateral
provisions
377358
329 322
Sep15 Dec16 Dec17 Mar18
98
01
8
15 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro07bnQ118 ΝPE quarterly
reduction
euro30bnNPE reduction in the last 12 months
euro56bnNPE reduction from Sep15 peak
Coverage
01
9
16 NPE REDUCTION PACE
| EXECUTIVE SUMMARY
342
-04 -12 -12
314
-06
308
Jun16 H216 H117 H217 Dec17 Q118 Mar18
Βank NPE Track Record (eurobn)
Piraeus reduced parent stock of NPE by 10 from Jun16 to Mar18 recorded euro06bnreduction in Q118
10
17 NPE MANAGEMENT DECREASE IN DEFAULTS amp RE-DEFAULTS TRENDS01
(11)
(07)(09) (09) (09) (09)
(03)
(07)(06)
(05) (05) (05)
(02)
GeorgeHandjini
colaou(10)
(06)
(05)
07
04 05 05 05 04
04
04 04 03 04 03
Redefaults
Defaults
Bank data amounts in eurobn
Curing RestructuringLiquidationsCollections
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
02
04
Required effort per quarter on
average till 2019
Q218 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
Note March 2018 data are preliminary
01
11
18 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
197149
104
111
109
99
Mar2018a Dec2018f Dec2019f
Piraeus aims to further reduce parent stock of
NPEs by 34 from Mar18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsbull sales
Reduction will be achieved through
NPE
NPL
euro203bn
euro259bn
euro308bn
198 243 200
00
euro70bn -euro35bn-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
12
19 ΙΜΜΙΝΕΝΤ NPΕ SALES01
| EXECUTIVE SUMMARY
Project ldquoAMOEBArdquo
bull Sale of ceuro22bn legal claim secured large SME and corporate -mainly denounced-NPLs (euro16bn gross book value)
bull Servicing entity established by the Bank
available for sale to capital providers
bull 180 borrowers 1737 properties
bull UBS acts as financial advisor
bull c30 signed NDAs with international investors
bull Non binding offers submitted on 9 February
by 12 investors
bull Sale of ceuro23bn legal claim unsecured denounced consumer NPLs (euro04bn gross book value)
bull Unsecured personal loans and credit cards
bull 132k borrowers 43 of accounts in euro1-5k bucket
bull EY acts as financial advisor
bull c23 signed NDAs with international investors
bull Non binding offers submitted on 14 March by 6 investors
Project ldquoARCTOSrdquo
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 8: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/8.jpg)
16
15collateral
provisions
377358
329 322
Sep15 Dec16 Dec17 Mar18
98
01
8
15 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro07bnQ118 ΝPE quarterly
reduction
euro30bnNPE reduction in the last 12 months
euro56bnNPE reduction from Sep15 peak
Coverage
01
9
16 NPE REDUCTION PACE
| EXECUTIVE SUMMARY
342
-04 -12 -12
314
-06
308
Jun16 H216 H117 H217 Dec17 Q118 Mar18
Βank NPE Track Record (eurobn)
Piraeus reduced parent stock of NPE by 10 from Jun16 to Mar18 recorded euro06bnreduction in Q118
10
17 NPE MANAGEMENT DECREASE IN DEFAULTS amp RE-DEFAULTS TRENDS01
(11)
(07)(09) (09) (09) (09)
(03)
(07)(06)
(05) (05) (05)
(02)
GeorgeHandjini
colaou(10)
(06)
(05)
07
04 05 05 05 04
04
04 04 03 04 03
Redefaults
Defaults
Bank data amounts in eurobn
Curing RestructuringLiquidationsCollections
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
02
04
Required effort per quarter on
average till 2019
Q218 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
Note March 2018 data are preliminary
01
11
18 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
197149
104
111
109
99
Mar2018a Dec2018f Dec2019f
Piraeus aims to further reduce parent stock of
NPEs by 34 from Mar18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsbull sales
Reduction will be achieved through
NPE
NPL
euro203bn
euro259bn
euro308bn
198 243 200
00
euro70bn -euro35bn-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
12
19 ΙΜΜΙΝΕΝΤ NPΕ SALES01
| EXECUTIVE SUMMARY
Project ldquoAMOEBArdquo
bull Sale of ceuro22bn legal claim secured large SME and corporate -mainly denounced-NPLs (euro16bn gross book value)
bull Servicing entity established by the Bank
available for sale to capital providers
bull 180 borrowers 1737 properties
bull UBS acts as financial advisor
bull c30 signed NDAs with international investors
bull Non binding offers submitted on 9 February
by 12 investors
bull Sale of ceuro23bn legal claim unsecured denounced consumer NPLs (euro04bn gross book value)
bull Unsecured personal loans and credit cards
bull 132k borrowers 43 of accounts in euro1-5k bucket
bull EY acts as financial advisor
bull c23 signed NDAs with international investors
bull Non binding offers submitted on 14 March by 6 investors
Project ldquoARCTOSrdquo
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 9: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/9.jpg)
01
9
16 NPE REDUCTION PACE
| EXECUTIVE SUMMARY
342
-04 -12 -12
314
-06
308
Jun16 H216 H117 H217 Dec17 Q118 Mar18
Βank NPE Track Record (eurobn)
Piraeus reduced parent stock of NPE by 10 from Jun16 to Mar18 recorded euro06bnreduction in Q118
10
17 NPE MANAGEMENT DECREASE IN DEFAULTS amp RE-DEFAULTS TRENDS01
(11)
(07)(09) (09) (09) (09)
(03)
(07)(06)
(05) (05) (05)
(02)
GeorgeHandjini
colaou(10)
(06)
(05)
07
04 05 05 05 04
04
04 04 03 04 03
Redefaults
Defaults
Bank data amounts in eurobn
Curing RestructuringLiquidationsCollections
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
02
04
Required effort per quarter on
average till 2019
Q218 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
Note March 2018 data are preliminary
01
11
18 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
197149
104
111
109
99
Mar2018a Dec2018f Dec2019f
Piraeus aims to further reduce parent stock of
NPEs by 34 from Mar18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsbull sales
Reduction will be achieved through
NPE
NPL
euro203bn
euro259bn
euro308bn
198 243 200
00
euro70bn -euro35bn-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
12
19 ΙΜΜΙΝΕΝΤ NPΕ SALES01
| EXECUTIVE SUMMARY
Project ldquoAMOEBArdquo
bull Sale of ceuro22bn legal claim secured large SME and corporate -mainly denounced-NPLs (euro16bn gross book value)
bull Servicing entity established by the Bank
available for sale to capital providers
bull 180 borrowers 1737 properties
bull UBS acts as financial advisor
bull c30 signed NDAs with international investors
bull Non binding offers submitted on 9 February
by 12 investors
bull Sale of ceuro23bn legal claim unsecured denounced consumer NPLs (euro04bn gross book value)
bull Unsecured personal loans and credit cards
bull 132k borrowers 43 of accounts in euro1-5k bucket
bull EY acts as financial advisor
bull c23 signed NDAs with international investors
bull Non binding offers submitted on 14 March by 6 investors
Project ldquoARCTOSrdquo
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 10: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/10.jpg)
10
17 NPE MANAGEMENT DECREASE IN DEFAULTS amp RE-DEFAULTS TRENDS01
(11)
(07)(09) (09) (09) (09)
(03)
(07)(06)
(05) (05) (05)
(02)
GeorgeHandjini
colaou(10)
(06)
(05)
07
04 05 05 05 04
04
04 04 03 04 03
Redefaults
Defaults
Bank data amounts in eurobn
Curing RestructuringLiquidationsCollections
Write-offs
NPEs euro338 euro333 euro326
Q416 Q117 Q217
02
04
Required effort per quarter on
average till 2019
Q218 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
Note March 2018 data are preliminary
01
11
18 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
197149
104
111
109
99
Mar2018a Dec2018f Dec2019f
Piraeus aims to further reduce parent stock of
NPEs by 34 from Mar18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsbull sales
Reduction will be achieved through
NPE
NPL
euro203bn
euro259bn
euro308bn
198 243 200
00
euro70bn -euro35bn-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
12
19 ΙΜΜΙΝΕΝΤ NPΕ SALES01
| EXECUTIVE SUMMARY
Project ldquoAMOEBArdquo
bull Sale of ceuro22bn legal claim secured large SME and corporate -mainly denounced-NPLs (euro16bn gross book value)
bull Servicing entity established by the Bank
available for sale to capital providers
bull 180 borrowers 1737 properties
bull UBS acts as financial advisor
bull c30 signed NDAs with international investors
bull Non binding offers submitted on 9 February
by 12 investors
bull Sale of ceuro23bn legal claim unsecured denounced consumer NPLs (euro04bn gross book value)
bull Unsecured personal loans and credit cards
bull 132k borrowers 43 of accounts in euro1-5k bucket
bull EY acts as financial advisor
bull c23 signed NDAs with international investors
bull Non binding offers submitted on 14 March by 6 investors
Project ldquoARCTOSrdquo
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 11: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/11.jpg)
01
11
18 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
197149
104
111
109
99
Mar2018a Dec2018f Dec2019f
Piraeus aims to further reduce parent stock of
NPEs by 34 from Mar18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsbull sales
Reduction will be achieved through
NPE
NPL
euro203bn
euro259bn
euro308bn
198 243 200
00
euro70bn -euro35bn-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
12
19 ΙΜΜΙΝΕΝΤ NPΕ SALES01
| EXECUTIVE SUMMARY
Project ldquoAMOEBArdquo
bull Sale of ceuro22bn legal claim secured large SME and corporate -mainly denounced-NPLs (euro16bn gross book value)
bull Servicing entity established by the Bank
available for sale to capital providers
bull 180 borrowers 1737 properties
bull UBS acts as financial advisor
bull c30 signed NDAs with international investors
bull Non binding offers submitted on 9 February
by 12 investors
bull Sale of ceuro23bn legal claim unsecured denounced consumer NPLs (euro04bn gross book value)
bull Unsecured personal loans and credit cards
bull 132k borrowers 43 of accounts in euro1-5k bucket
bull EY acts as financial advisor
bull c23 signed NDAs with international investors
bull Non binding offers submitted on 14 March by 6 investors
Project ldquoARCTOSrdquo
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 12: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/12.jpg)
12
19 ΙΜΜΙΝΕΝΤ NPΕ SALES01
| EXECUTIVE SUMMARY
Project ldquoAMOEBArdquo
bull Sale of ceuro22bn legal claim secured large SME and corporate -mainly denounced-NPLs (euro16bn gross book value)
bull Servicing entity established by the Bank
available for sale to capital providers
bull 180 borrowers 1737 properties
bull UBS acts as financial advisor
bull c30 signed NDAs with international investors
bull Non binding offers submitted on 9 February
by 12 investors
bull Sale of ceuro23bn legal claim unsecured denounced consumer NPLs (euro04bn gross book value)
bull Unsecured personal loans and credit cards
bull 132k borrowers 43 of accounts in euro1-5k bucket
bull EY acts as financial advisor
bull c23 signed NDAs with international investors
bull Non binding offers submitted on 14 March by 6 investors
Project ldquoARCTOSrdquo
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 13: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/13.jpg)
13
110 IMPROVED LIQUIDITY amp FUNDING POSITION01
| EXECUTIVE SUMMARY
222
119
57
-3621
00
167
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 +05 414
495
Dec14 Jun15 Dec15 Dec16 FY17 Q118 Mar18
bull Positive deposit movement in Q118
bull Consisted deposit inflows
market share (private sector)
286 (Dec17)
288(Mar18)
bull Eurosystem funding decreased by euro36bn in Q118
bull Repos in Q118 with non-ECB eligible collateral at euro23bn
bull ELA use has dropped further to euro1bn area in mid May18
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 14: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/14.jpg)
14
111 SOUND CAPITAL RATIOS01
| EXECUTIVE SUMMARY
euro bn | Mar18 Mar18 proforma
CET-1 Capital 70 70
RWAs 502 487
CET-1 ratio 140 144
CET-1 | Phased-In Ratio
SREP Capital Requirement (TSCR)
Piraeus Bank maintains capital ratios
in excess of SREP capital requirements
Phasing impact of c60bps in Q118
CET1 ratio on fully loaded basis at 114
2017 2018
Pillar I CET1 450 450
Pillar 2 Requirement (P2R) 375 375
AT1 150 150
T2 200 200
Total SREP Capital Requirement (TSCR) 1175 1175
Conservation buffer (CB) 125 1875
Overall Capital Requirement (OCR) 1300 13625
Note pro-forma ratio adjusted for asset disposals under way (Romania Serbia and 2 NPE disposals)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 15: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/15.jpg)
112 CAPITAL STRENGTHENING PLAN UNDER WAY01
| EXECUTIVE SUMMARY15
Piraeus Bankrsquos Capital Measures
Action Time Status RWAs Impact
A Sale of Assets | Signed SPAs or Non-Binding Offers
gtgt Avis [operating leasing company] Q118 ~euro02 bn
gtgt Serbia [banking subsidiary] Q218 ~euro03 bn
gtgt Amoeba [secured NPL portfolio] Q218~euro06 bn
gtgt Arctos [unsecured NPL portfolio] Q218
gtgt Romania [banking subsidiary] Q218 ~euro06 bn
RWAs Impact | Sub-total ~euro17bn
B Sale of Assets | Under Way
gtgt Bulgaria | Albania [banking subsidiaries] Q218 ~euro12bn
C Other De-Risking Actions | Under Way YE18 ~euro06bn
Total ~euro35bn
Piraeus Bank is executing a capital
strengthening plan since 2017
Post actions to increase NPE coverage
(2017 clean-up amp IFRS9 first time
adoption) Piraeus is now focusing on
accelerated balance sheet de-risking to
facilitate the execution of its business
plan
On top of these actions Piraeus is also
exploring certain alternatives in issuing
non-dilutive instruments
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 16: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/16.jpg)
16
01
| EXECUTIVE SUMMARY
113 PIRAEUS BANKrsquoS STRATEGIC FOCUS
Streamlining of business to pave the way for continuing de-risking
bull Restructuring Plan conclusion
bull ELA reliance elimination
bull Inorganic initiatives for NPLs
bull Growth in Core Bank
bull Cost optimisation
bull Digitisation acceleration
Improved PPI and normalized
provisioning to show earning
power
bull Medium-term targets to be achieved as per the ldquoAgenda 2020rdquo strategic plan
bull Strong potential for growth on the back of new loan generation
bull Sustainable healthy returns
Significant strides forward in using our strong capital base to strengthen reserves
bull Best-in-class NPL reduction
bull Q4 provisioning clean-up
bull IFRS9 boost to coverage ratio
bull Viable restructurings amp increased
collections for NPENPL portfolio
bull Satisfactory deposit growth
2019 - 202020182017
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 17: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/17.jpg)
02F I N A N C I A L S02F I N A N C I A L S02F I N A N C I A L P E R F O R M A N CE
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 18: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/18.jpg)
02
18
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
160
22
414
2415
Other
Cash
AssetMix
Total
Securities
Net Loans
PPE
635
amounts in eurobn
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
635
FundingMix
Mar18 Mar18
Debt Securities
bull Funding mix enhanced on the back of lower ELA reliance improved market access and increasing customer deposits
bull Increased interbank repo balances at cost lower than ELA
35
78
172
259
0426
40
21bull EFSF bonds dropped to zero as of Jan18
in the context of short term measures for the Hellenic Republicrsquos debt relief (euro168bn at the peak)
bull Asset side comprised 65 by customer loans
() other includes DTA loans amp advances to banks intangible assets discontinued operations
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 19: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/19.jpg)
19
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Mar17 Dec17 Mar18 qoq yoy
CashBalances with Central Banks 2821 1449 1524 5 -46
Loans amp Advances to Banks 159 2148 3532 64 -
Gross Loans 63787 60260 57702 -4 -10
(Loan Loss Reserves) (16370) (15541) (16344) 5 0
Securities 14113 3978 2409 -39 -
- ow EFSF ΕSM Bonds 10859 1465 0 - -
Intangibles amp Goodwill 276 301 305 1 11
Fixed Assets 2307 2180 2201 1 -5
Deferred Tax Assets 5330 6543 6587 1 24
Other Assets 3698 3815 3862 1 4
Assets of Discontinued Ops 527 2284 1781 -22 -
Total Assets 76647 67417 63559 -6 -17
Due to Banks 23680 11435 8846 -23 -63
Deposits 40960 42715 43151 1 5
Debt Securities 68 435 432 -1 -
Other Liabilities 2041 1840 1762 12 -10
Liabilities of Discontinued Ops 99 1641 1446 -12 -
Total Liabilities 66848 57872 55717 -4 -17
Total Equity 9799 9544 7842 -18 -20
Total Liabilities amp Equity 76647 67417 63559 -6 -17
1
2
3
4
As of Jan18 the last round of EFSF bond exchange was
settled and the relevant balance was brought to zero
3 Eurosystem funding at euro61bn in Mar18 down euro94bn yoy
ΕFSF repos balance to zero in Nov17 other repos with non
ECB eligible collateral at euro23bn
1
2
Customer deposits up euro05bn qoq continuing the upward
trend started in mid 2017
4
Q118 delta in gross loans reflects mainly technicalities such
as seasonal agri-loan repayment and write-offs indicating
loan demand is gradually being restored
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 20: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/20.jpg)
20
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
Q118 OpEx decreased by 6 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this has been the lsquocost reduction programmersquo that
started bearing fruits with the launch of VES in early 2018
as well as other actions aiming at admin costs decline
1
2
NII was impacted by the sizeable provisioning of Q417
(euro12bn) and the first time adoption of the IFRS9
accounting policy for exposures in Stage 3 (euro10bn) On the
other hand NFI was higher by 2 yoy
Q118 loan impairment at euro164mn in Q118 against
euro258mn in Q117 following the substantial increase in
coverage levels in previous quarter and the IFRS9
transition
3
4
Q417 Q118 qoq Q117 yoy
Net Interest Income 398 360 -9 429 -16
Net Fee Income 87 79 -10 77 2
Core Banking Income 485 439 -10 506 -13
Trading Income (2) 11 - 31 -
Other Income 1 12 - (2) -
Total Net Revenues 484 462 -5 535 -14
Total Net Revenues (recurring) 484 462 -5 515 -10
Employee Costs (157) (264) 68 (136) 36
Employee Costs (recurring) (141) (126) -11 (136) -7
Administrative Expenses (154) (105) -32 (115) -8
Depreciation amp Other (29) (28) -4 (25) 12
Total Operating Costs (341) (397) 17 (276) 15
Total Operating Costs (recurring) (324) (259) -20 (276) -6
Pre Provision Income 144 65 -55 260 -44
Pre Provision Income (recurring) 160 203 27 239 -15
Result from Associates (8) (8) 1 (7) 17
Impairment on Loans (1182) (164) -86 (258) -36
Impairment on Other Assets (124) (9) -93 (10) -9
Profit Before Tax (1170) (117) - (15) -
Profit Before Tax (recurring) (1170) 22 - (15) -
Tax 1180 35 - 13 -
Net results attrib to SHs 12 (80) - (2) -
Net results attrib to SHs (recurring Q118) 12 18 - (2) -
Discontinued Ops Result (124) (2) - (6) -
1
2
4
3
Q118 Group recurring PPI decreased 15 yoy as the
significant progress on cost reduction and the continuous
increase in net fee and commission income was
outstripped by the decline in net interest income
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to theCentral Bank In addition VES and other extraordinary staff costs of euro138mn and euro16mn wereclassified as one-off items in Q118 and Q417 respectively
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 21: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/21.jpg)
02 24 PampL IN GREECE
| FINANCIAL PERFORMANCE
Note for Q117 euro21mn were flagged as one-off stemming from the sales of EFSF bonds to the CentralBank In addition VES and other extraordinary staff costs of euro138mn and euro16mn were classified asone-off items in Q118 and Q417 respectively
21
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Revenues 466 434 -7 504 -14
Total Revenues (recurring) 466 434 -7 483 -10
OpEx (322) (380) -18 (260) 46
OpEx (recurring) (306) (242) -21 (260) -7
PPI 143 54 -62 245 -78
PPI (recurring) 160 192 21 224 -14
Impairment on loans (1128) (159) -86 (255) -
Pre tax result (1100) (101) - (26) -37
Net results attrib to SHs 66 (66) - (13) -
Net results attrib to SHs (recurring Q118) 66 32 - (13) -
Greek Operations (euromn)
2
3
2
3
NII was impacted by the sizeableprovisioning of Q417 and the first timeadoption of IFRS9 while NFI posted anincrease of 1 yoy
OpEx decreased in Q118 by 7 yoy on theback of containment of administrativeexpenses and crystallization from 2016 and2017 VES benefit
Pre provision income at euro192mn in Q118posting a decrease of 14 yoy
1
1
Q118 loan impairment at euro159mn in Q118against euro255mn in Q117 a de-escalationthat comes on the back of sizeable increasein provisioning in previous quarter and theIFRS9 transition as well as improvingmarket conditions
4
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 22: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/22.jpg)
02
22
25 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS
Calendar impact in Q118 (2 days less versus Q417)
1
2
Lower accruing balance on the back of the increased
provisions in Q417 (euro12bn) and IFRS9 transition euro16bn
in Q118
Q417 Q118
Fixed Income Securities 23 17
Net Loans 487 449
ow in Greece 462 425
Other Assets 23 23
Interest Income 533 489
Customer Deposits 52 51
ow in Greece 51 50
Due to Banks 9 14
ow ELA 24 13
Other Liabilities amp Equity 73 63
Interest Expense 135 128
Net interest Income 398 360
NIM 1 257 233
1 on assets excluding EFSF bonds and discontinued operations
| FINANCIAL PERFORMANCE
Net Interest Income Decomposition (euromn)
398
-21 -8 -8
360
Q417 IFRS9 stage 3amp Q4 LLPimpact
Calendareffect
Deleverage Q118
amounts in eurobn
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 23: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/23.jpg)
02
23
26 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118
Deposits 051 047 046 045 046 046
Sight 059 054 052 050 055 052
Savings 010 008 008 008 008 007
Time 086 082 081 078 076 075
avg 3m euribor
-031 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360
Mortgages 227 222 219 218 217 215
Consumer 831 763 762 730 714 684
Business 419 423 412 401 392 390
Actual rates shown above refer to total Greek banking operations quarterly averages
Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
Loan Rates
Q118 Total Stock Front Book
Mortgages 22 33
Consumer 68 96
Business 39 51
Total 36 53
Loan Rates Front Book Rates Steadily Above Legacy Book
Q118
Business Loan Rates Total Stock Front Book
Corporate amp SME 36 49
SBL 60 76
Total 39 51
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 24: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/24.jpg)
24
27 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo was commenced in Q417
to re-invent the operational model of the Bank
bull 16 key initiatives to reduce the cost base in
Greece by gteuro200mn during period 2018-2020
Wholesale efficiency
gains
Retail efficiency
gains2016 2020
Effects of cost initiatives eurobn 2017-2020
2017
Cost savings of more than euro200mn for the 3-year period 2018-2020
2013Reshape
corporate functions
Redesign core
processes
Procurement efficiency
gains
| FINANCIAL PERFORMANCE
initiatives in placeeuro200mn
euro80mn actions already been taken
euro35mn admin
euro45mn VES
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 25: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/25.jpg)
03A S S E T Q UA L I T Y
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 26: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/26.jpg)
03
26
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data Dec17 excluding seasonal agri-loan now fully repaid
NPLs (euromn) Mar18
Business 13360
Mortgages 4490
Consumer 2634
TOTAL 20484
NPLs (euromn) Mar18
Greece 19673
International 811
TOTAL 20484
Group NPL Ratio per Product Category
Group NPL Mix
353 359
292
485
355 358299
486
Total Business Mortgages Consumer
Dec17
Mar18
NPEs (euromn) Mar18
Business 22787
Mortgages 6232
Consumer 3131
TOTAL 32150
NPEs (euromn) Mar18
Greece 31026
International 1124
TOTAL 32150
Group NPE Ratio per Product Category
Group NPE Mix
545589
415
590557611
415
578
Total Business Mortgages Consumer
Dec17
Mar18
NPE mix 71 19 10 NPL mix 65 22 13
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 27: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/27.jpg)
254
197
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
03
27
32 DOMESTIC NPE FORMATION ΙΝ NEGATIVE TERRITORY
| ASSET QUALITY
347
310
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
NPE Stock Development (eurobn)
-euro37bnNPEpeak
NPE Pre Write-off Formation (eurobn)
04 03
02
00-01
01
00
-02-01
-03
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
Note NPE data is on balance sheet
04
00
0301
-02 -02 -03
-05
05
-03-04
-07
00
Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118
NPL peak
-euro57bn
NPL Stock Development (eurobn) NPL Pre Write-off Formation (eurobn)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 28: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/28.jpg)
03
28
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 66 28 134 228
Mortgages 09 09 45 62
Consumer 03 02 26 31
TOTAL 77 39 205 322
NPEs per Bucket (Mar18)
51 52
32
7967
73
37
8880
89
44
94
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Mar18)
Forborne Loans (Mar18 euro144bn)
NPEF 0dpd39
NPEF 1-30dpd11
NPEF 31-90dpd12
NPEF gt90dpd12
PF26
euro57bn forborne with 0dpd
bull ow euro35bn with less than 12 months since restructuring
NPΕ mix 24 12 64 100
[1] [2] [3] [1+2+3]
pace of NPE exits from restructurings evidently to be accelerated
bull euro03bn in 2017 per quarter on average
bull euro04bn est 2018 per quarter on average
bull euro07bn est 2019 per quarter on average
| ASSET QUALITY
Note NPE on balance sheet data
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 29: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/29.jpg)
03
29
34 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q118
| ASSET QUALITY
-41 -33
-208
47
-187
131
236
-120-53
19
-19
9
-47 -61
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Greek NPL Formation by Segment
Notes pre write-off quarterly NPL formation in euromn NPE on balance sheet data
Greek NPE Formation by Segment
Business Mortgages Consumer
334
-254-358
-612
-57
89
-12 -48 -32
58 28
-43 -39 -47 -18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
NPE formation was negative in all segments in Q118 with business having a significant negative movements of NPEs formation similar to Q317
NPL formation remained negative for business and consumer while mortgages had a slightly positive formation
Business Mortgages Consumer
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 30: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/30.jpg)
03
30 | ASSET QUALITY
35 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Mar18LLR
Loans
Business 11876 319
Mortgages 1984 132
Consumer 2484 458
TOTAL 16344 283
LLRs (euromn) Mar18LLR
Loans
Greece 15844 285
International 500 247
TOTAL 16344 283
75
85
39
828089
44
94
Total Business Mortgages Consumer
Dec17 Mar18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 28 Over Loans
NPL mix 65 22 13
Total NPE coverage ratio at 98 for business portfolio including
collateral
Strong NPL coverage ratio at 89 for the business portfolio that
comprise 65 of total NPL stock
Cumulative provisions at 28 over Group gross loans
47 50
28
67
51 52
32
79
Total Business Mortgages Consumer
Dec17 Mar18
NPE mix 71 19 10
Note NPE on balance sheet data
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 31: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/31.jpg)
03
31
36 NPE STOCK INCLUDES euro77ΒΝ OF LOANS WITH ZERO DAYS OF ARREARS
| ASSET QUALITY
355
557
GroupNPL
90dpd
ImpliedGroup
NPE
+139
Piraeus Group NPL to NPE Reconciliation (Mar2018) Piraeus Group NPL-NPE-LLR Data per Product (Mar2018)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 373 228 134 28 58 07
Mortgages 150 62 45 00 17 00
Consumer 54 31 26 00 05 00
Total 577 322 205 29 80 08
eurobn NPEs NPLs LLRsCoverage
NPEs NPLs
Business 228 134 119 52 89
Mortgages 62 45 20 32 44
Consumer 31 26 25 79 94
Total 322 205 163 51 80
+202Coverage
80
Coverage
51
+50
Mar18
Group NPL gt90dpd
Mar18
GroupNPE
Impaired ContagionForborne
+13
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro77bn out of euro117bn 0 dpd
Notes NPE on balance sheet data
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 32: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/32.jpg)
9417
Cash coverage Collateral coverage
03
32
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
89
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
52
46
Cash coverage Collateral coverage
7918
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 129
Total 110
Total 111
Total 98
Total 98
Total 97
Total NPE
coverage at 98Total NPL
coverage at 123
32
66
Cash coverage Collateral coverage
44
66
Cash coverage Collateral coverage
Notes collateral capped at loan amount
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 33: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/33.jpg)
33
38 AUCTIONSrsquo PROGRESS03
6030
10
completed
non completed
cancelled due to debtor request for restructuring
in Feb-Apr 2018vs 396 in FY2017
410 auctionsProperty auctions 2014 2015 2016 2017
2018Feb- Apr
auctions carried out by Piraeus 124 124 219 396 410
bull Measure for carrying out solely e-auctions of foreclosed property commenced in 21 Feb
2018 The measure affects all auctions regardless of when a foreclosure notice was
imposed
bull The Code of Civil Procedures introduces the preferential coverage of the Banksrsquo claims
from auctionsrsquo proceeds provided that the following cumulative conditions are satisfied
i) new financing post 17012018 ii) with new underwritingmortgageor pledged
collateral of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 34: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/34.jpg)
04EU STRESS TEST
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 35: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/35.jpg)
35
41 STRESS TEST MACRO ASSUMPTIONS 2018 VS 2015 EXERCISE04
| EU STRESS TEST
Source EBA compound growth rates
bull The adverse scenario assumes a 33 GDP
decline in 2018-2020 for the 2018 ST
compared to a 10 decline of the 2015
exercise (cumulatively in the 25years from
Jun15 to Dec17)
bull GDP is assumed to grow 75 in 2018-2020
under the baseline scenario of 2018 ST in the
2015 exercise GDP was assumed to contract
35 (cumulatively in the 25years from
Jun15 to Dec17)
Adverse Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () -13 -21 02 -33 -33 -39 03 -68
HICP annual growth rate () 00 -11 -18 -28 -07 06 -10 -11
Unemployment rate (end year) 206 200 191 -25 273 281 275 10
Residential real estate prices () -73 -67 -36 -166 -78 -88 -78 -225
Commercial real estate prices () -92 -61 -22 -166 -36 -34 -21 -88
2018 Stress Test 2015 Stress Test
Baseline Scenario 2018 2019 2020 3y 2015 2016 2017 3y
Real GDP annual growth () 24 25 24 75 -23 -13 27 -10
HICP annual growth rate () 09 10 11 29 -04 15 09 20
Unemployment rate (end year) 199 183 166 -49 269 271 257 -08
Residential real estate prices () -05 05 10 08 -75 -50 -10 -130
Commercial real estate prices () 03 03 03 08 -34 -12 11 -35
1
2
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 36: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/36.jpg)
36
42 CET-1 DEPLETION IN 2018 VS 2015 EXERCISE04
55 52
108
-03
-78 -24
Q215 CET-1 Starting pointQ215 CET-1
post AQR adjustment
Baseline scenarioeffect
2018 CET-1 Adverse scenarioeffect
2018 CET-1
148 145151
-03
-89
59
Q417 CET-1 Starting pointQ417 CET-1
restated for IFRS9
Baseline scenarioeffect
2020 CET-1 Adverse scenarioeffect
2020 CET-1
20
18
EU-W
ide
Stre
ssTe
st2
01
5G
ree
kB
anks
Stre
ssTe
st
1
2
Baseline effect of -03 in 2018
exercise just as in 2015
Adverse effect of -89 in 2018 ST
exercise demonstrating that the
Bank can withstand a higher
adverse effect when compared to
the 2015 ST adverse effect which
was -78
Note starting point in 2018 exercise adjusted for IFRS9 phase-in 2015 starting point adjusted for AQR which is not applicable to 2018
| EU STRESS TEST
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 37: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/37.jpg)
37
43 STRESS TEST PPI amp LLR PROJECTION IN 2018 VS 2015 EXERCISE04
Prudent assumptions adopted on capital
generation capacity impacting the PPI forecast
estimates
the 3-year cumulative baseline PPI was
assumed at euro24bn in 2015 ST while the
2018 ST PPI was at euro21bn for the 3-year
period
the 3-year cumulative adverse LLR was at
euro35bn in the 2018 ST adverse relatively at
the same level as in 2015 albeit de-risking
efforts taken by the Bank in the meantime
the Stress Test Methodology is based on a
static balance sheet approach and in
principle does not incorporate planned or
ongoing initiatives
2431
456
1858
3637
2148
948 838
3542
PPI Baseline PPI Adverse LLR Baseline LLR Adverse
2015 2018
ST estimate 3Y PPI
ST estimate 3Y LLRs
1
2
3
amounts in euromn
| EU STRESS TEST
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 38: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/38.jpg)
38
44 CUMULATIVE CET-1 IMPACT BASELINE SCENARIO OF 2018 STRESS TEST04
151
-03
148
8920
-67-16 -08
-22
145
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Baseline CET-1 Impact -03 ppts Depletion
bull Under the baseline scenario
CET-1 depletion amounts to
-03ppts resulting in a 3year
end CET-1 ratio of 145
1
bull Distribution of projected credit
losses 2018 euro05bn 2019
euro02bn 2020 euro02bn driving
the ratio of LLRs to gross loans
to 31 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk CoCo payment REO other phased-in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 39: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/39.jpg)
39
45 CUMULATIVE CET-1 IMPACT ADVERSE SCENARIO OF 2018 STRESS TEST04
151
-03
148
6720
-67
-69 -08-32
59
2017 CET-1 5 IFRS9Phase-in
2017 CET-1post
adjustment
NII NFCI OpEx Credit Risk AdditionalIFRS9
Phase-in
Other 2020 CET-1
Cumulative Adverse CET-1 Impact -89 ppts Depletion
bull Under the adverse scenario
CET-1 depletion amounts to
-89ppts resulting in a 3year
end CET-1 ratio of 59
1
bull Distribution of projected credit
losses 2018 euro24bn 2019
euro07bn 2020 euro05bn driving
the ratio of LLRs to gross loans
to 35 from 29
2
Depletion vs 2017 reported CET-1 level post restatement due to IFRS9 transition
Other incorporates effects stemming by operational risk REO other phased in deductions
bull Exercise assumes Opex remains
static at 2017 levels
3
| EU STRESS TEST
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 40: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/40.jpg)
04L I Q U I D I T Y05L I Q U I D I T Y
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 41: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/41.jpg)
05 51 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY41
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016 2017
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017
ELA
ECB
Eurosystem at euro25bn in Mar18 (ELA euro14bn ECB euro11bn) -euro102bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro34bn in Mar18 -euro17bn vs Jun15 peak
euro14
euro11euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017
100
150
200
250
300 Deposits
Currency in Circulation
euro34
euro140
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 105 in Mar18 -33pp vs Jun15 peak
Deposits up euro67bn in Mar18 yoy Loans down euro127bn yoy in Mar18 ow euro57bn write-offs
euro180
euro126
105
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro4bn FX fluctuations and other adjustments
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 42: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/42.jpg)
26 23
74 77
Mar18 Mar18
Business Retail
05
42
52 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36 40
64 60
Mar18 Mar18
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Deposit Movement by Segment (eurobn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (eurobn)
361
-10
+04 +09+29 393
-13
+02+09 +18 409 +05 414
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118 Mar18
PiraeusQ118delta
Mar18balance
Mass|Farmers - 156
Affluent|Private Banking +01 139
SB - 34
SME - 11
Corporate -04 22
Govt amp Other +08 53
Total +05 414
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 43: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/43.jpg)
05
43
53 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ECB 141 160 90 45 55 42 40 40
EFSF|ESM Bonds 57 153 73 28 39 25 15 02
GGBs and T-bills 10 - 09 09 09 09 10 10
L3723 68 - - - - - - -
Other 06 07 08 08 07 08 15 28
ELA - 167 119 110 103 78 57 21
GGBs and T-bills - 08 - - - - - -
L3723 - 57 - - - - - -
Loans amp Other - 102 119 110 103 78 57 21
Total 141 327 209 155 158 120 97 61
Eurosystem Funding (eurobn)
149 151 146 160 144 124 11190
45 55 42 40 40
154
222212 167
161
144127
119
110 103
7857
21
100
141
303
373 358
327304
268
238209
155 158
120
97
61
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA utilization drops to euro1bn area in mid May 2018
ELA collateral buffer estimated at euro12bn based on existing collateral
valuation and haircuts
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 44: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/44.jpg)
05
44
54 INTERBANK REPO ACTIVITY
| LIQUIDITY
Mar
16
Ap
r1
6
May
16
Jun
16
Jul1
6
Au
g16
Sep
16
Oct
16
No
v1
6
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
Jul1
7
Au
g17
Sep
17
Oct
17
No
v1
7
Dec
17
Jan
18
Feb
18
Mar
18
Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (eurobn)
Following the completion of the ldquoESM bond exchangerdquo in the framework of short term measures for Greek
Public Debt relief Piraeus Bank holds no EFSFESM bonds as of late-November 2017
Initiation of interbank repo activity with non-ECB eligible collateral in the past 12 months balance at euro23bn
at the end of Mar18 at a cost below ELA
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
23
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 45: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/45.jpg)
06A P P E N D I X
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 46: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/46.jpg)
06
46 | APPENDIX
61 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q417 Q118 qoq Q117 yoy
Net Interest Income 376 340 -10 408 -16
Net Fee Income 81 73 -10 73 1
Trading amp Other Income 8 21 - 24 -13
Total Net Revenues 466 434 -7 504 -14
Total Net Revenues (recurring) 466 434 -7 483 -10
Employee Costs (151) (257) 71 (130) 98
Employee Costs (recurring) (134) (119) -11 (130) -8
Administrative Expenses (144) (96) -33 (106) -9
Depreciation amp Other (27) (26) -3 (24) 12
Total Operating Costs (322) (380) 18 (260) 46
Total Operating Costs (recurring) (306) (242) -21 (260) -7
Pre Provision Income 143 54 -62 245 -78
Pre Provision Income (recurring) 160 192 21 224 -14
Result from Associates (7) (8) 18 (8) -6
Impairment on Loans (1128) (159) -86 (255) -37
Impairment on Other Assets (109) 11 - (8) -
Pre Tax Result (1100) (101) - (26) -
Pre Tax Result (recurring) (1100) 37 (26) -
Tax 1164 35 - (13) -
Net Result Attrib to SHs 66 (66) - (13) -
Net Result Attrib to SHs (recurring) 66 32 - (13) -
Discontinued Operations Result (14) (4) - (1) -
Q417 Q118 qoq Q117 yoy
22 20 -8 21 -7
6 6 -4 5 16
(9) 2 - 5 -53
19 28 48 31 -11
19 28 48 31 -11
(7) (7) 4 (6) 17
(7) (7) 4 (6) 17
(10) (9) -8 (9) 4
(2) (1) -8 (1) 8
(18) (17) -4 (16) 9
(18) (17) -4 (16) 9
0 10 - 15 -32
0 10 - 15 -32
(2) (1) -68 1 -
(54) (5) -91 (3) 53
(15) (20) - (2) -
(71) (15) - 11 -
(71) (15) - 11 -
16 0 - 0 -
(55) (14) - 11 -
(55) (14) - 11 -
(110) 2 - (4) -
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 47: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/47.jpg)
06
47 | APPENDIX
62 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 64947 63787 62048 61035 58627 57702 -10 -2
Business 42511 41719 40389 39645 37962 37276 -11 -2
Mortgages 16162 15950 15696 15507 15183 15007 -6 -1
Consumer 6274 6118 5964 5883 5482 5419 -11 -1
Greece 61296 60216 58905 57936 56597 55680 -8 -2
Business 39792 39069 38027 37312 36317 35655 -9 -2
Mortgages 15707 15502 15330 15143 14973 14797 -5 -1
Consumer 5797 5646 5548 5480 5307 5229 -7 -1
Intrsquol 3650 3571 3143 3099 2030 2022 -43 0
Business 2719 2650 2362 2333 1645 1621 -39 -1
Mortgages 455 448 366 364 210 210 -53 0
Consumer 476 472 416 402 175 190 -60 9
Deposits Evolution (euromn)
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 yoy qoq
Group 42365 40960 40918 41822 42715 43151 5 1
Savings 14995 14294 14379 14285 15134 14945 5 -1
Sight 11190 10676 10860 11372 11682 10982 3 -6
Time 16179 15990 15679 16165 15900 17225 8 8
Greece 39322 38036 38185 39075 40889 41404 9 1
Savings 14613 14001 14069 13967 14825 14624 4 -1
Sight 10536 9964 10123 10592 11125 10473 5 -6
Time 14172 14071 13993 14516 14938 16308 16 9
Intrsquol 3043 2924 2733 2746 1826 1747 -40 -4
Savings 382 293 310 318 309 321 9 4
Sight 654 712 737 780 556 509 -29 -8
Time 2007 1919 1686 1649 961 917 -52 -5
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards whereas Piraeus Bank Romania from Dec17 onwards
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 48: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/48.jpg)
06
48 | APPENDIX
63 OVERVIEW OF INTERNATIONAL OPERATIONS
AlbaniaBulgaria
London Frankfurt
Branches () 72
Employees () 993
Assets 1496
Net loans 747
Deposits 1098
Branches () 39
Employees () 445
Assets 589
Net loans 172
Deposits 447
Branch () 1
Employees () 20
Assets 729
Net loans 523
Deposits 18
Branch () 1
Employees () 11
Assets 168
Net loans 26
Deposits 134
(euromn as at Mar2018)
Branches
Branches () 131
Employees () 1855
Assets euro31bn
Net loans euro15bn
Deposits euro17bn
Total International1
Market Shares Loans Deposits
Albania 56 60
Bulgaria 31 28
Ukraine 02 02
Subsidiaries
sup1Consolidated financial data for international operations
Ukraine
Branches () 18
Employees () 386
Assets 107
Net loans 50
Deposits 50
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 49: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/49.jpg)
49 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
PPA adjustments relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations
of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki
Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
4 Gross Loans before Impairments amp Adjustments
Loans and advances to customers before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] amounting to euro56bn at the end of Q118 and to euro58bn at the end of 2017
5 Net Loans
Loans and advances to customers gross of PPA adjustments relating to the acquisition of the seven banks [ie
former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular Bank
Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] amounting to euro56bn at the end of
Q118 and to euro58bn at the end of 2017
6 Net Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
7 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
8 Net Income or Net Revenue Total net income excluding in Q12017 euro21mn of net income from the sale of EFSF bonds to the Central Bank
9 Pre Provision Income (PPI)
Total net income less total operating expenses excluding one-off items In Q12017 euro21mn of net income from the
sale of EFSF bonds to the Central Bank In Q42017 euro16mn of Voluntary Exit Scheme staff costs and in Q12018
euro138mn of Voluntary Exit Scheme staff costs were classified as one-off items The relevant amounts corresponds
to ldquoProfit before provisions impairments and income taxrdquo excluding the one-off items
10 Cost to Income Ratio (CI) Total operating expenses before provisions over total net income excluding one-off items
11 Capital adequacy ratio Total regulatory capital over risk weighted assets
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 50: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/50.jpg)
50 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 phased inCET1 capital ratio phased-in taking into account RWA relief for the divestments of Piraeus Bank Beograd and
anticipated disposals of Piraeus Bank Romania Dunant and NPE portfolios
13 CET1 fully loadedCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Beograd and anticipated
disposals of Piraeus Bank Romania Dunant and NPE portfolios
14 CET-1 -IFRS 9 Jan18 pro-formaRatios as per item 12 above (for phased-in) or item 13 above (for fully loaded) taking into account the impact from
first time adoption of IFRS 9 on 1 January 2018
15 Adjusted total assetsTotal assets excluding assets of discontinued operations amounting to euro23bn and EFSFESM bonds amounting to
euro15 bn in December 2017 and assets of discontinued operations amounting to euro18bn in March 2018
16 Net Interest Margin (NIM) Net interest income over adjusted total assets
17 Net Fee Income over Assets Net fee and commission income over adjusted total assets
18 NPLs - Non Performing Loans
Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments relating to the
acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks in Greece
(Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank
SA]
19 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses gross of PPA adjustments
relating to the acquisition of the seven banks [ie former ATEbank the Greek banking operations of Cypriot Banks
in Greece (Bank of Cyprus Cyprus Popular Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and
Panellinia Bank SA] that are (a) past due over 90 days (b) impaired or those which the debtor is deemed as
unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due
amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d)
subject to contagion from (a) under EBA rules
20 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
21 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 51: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/51.jpg)
51 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
22 NPL Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing Loans
23 NPE Coverage Ratio
Allowances for impairment on loan losses gross of PPA adjustments relating to the acquisition of the seven banks
[ie former ATEbank the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus Cyprus Popular
Bank Hellenic Bank) Millennium Bank SA Geniki Bank SA and Panellinia Bank SA] over Non-Performing
Exposures
24 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
25 NPL FormationChange of the stock of adjusted NPLs adding back write-downs or other adjustments ie loan sales or debt to
equity transactions over loans and advances to customers before allowances for impairment on loan losses
26 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or
debt to equity swaps over loans and advances to customers (before impairments)
27 Net Fee Income (NFI) Net fee and commission income
28 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
29 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
30 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
31 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
32 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
33 Operating Expenses (OpEx) Total operating expenses before provisions
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 52: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/52.jpg)
52 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
34 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
35 Pre Tax Results Profit (loss) before income tax
36 New Loan Generation New loan disbursements that were realized after previous end period
37 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
38 Cross Selling Ratio Total product groups over total number of customers
39 ELATotal Assets ELA Total adjusted Assets
40 NFI (NFampCI) Net fee and commission income
41 GampA Costs Administrative expenses
42 DTC Deferred tax credit
43 PPE Property and equipment plus investment property
44 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 305 mn)
45 FTEs Full time employees
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 53: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/53.jpg)
53
The accompanying presentation has been prepared by Piraeus Bank SA and its subsidiaries and affiliates (the ldquoBankrdquo or ldquoWerdquo) solely for informational purposes For the purposes of this disclaimer the presentationthat follows shall mean and include materials including and together with any oral commentary or presentation and any question-and-answer session By attending a meeting at which the presentation is made orotherwise viewing or accessing the presentation whether live or recorded you will be deemed to have agreed to the following restrictions and acknowledged that you understand the legal and regulatory sanctionsattached to the misuse disclosure or improper circulation of the presentation or any information contained herein The information contained in this presentation is confidential and is solely for the use of theintended recipient
This presentation does not constitute an offer to sell or a solicitation of an offer to buy or a recommendation to buy or invest in any form of security issued by the Bank or its subsidiaries or affiliates nor does itconstitute an offer or commitment to lend syndicate or arrange a financing underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction or to commit capital Thispresentation is not intended to provide a basis for evaluations and does not constitute investment legal accounting regulatory taxation or other advice and does not take into account your objectives or legalaccounting regulatory taxation or financial situation or particular needs No representation warranty or undertaking is being made and no reliance may be placed for any purpose whatsoever on the informationcontained in this presentation in making any investment decision in relation to any form of security issued by the Bank or its subsidiaries or affiliates or for any other transaction You are solely responsible for formingyour own opinions and conclusions on such matters and for making your own independent assessment of the Bank You are solely responsible for seeking independent professional advice in relation to the Bank andyou should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility or liability is accepted by any person for anyof the information or for any action taken by you or any of your officers employees agents or associates on the basis of such information
This presentation does not purport to be comprehensive and no representation warranty or undertaking is made hereby or is to be implied by any person as to the completeness accuracy or fairness of theinformation contained in this presentation The Bank its financial and other advisors and their respective directors officers employees agents and representatives expressly disclaim any and all liability which mayarise from this presentation and any errors contained herein andor omissions therefrom or from any use of this presentation or its contents or otherwise in connection therewith The Bank its financial and otheradvisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of the information in this presentation orin connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that these estimates or expectations are or will prove tobe accurate This presentation speaks only as of the date hereof and neither the Bank nor any other person gives any undertaking or is under any obligation to update any of the information contained in thispresentation including forward-looking statements for events or circumstances that occur subsequent to the date of this presentation
Each recipient acknowledges that neither it nor the Bank intends that the Bank act or be responsible as a fiduciary to such attendee or recipient its management stockholders creditors or any other person Byaccepting and providing this document each attendee or recipient and the Bank respectively expressly disclaims any fiduciary relationship and agrees that each recipient is responsible for making its ownindependent judgment with respect to the Bank and any other matters regarding this document
The Bank has included certain non-IFRS financial measures in this presentation These measurements may not be comparable to those of other companies Reference to these non-IFRS financial measures should beconsidered in addition to IFRS financial measures but should not be considered a substitute for results that are presented in accordance with IFRS
Certain statements contained in this presentation that are not statements of historical fact including without limitation any statements preceded by followed by or including the words ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are not specificallyidentified Examples of forward-looking statements include but are not limited to statements which are not statements of historical fact and may include among other things statements relating to the Bankrsquosstrategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operations liquidity capitalresources and capital expenditures and development of markets and anticipated cost savings and synergies as well as the intention and beliefs of the Bank andor its management or directors concerning theforegoing Forward-looking statements are not guarantees of future performance and involve certain risks uncertainties and assumptions which are difficult to predict and outside of the control of the BankTherefore actual outcomes and results may differ materially from what is expressed in such forward-looking statements We have based these assumptions on information currently available to us and if any one ormore of these assumptions turn out to be incorrect actual market results may differ significantly While we do not know what impact any such differences may have on our business if there are such differencesour future results of operations and financial condition could be materially adversely affected You should not place undue reliance on these forward-looking statements Forward-looking statements speak only asof the date on which such statements are made The Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement to reflect events orcircumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events
DISCLAIMER
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 54: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/54.jpg)
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
54
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
![Page 55: PIRAEUS BANK GROUP PRESENTATION>> Bulgaria | Albania [banking subsidiaries] Q2.18 ~€1.2bn C. Other De-Risking Actions | Under Way YE.18 ~€0.6bn Total ~€3.5bn Piraeus Bank is](https://reader034.vdocument.in/reader034/viewer/2022052018/6030ceec4a88c218bd5e0c7c/html5/thumbnails/55.jpg)
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom
PIRAEUS BANK GROUP HEADQUARTERS
4 Amerikis Str 105 64 Athens Greece T +30 210 333 5026wwwpiraeusbankgroupcom