Παρουσίαση του PowerPoint/media/Com/2019/... · €1.4bn GV, €2.0bn legal claim •...
105
June 2019
Transcript of Παρουσίαση του PowerPoint/media/Com/2019/... · €1.4bn GV, €2.0bn legal claim •...
J u n e 2 0 1 9
2
PIRAEUS BANK DEVELOPMENTS
2018 Capital Enhancement Plan Actions Completed• The planned internal capital generating actions have been concluded
• A Tier 2 issue of €400mn was priced on 19 June (settlement 26 June)
• A series of additional initiatives are being gradually executed
NPE Sales on Track New Loan Demand
Strategic Partnership
End of Restructuring Plan02 03
06
• Piraeus Bank has entered into an agreement with Intrum to form a strategic partnership for the management of NPEs & REOs
• Recovery Banking Unit platform will be transferred to a new servicer company
• 80% of the new servicer company will be held by Intrumand 20% by Piraeus Bank
• The partnership is expected to provide a material boost to the execution of Piraeus’ de-risking strategy
• Greek commitments completed
• International divestments concluded, with
Piraeus Bank Bulgaria sale completed in
Jun.19
• Healthy business demand is emerging across
specific sectors geared to growth and exports
• New target for €4bn new loans in 2019 vs
€3.0bn in 2018; €1.0bn in Q1.19
• Project Nemo regarding shipping loans
completed in Jun.19 (c.€0.5bn GBV)
• Project Iris regarding consumer, small
business loans on track (c.€0.7bn GBV)
04
05
01
Agenda 2023
• Piraeus Bank introduces its new strategic
roadmap up to 2023, aiming at:
CIR | low 40’s
NPE | single digit ratio
RoTE | high single-digit return
Regulatory Capital | ~200bps > requirement
3
CAPITAL TRAJECTORY POST RECENT TRANSACTIONS
15.4%~16.5%
~17%
Mar.19pro-forma
2019 2020 2021 2022 2023
0.7bn
~1.2bn
2018 2019 2020 2021
13.7% 13.7% 13.7%
+85bps
14.6% 15.4%13.6%
+80bps
Jun.18 Sep.18 Dec.18 Mar.19 T2impact
Mar. 19ratio
IntrumImpact
Mar.19ratio
pro-forma
Total Regulatory Capital (%, phased-in)
Total Regulatory Capital (%, fully loaded)
10.4% 10.7% 11.0%
+85bps
11.9%
10.2%
+80bps
12.7%
Jun.18 Sep.18 Dec.18 Mar.19 T2 Issueimpact
Mar.19ratio
Intrumimpact
Mar.19ratio
pro-forma
Total Regulatory Capital (%, phased-in)
Pre Provision Income (€bn)
+€115mn PPI impact from Intrum agreement for the period Q4.19-Q4.21
4
On 19 June 2019, Piraeus Bank (through Piraeus Group Finance PLC) successfully priced a €400mn
10NC5 Tier 2 with an annual coupon of 9.75%
First public Tier 2 issued by a Greek bank since more than a decade | Re-establishment of the Bank’s
presence in the international debt capital market | Greek Tier 2 market re-opening
A 4-day roadshow took place in London between 13 and 18 June | Discussions with more than 60
accounts, with a significant number finally converting into orders
Marketing exercise allowed Piraeus to meet key target accounts and educate investors on its credit
profile and recent developments | Feedback and indication of interest received before books opening
Books opened with IPTs of 10.25% area, on Wednesday 19 June, early am
Rapid book-building progress | Book reached ~€350mn with ~90 accounts, within first 2 hours
Second update at noon, signaling a strongly oversubscribed orderbook | More than 125 investors
Finally at around 1pm, the Issuer set the final yield/coupon at 9.75%, 50bps tighter than IPTs, for a
€400mn transaction | Books significantly oversubscribed with ~€850mn orders from ~135 investors
Well-diversified allocation; wide geographic distribution; international investors at ~87%
Capital strengthening: increase of Piraeus’s total capital ratio by ~85bps
First step in re-building the Bank’s 2.0% Tier 2 bucket
The First Greek Bank to Return to the Public Tier 2 Market Since 2008
PIRAEUS BANK €400MN 10NC5 T2 DEBT
2%1%
16%
13%
44%
7%
3% 13%
1%
Country Split
Austria, Germany
Benelux
France
Greece
UK & Ireland
Other
Switzerland
US
Italy & Spain
Table of Contents1. Financial Results Q1.20192. Strategic Partnership for NPE Management 3. Agenda 2023 Roadmap
01Financial Results Q1.2019I. Executive Summary
II. Financial PerformanceIII. Asset Quality IV. Liquidity
I.Executive Summary
8
01 1.1 Q1.19 GROUP FINANCIAL HIGHLIGHTS
| EXECUTIVE SUMMARY
PPI
€214mn Pre Provision Income vs. €64mn in Q1.18
• NII up 2% yoy
• OpEx down 8% yoy
• PPI/RWAs at 1.8% vs
1.6% in Q1.18
Core Bank data on a recurring basis
Net Result
€19mn after tax profitvs. losses in Q1.18
• Pre tax result €23mn
- Core Bank €138mn
- PLU -€116mn
• Pre tax RoA 0.2%
- Core Bank 1.4%
- PLU <0%
NPEs
-€0.5bnNPEs qoqvs. -€0.6bn in Q1.18
• €3.5bn reduction in
2019, combining
organic and inorganic
actions
Liquidity
88% LDRvs. 97% in Q1.18
• Deposits stable ytd
• LCR at 67% in Q1
• NSFR at 106% in Q1
Capital
15.4%pro-forma phased-in ratio vs. 14.0% in Q4.18
• Quarterly impact
from IFRS9 phasing
• New strategic
initiatives launched
9
01 1.2 GROUP RETURNS TO PROFITABILITY
| EXECUTIVE SUMMARY
Group, €mn Q1.18 Q1.19 yoy FY.18
Net Interest Income 353 360 2% 1,410
Net Fee Income 69 69 0% 291
Other Income 26 15 -40% 157
Net Revenues recurring 448 445 -1% 1,858
Non Recurring Revenues - - - 24
Operating Expenses recurring (251) (231) -8% (1,007)
Non Recurring Expenses (132) - - (154)
Pre Provision Income recurring 196 214 9% 851
Pre Provision Income 64 214 - 721
Loan Impairment (163) (174) 7% (599)
Other Items (1) (17) (17) -5% (43)
Pre Tax Result (115) 23 - 80
Pre Tax Result recurring 17 23 36% 175
Net Result (cont’d & disc’d ops) (83) 19 - (171)
Net Result from Continued Operations (80) 14 - 173
Net Result from Discontinued Operations (3) (3) 5 - (344)
+2%NII yoy
-8%OpEx yoy
1) Other Items line includes associates’ income & other impairments
2) Non Recurring Items for FY.18 include €24mn loss (reported in other income), €48mn extraordinary quality commissionfor past performance in our cooperation for general insurance business with international partner (reported in net feeincome), €154mn VES costs (reported in OpEx),
3) Discontinued operations loss in Q2.18 incorporates a negative amount of €139mn of FX reserves from Romania andSerbia, with no effect in equity capital, as it had affected it in the past
+9% PPI yoy
181bps Cost of Risk
10
01 1.3 BALANCE SHEET TRENDS SIGNAL GRADUAL RESTORATION
| EXECUTIVE SUMMARY
Group, €bn Mar.18 Mar.19 yoy Dec.18 ytd
Cash/Interbank 5,056 2,779 -45% 3,692 -25%
Net Loans* 41,358 38,481 -7% 38,141 1%
Securities 2,883 3,816 32% 3,613 6%
Other assets 14,262 14,178 -1% 16,433 -14%
Total Assets 63,559 59,254 -7% 61,880 -4%
Interbank 8,433 3,235 -62% 4,936 -34%
Deposits 43,151 43,838 2% 44,739 -2%
Debt securities 432 528 22% 528 0%
Other liabilities 3,700 4,092 11% 4,171 -2%
Equity 7,842 7,562 -4% 7,506 1%
Total Liabilities & Equity 63,559 59,254 -7% 61,880 -4%
Stabilisation of loans; growth
in the Core Bank
-€0.5bn NPEsin Q1.19
€4.0bnnew loans in 2019
(€1.0bn in Q1.19)
25%LLRs over gross
loans
* Dec.18 loan figure excludes seasonal agri-loan of €1.6bn
11
01 1.4 GROUP REVENUE & PROFIT MAP | Q1.18 - Q1.19
| EXECUTIVE SUMMARY
17
4165
53
23
Q1.18 Q2.18 Q3.18 Q4.18 Q1.19
Pre-tax profit
196 220 209 226 214
Q1.18 Q2.18 Q3.18 Q4.18 Q1.19
PPI
180 180143 174 191
Q1.18 Q2.18 Q3.18 Q4.18 Q1.19
Total Impairment
448483
451 477445
Q1.18 Q2.18 Q3.18 Q4.18 Q1.19
Net Revenues
251 262 243 250 231
Q1.18 Q2.18 Q3.18 Q4.18 Q1.19
Operating Expenses
163 149 149 137174
Q1.18 Q2.18 Q3.18 Q4.18 Q1.19
Loan Impairment
17 31
-7
36 17
Q1.18 Q2.18 Q3.18 Q4.18 Q1.19
353 352 349 355 360
Q1.18 Q2.18 Q3.18 Q4.18 Q1.19
Net Interest Income
69 70 76 76 69
Q1.18 Q2.18 Q3.18 Q4.18 Q1.19
Net Fee Income
26
61
2645
15
Q1.18 Q2.18 Q3.18 Q4.18 Q1.19
Other Income
Note: amounts in €mn; figures illustrated refer to recurring data
*other impairments include associates’ income
Other Impairment*
12
01 1.5 ASSET QUALITY ON TRACK
| EXECUTIVE SUMMARY
13.1
12.8 collateral
provisions
Group NPE Development | €bn
On track with 2019 NPEreduction target
-€0.5bnQ1 ΝPE quarterly
reduction, all organic
€5.3bnNPE reduction in the last 12 months
€10.8bnNPE reduction from Sep.15 peak
Coverage
96%36.5 35.8
32.927.3
-0.5
26.9
Dec.15 Dec.16 Dec.17 Dec.18 Δ Mar.19
13
01 1.6 NPE SALES IN THE PIPELINE
| EXECUTIVE SUMMARY
Project Amoeba: €1.4bn GBV, €2.0bn legal claim• Secured large SME and corporate loans
• Sale agreed with Bain Capital Credit LP in May
2018 and concluded near end of Oct. 18
Project Arctos: €0.4bn GBV, €2.2bn legal claim• Unsecured personal loans & credit cards
• Sale agreed to consortium led by APS
Investments Capital s.r.o. in Jun. 2018 and
concluded at the end of Oct.18
Project Nemo: c.€0.5bn GBV, equal legal claim• Secured shipping loans
• Sale agreed with Davidson Kempner Capital
Management LP on 10 Jun.19
Project Iris: c.€0.7bn GBV, €1.7bn legal claim• Personal loans & credit cards, small business
loans, leasing exposures
• Virtual Data Room opened in Mar.19
• Non-binding offers received end of Apr.19
2019
completed
completed
agreed
2018
14
01 1.7 IMPROVED LIQUIDITY PPOFILE
| EXECUTIVE SUMMARY
36.139.3 40.9 44.5 43.6 ~44.0
49.5
Dec.14 Dec.15 Dec.16 Dec.17 Dec.18 Mar.19 end ofMay.19
Domestic Deposits | €bn
Wholesale Funding | €bn
• Customer deposits increase 5% yoy in Q1.19
• Deposits decrease qoq due to seasonality (mainly from Greek State balances and impact from agri-related accounts)
14 16
94 3 2
17
12
6
8
2
2
22
Dec.14 Dec.15 Dec.16 Dec.17 Dec.18 Mar.19
Repos
ELA
ECB
• Zero ELA since mid-July 2018
• €4.0bn retained covered bonds received Investment Grade rating in Aug.18, widening our ECB eligible collateral
23
34
21
11
5
market share: 29% 27% 29% 29%29% 30%
3
15
01 1.8 CREDIT ORIGINATION IN GREECE PICKING-UP
| EXECUTIVE SUMMARY
33.9
31.7
26.526.0
2016 2017 2018 Mar.19
27.4
24.9
23.924.5
2016 2017 2018 Mar.19
Performing Exposures | €bn
Non-Performing Exposures | €bn
• Perfoming loan book stabilised as of H2.18
business lending is the driver of this trend
in Q1.19 performing exposures have grown for the first time in many years during the crisis
• NPE portfolio clearly trending downward as per targets set
14.0 13.7 14.5
Dec.17 Dec.18 Mar.19
PE Business loans | €bn PE Individuals loans| €bn
10.9 10.2 10.0
Dec.17 Dec.18 Mar.19
* December loan figures exclude seasonal agri-loan
16
01 1.9 CAPITAL ADEQUACY LEVEL
| EXECUTIVE SUMMARY
€ bn | % Mar.19 Mar.19 Mar.19 Mar.19
CET-1 Capital 6.4 5.0 6.4 5.0
RWAs 47.3 46.0 46.6 45.2
CET-1 ratio 13.5% 10.8% 13.7% 11.0%
CET-1 Ratio
SREP Capital Requirement
• 2019 CET1 requirement 10.5%
• Lower P2R capital requirement for
Piraeus Bank in 2019
• Phasing-in of Conservation Buffer of
62.5bps (fully phased)
• Introduction of O-SII of 25bps (fully
phased by 2022 to 100bps)
• 2018 Capital enhancement plan with
internal capital generating actions
complete (as of Jun.19)
• Fully loaded ratio up by 16bps qoq
% 2018 2019
Pillar 1 CET1 4.50% 4.50%
Pillar 2 Requirement (P2R) 3.75% 3.25%
AT1 1.50% 1.50%
T2 2.00% 2.00%
Total SREP Capital Requirement (TSCR) 11.75% 11.25%
Conservation buffer (CB) 1.875% 2.50%
Other Systemically Important Institutions - 0.25%
Overall Capital Requirement (OCR) 13.625% 14.00%
Note: pro-forma ratios are adjusted for RWA relief from the sale of Bulgarian banking operationsall Q1.19 figures incorporate profit for the period
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
Note: all Q1.19 figures incorporate profit for the period
15.4% and 12.7% pro-forma phased-in and fully loaded total capital ratios
post T2 and Intrum deal
17
01 1.10 RECENT CAPITAL TRAJECTORY
| EXECUTIVE SUMMARY
10.2% 10.4% 10.7% 11.0%
Jun.18 Sep.18 Dec.18 Mar.19
CET-1 Fully loaded
13.6% 13.7% 13.7% 13.7%
Jun.18 Sep.18 Dec.18 Mar.19
CET-1 Phased-In
Mar.19 pro-forma for the sale of Bulgaria
Mar.19 pro-forma for the sale of Bulgaria
10.5% CET1 requirement
10.5% CET1 requirement
14.0%
-35 bps -3bps
+13bps 13.7%
Dec.18 IFRS9 IFRS16 Q1.19impact
Mar.19
• Q1.19 result mitigated the IFRS9 phasing and IFRS16 impact (-40bps in total) for phased-in ratio
• Fully-loaded ratio improving on an on-going basis
CET-1 Phased- in | Quarterly movement (pro-forma level)
Note: all Q1.19 figures incorporate profit for the period
18
01 1.11 2018 ORGANIC CAPITAL ENHANCEMENT PLAN CONCLUDED
| EXECUTIVE SUMMARY
Piraeus Bank has successfully executed its 2018
Capital Strengthening Plan
Albania sale concluded in Feb.19, while Bulgaria
sale concluded in Jun.19
Post actions to increase NPE coverage (2017
clean-up & IFRS9 first time adoption), Piraeus
is focusing on accelerated balance sheet
de-risking to facilitate the execution of its plan,
creating buffers also with the support of organic
capital generation
Action Announcement StatusRWAsRelief
A. Sale of Assets | Completed
>> Avis [operating leasing company] Q1.18 ~€0.2bn
>> Serbia [banking subsidiary] Q2.18 ~€0.3bn
>> Romania [banking subsidiary] Q2.18 ~€0.6bn
>> Amoeba [secured NPL portfolio] Q2.18 ~€0.4bn
>> Arctos [unsecured NPL portfolio] Q2.18 ~€0.1bn
>> Albania [banking subsidiary] Q3.18 ~€0.4bn
>> Bulgaria [banking subsidiary] Q4.18 ~€0.7bn
>> Other de-risking actions Q4.18 ~€0.6bn
RWAs Impact | Sub-total ~€3.3bn
B. Sale of Assets| Signed SPAs
>> Other de-risking actions Q1.19 ~€0.3bn
Total ~€3.6bn
19
011.12 STRATEGIC ACTIONS AND OPTIONS ΒΕΙΝG
EXPLORED FOR FURTHER CAPITAL ENHANCEMENT
Management Actions Under WayEstimated
Capital Improvement
A. Tier II debt issuance
160-200bps(initial guidance for all initiatives)
B. Enhanced organic revenue generation
C. Accelerated cost efficiency actions
D. Balance sheet optimization | RWA management
Management Actions Being Explored
E. Review of high capital-consuming businesses
F. Disposal of operations, non-core subsidiaries and participations
Further to the organic capital
generation budgeted for year
2019, the NPE servicing
agreement signed and the Tier II
debt issued in Jun.19, Piraeus
Bank’s management is working
on a number of additional
initiatives to strengthen capital
position, creating buffers above
supervisory requirements
| EXECUTIVE SUMMARY
NPE servicing agreement(c.80bps)
Issued late Jun.19
(c.85bps)
“Piraeus Core Bank”
20
01 1.13 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION
Piraeus Bank
€bn RWA ROA
Mar.19 28.5 1.4%
Dec.18 28.5 1.6%
Dec.17 28.6 1.1%
Mar.17 28.0 1.1%
“Piraeus Legacy Unit”
€bn RWA ROA
Mar.19 18.9 <0%
Dec.18 19.1 <0%
Dec.17 21.9 <0%
Mar.17 25.2 <0%
Efficiency & Risk-Adjusted Returns Decisive Actions on Legacy Issues
Business model Clean-up
| EXECUTIVE SUMMARY
21
01 1.14 RETAIL BANKING | POSITIVE RESULTS & INCREASING PRODUCTIVITY
Key Figures Q1.19
€mn
NII 147
NFI 37
Other Income 2
Net Revenues 186
Expenses (107)
Pre Provision Income 79
Impairment (26)
Pre Tax Result 53
€bn
Net loans 9.5
RWAs 5.9
Loan Development | €bn
71%
29%
Individuals Small Business
Gross Loans(€9.6bn)
9.8 9.6+ 0.2 +0.5
-0.7
+0.7
New Loans2017
LoansDec.17*
New Loans2018
RepaymentsAmortizations
2018
LoansDec.18
New Loans2019
* adjusted for RBU transfers
NFI* | €mn
37 37
Q1.18 Q1.19
*bank data
119107
Q1.18 Q1.19
-10%
OpEx | €mn
| EXECUTIVE SUMMARY
Q1.19 €0.1bn
Significant increase of new
production in Q1.19 vs Q1.18
• Consumer Loans: 105%
• Mortgages: 80%
• Small Business: 142%
4037
Q1.18 Q1.19
22
01 1.15 CIB | NEW LOAN DEMAND AND HIGHER FEE GENERATION
Key Figures Q1.19
€mn
NII 103
NFI 33
Other Income 1
Net Revenues 138
Expenses (37)
Pre Provision Income 101
Impairment (9)
Pre Tax Result 92
€bn
Net loans 13.0
RWAs 11.655%
8%
10%
27%
Large Corporate Hotels & TourismShipping SMEs & Agri
NFI* | €mn
Gross Loans (€14.6bn)
• Increase of NFI by 14% yoy, with
focus on cross selling
• Leading role in all large
investment projects in Greece
• Significant pipeline of approved
large new deals (>€1bn) under
finalisation for 2019
29 33
Q1.18 Q1.19
+14%
OpEx | €mn
-7%
Loan Development | €bn
*bank data
14.3 14.2+ 1.9 +2.6
-2.7
+3.2
New Loans2017
LoansDec.17*
New Loans2018
RepaymentsAmortizations
2018
LoansDec.18
New Loans2019
* adjusted for RBU transfers
| EXECUTIVE SUMMARY
Q1.19 €0.9bn
Note: Hotels & Tourism segment was launched in Q1.19 and includes loans from Large Corporate & SMEs sectors
23
01 1.16 GROUP DYNAMICS ON TRACK WITH TARGETS
| EXECUTIVE SUMMARY
69
70
124
76
69
Q1.18 Q2.18 Q3.18 Q4.18 FY.18 Q1.19 FY.19e
251
262
243
250
231
Q1.18 Q2.18 Q3.18 Q4.19 FY.18 Q1.19 FY.19e
0.5
0.8
0.7
1.1
1.0
Q1.18 Q2.18 Q3.18 Q4.18 FY.18 Q1.19 FY.19e
353
352
349
355
360
Q1.18 Q2.18 Q3.18 Q4.18 FY.18 Q1.19 FY.19e
Loan Disbursements (€bn)• Resiliency of NII on the back of:
o new loan generation
o lower deposit costs
o ELA elimination
o covered bonds eligibility for ECB funding
• Stable course for NII in 2019e
• NFI contribution on the back of cards business, bancassurance commission, farmers business, money transfers etc.
• Target to reduce cost base in Greece c.€150mn by 2021. Recurring costs for FY.18 & Q1.19 down -8% yoy
• Mid-single digit decrease for OpEx in 2019e
Operating Cost (€mn)Net Fee Income (€mn)
Net Interest Income (€mn)
€1.4bn
€0.34bn
€3.1bn
€1.2bn
~ €4.0bn
~€0.34bn< €1.0bn
~€1.4bn
Extraordinary quality commission €48mn
VES related cost €0.15bn
e: estimate
24
01 1.17 GREEK ECONOMY BACK ON GROWTH TRAJECTORY
| EXECUTIVE SUMMARY
Real GDP Returns to Growth Trajectory (2017: +1.5%, 2018: +1.9%)
Unemployment Rate Improvement Path (2017: 21.5%, 2018: 19.3%)Economic Sentiment Indicator (ESI) & Manufacturing PMI Point to Improving GDP Dynamics
17.215.3
0
5
10
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2001
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2008
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2013
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2016
2017
2018
2019
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Unemployment Rate
2019-2020 outlook
Exports at High Peak Levels
2017 €60bn
10
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Exports of goods and services
Long term average
2018 €65bn
Q2-to-date100.6
Q2-to-date55.4
30
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Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
2.2 2.4
-3.0
-2.0
-1.0
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Q1/
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2019
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QoQ % change YoY % change
2019-2020outlook
25
011.18 GROWTH & REAL ESTATE PRICE RECOVERY WILL
SUPPORT COST OF RISK NORMALISATION
Source: BoG, Provisional data for H2.17, H1.18 and H2.18
Macro Economic Outlook
Piraeus Bank has €23bn of real estate assets as
underlying collateral for loans and €3bn οf own assets.
Almost €11bn relates to NPE portfolio
For every 100bps incremental shift in Real Estate
prices, estimated improvement to our enterprise value
is approximately €50-100mn
Real Estate Prices Gradually Recover
2017a 2018a 2019f 2020f 2021f
Real GDP change 1.5% 1.9% 2.2% 2.4% 2.5%
Unemployment rate 21.5% 19.3% 17.2% 15.3% 13.8%
Inflation 1.1% 0.6% 0.9% 1.3% 1.7%
Non-residential real estate price change 1.6% 5.5%e 4.0% 3.6% 3.6%
Residential real estate price change -1.0% 1.5% 2.6% 3.2% 3.6%
a: actual, e: estimate, f: forecastSource: Piraeus Economic Research, May 2019, baseline scenario
+2.2
+7.4
Η1.
09
Η2.
09
Η1.
10
Η2.
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Η1.
11
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H1
.18
H2
.18
-15
-10
-5
0
5
10House Price Index yoy % Office Price index yoy %
| EXECUTIVE SUMMARY
II.Financial Performance
27
01 1.19 ASSETS & LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
• Loan to Deposit ratio at 88%
3.9
6.6
1.52.2
38.5
1.33.8
1.5
4.1
7.6
43.8
0.51.51.7
Other*
Cash
AssetMix
Total
Securities
Net Loans
Fixed Assets
59.3
amounts in €bn
Total
ECBInterbank Repos
Deposits
Total Equity
Other
59.3
FundingMix
Mar.19 Mar.19
Debt Securities
• Funding mix enhanced on the back of ELAelimination, improved interbank marketaccess and customer deposits restorationprocess
• Interbank repo balances lower qoq on theback of covered bond pool ECB eligibility,partially transferred to Main RefinancingOperations, boosting NII
• Customer deposits comprise 74% of liabilitiesand total equity
• Customer loan comprise 65% of assets
(*) other includes “other assets” (€3.5bn) and “goodwill & intangible assets” (€0.3bn)
Interbank Loans
DTA
Disc’d Ops & Held for Sale
28
01 1.20 GROUP BALANCE SHEET: DE-RISKING AND LIQUIDITY IMPROVEMENT
Group Balance Sheet (€mn)
3
Eurosystem funding stood at €1.7bn in Q1.19, down
€4.4bn yoy. Market repos at €1.5bn in Q1.19
1
2
Q1.19 customer deposit inflows of €0.7bn yoy with a
loan-to-deposit ratio at 88% at the end of Q1.19 (first
quarter impacted by seasonality)
Q1.19 gross loans remained broadly stable qoq.
Delta in gross loans reflects write-offs for clean-up
and deep restructurings (€0.3bn) in Q1.19, while net
deleveraging stood at +€0.4bn
(€mn) Mar.18 Dec.18 Mar.19 qoq yoy
Cash & balances with Central Banks 1,524 2,572 1,529 -41% 0%
Loans & Advances to Banks 3,532 1,120 1,250 12% -65%
Gross Loans 57,702 51,475 51,581 0% -11%
(Loan Loss Reserves) (16,344) (13,333) (13,099) -2% -20%
Securities 2,883 3,613 3,816 6% 32%
- o/w EFSF, ΕSM Bonds 26 36 - - -
Intangibles & Goodwill 305 292 297 2% -3%
Fixed Assets 2,183 2,088 2,185 5% 0%
Deferred Tax Assets 6,587 6,647 6,624 0% 1%
Other Assets 3,388 5,378 3,557 -34% 5%
Assets of Disc. Ops. & Held for Sale 1,799 2,028 1,515 -25% -16%
Total Assets 63,559 61,880 59,254 -4% -7%
Due to Banks 8,846 5,548 4,315 -22% -51%
Deposits 43,151 44,739 43,838 -2% 2%
Debt Securities 432 528 528 0% 22%
Other Liabilities 1,842 1,755 1,741 -1% -6%
Liabilities of Discontinued Ops 1,446 1,804 1,271 -30% -12%
Total Liabilities 55,717 54,373 51,693 -5% -7%
Total Equity 7,842 7,506 7,562 1% -4%
Total Liabilities & Equity 63,559 61,880 59,254 -4% -7%
1
3
2
Note: gross loans of Dec.18 exclude seasonal agri-loan of €1.6bn
| FINANCIAL PERFORMANCE
29
01 1.21 GROUP P&L HIGHLIGHTS: STRONG PERFORMANCE IN COST CONTAINMENT
Group Profit & Loss (€mn)
Q1.19 recurring OpEx decreased by 8% both qoq and yoy,
excluding the extraordinary cost associated with 2018 VES,
while administrative expenses decreased by 37% qoq.
Main driver for this trend has been the Bank’s ‘cost
reduction programme’, as well as other actions aiming at
administrative costs decline
1
2
NII performance for Q1.19 increased at €360mn, 1%
compared to the previous quarter, while yoy
performance was increased by 2%. NFI in Q1.19 declined
9% qoq at €69mn, mainly driven by seasonality;
however, on a yearly basis, it remained unchanged
Q1.19 loan impairment stood at €174mn against €163mn
in Q1.18
3
4
Q4.18 Q1.19 qoq Q1.18 yoy
Net Interest Income 355 360 1% 353 2%
Net Fee Income 76 69 -9% 69 0%
Core Banking Income 431 429 0% 422 2%
Trading Income 36 4 -88% 13 -67%
Other Income 9 11 19% 12 -10%
Total Net Revenues 477 445 -7% 448 -1%
Staff Costs (114) (120) 5% (259) -54%
Staff Costs (recurring) (96) (120) 25% (127) -6%
Administrative Expenses (129) (81) -37% (97) -17%
Depreciation & Other (26) (30) 18% (27) 13%
Total Operating Costs (269) (231) -14% (383) -40%
Total Operating Costs (recurring) (250) (231) -8% (251) -8%
Pre Provision Income 208 214 3% 64 >100%
Pre Provision Income (recurring) 226 214 -6% 196 9%
Result from Associates 28 (10) - (8) 22%
Impairment on Loans (137) (174) 27% (163) 7%
Impairment on Other Assets (64) (7) -89% (8) -13%
Pre Tax Result 34 23 -34% (115) -
Tax 103 (9) - 35 -
Net Results Attrib. to SHs 145 14 - (79) -
Minorities Attrib. to SHs (7) 0 - (1) -
Discontinued Ops Result (4) 5 - (3) -
1
2
4
3
Q1.19 Group PPI increased 3% qoq. Recurring PPI was
down 6%, mainly due to seasonality in net fee income
Note: VES staff costs of €132mn and €18mn were classified as one-off items in Q1.18 and Q4.18 respectively
| FINANCIAL PERFORMANCE
30
01 1.22 NET INTEREST INCOME IMPACTED BY PROVISIONS & DELEVERAGING
1
2
ΝΙΜ at 248bps as interest income in Q1.19 came higher
Improvement from the liability side and funding costs
ELA cost eliminated in mid-July 2018, while positive impact is
derived from covered bonds eligibility for ECB use post their
investment grade rating assignment in late Aug.18
Increase of fixed income portfolio in Eurozone sovereign
assets amounting to €1bn at the end of Mar.19
Q3.18 Q4.18 Q1.19
Net Loans 418 417 421
Fixed Income Securities 13 15 15
Other Assets 26 32 31
Interest Income 457 463 466
Customer Deposits 50 49 48
Due to Banks 12 6 4
Other Liabilities 47 53 54
Interest Expense 108 108 106
Net interest Income 349 355 360
NIM 1 2.43% 2.43% 2.48%
1. on assets excluding discontinued operations
Net Interest Income Decomposition (€mn)
3
4
| FINANCIAL PERFORMANCE
31
011.23 DOMESTIC LOAN PORTFOLIO YIELDS:
FRONT BOOK LOAN PRICING HIGHER VS STOCK
Q1.18 Q2.18 Q3.18 Q4.18 Q1.19
Deposits 0.46% 0.44% 0.42% 0.42% 0.42%
Sight 0.52% 0.51% 0.49% 0.50% 0.50%
Savings 0.07% 0.06% 0.05% 0.05% 0.05%
Time 0.75% 0.73% 0.70% 0.67% 0.69%
avg 3m euribor -0.33% -0.33% -0.32% -0.32% -0.31%
Loans 3.60% 3.52% 3.40% 3.42% 3.33%
Mortgages 2.15% 2.12% 2.03% 2.01% 1.99%
Consumer 6.84% 6.60% 6.46% 6.83% 6.77%
Business 3.90% 3.81% 3.69% 3.70% 3.61%
Actual rates shown above refer to total Greek banking operations, quarterly averages
Customer Rates: Time Deposit Rate Declines Further
Front book rates relate with small disbursements for retail loans, while for business, new production came stronger mainly from both corporate and SME segment
Loan Rates
Q1.19 Total Stock Front Book
Mortgages 2.0% 3.4%
Consumer 6.8% 9.9%
Business 3.6% 4.2%
Total 3.3% 4.5%
Loan Rates: Front Book Rates Steadily Above Legacy Book
Q1.19
Business Loan Rates Total Stock Front Book
Corporate & SME 3.4% 3.9%
SBL 5.3% 6.4%
Total 3.6% 4.2%
| FINANCIAL PERFORMANCE
III.Asset Quality
33
01 1.24 GROUP NPE & NPL RATIOS
| ASSET QUALITY
NPLs (€mn) Mar.19
Business 10,378
Mortgages 4,583
Consumer 2,372
TOTAL 17,334
Group NPL Ratio per Product Category
Group NPL Mix
34% 32% 32%
50%
34% 32% 32%
50%
Total Business Mortgages Consumer
Dec.18
Mar.19
NPEs (€mn) Mar.19
Business 17,874
Mortgages 6,215
Consumer 2,791
TOTAL 26,879
Group NPE Ratio per Product Category
Group NPE Mix
53%57%
43%
58%
52%55%
43%
58%
Total Business Mortgages Consumer
Dec.18
Mar.19
NPE mix 67% 23% 10% NPL mix 60% 26% 14%
Note: gross loans of Dec.18 exclude seasonal agri-loan of €1.6bn
34
01 1.25 CASH COVERAGE PER SEGMENT
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
LLRs (€mn) Mar.19LLR/
Loans
Business 9,273 29%
Mortgages 1,829 13%
Consumer 1,997 42%
TOTAL 13,099 25%
LLRs (€mn) Mar.19LLR/
Loans
Greece 12,603 25%
International 497 46%
TOTAL 13,099 25%
77%
91%
40%
85%
76%
89%
40%
84%
Total Business Mortgages Consumer
Dec.18 Mar.19
Group LLRs at 25% Over Loans
Cumulative provisions at 25% over Group gross loans
Total NPE coverage ratio at 95% for business portfolio including
collateral; business NPEs are approximately 70% of total
49% 52%
29%
72%
49% 52%
29%
72%
Total Business Mortgages Consumer
Dec.18 Mar.19
NPE mix 67% 23% 10% NPL mix 60% 26% 14%
| ASSET QUALITY
35
01 1.26 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note: NPE on-balance sheet data
(€bn) 0 dpd 1-89dpd >90dpd Denounced NPEs
Business 5.6 1.9 2.0 8.4 17.9
Mortgages 0.9 0.8 0.8 3.8 6.2
Consumer 0.2 0.2 0.5 1.8 2.8
TOTAL 6.7 2.8 3.3 14.1 26.9
NPEs per Bucket (Mar.19)
49% 52%
29%
72%65%
76%
34%
78%76%89%
40%
84%
Total Business Mortgages Consumer
NPE NPE>0dpd NPL
Cash Coverage Ratio per Product and Status (Mar.19)
Forborne Loans (Mar.19, €12.3bn)
NPEF 0dpd41%
NPEF 1-30dpd9%
NPEF 31-90dpd11%
NPEF >90dpd12%
PF27%
€5.1bn forborne with 0dpd (€4.1bn business & €1.0bn retail)
Pace of NPE exits from curings accelerated: €0.5bn in Q1.19
This trend is expected to further enhance as per 2021 NPE reduction plan
NPΕ mix 25% 10% 12% 52% 100%
[1] [2] [3] [1+2+3+4][4]
36
01 1.27 NPE MOVEMENT DECOMPOSITION
| ASSET QUALITY
(1.1)(0.8) (0.8) (0.8) (0.9) (0.9) (0.9) (0.9) (0.8) (0.7)
(0.3)(0.7) (0.6)
(0.5)(0.5) (0.2)
(0.5)(0.2)
(0.2) (0.2)
(0.3)
(0.5)
(0.2)(0.1) (0.1)
(0.2)
(1.5)
(0.1) (0.5)
George
Handjinicola
ou
(0.9)
(0.3)
(0.5)
0.7 0.6 0.3 0.4
0.6 0.4 0.2 0.2 0.2 0.3
0.4 0.4
0.4 0.3
0.4 0.4
0.4 0.3 0.2 0.3
Re-defaults
Defaults
Bank data, amounts in €bn
Curings,Collections,Liquidations
Write-offs
NPEs €33.8 €33.3 €32.6
Q4.16 Q1.17 Q2.17
Required effort per quarter on average until
Dec.2021
Q2.19 – Q4.21
Sales
Q3.17
€32.0 €31.4
Q4.17 Q1.18
€30.8 €28.3
Q2.18
clean-up
Note: adjustment in Q2.18 related with the automated application of ‘Unlikely to Pay’ criteria as per ECB’s 2017 NPE Guidance (impact of one-off nature)
0.4
deep restructuring
Q3.18
€27.5
adjustment
€26.4
Q4.18
0.3
0.2
Q1.19
€25.9
37
01 1.28 2021 NPE RATIO IS 23% ON GROSS BASIS OR 14% ON NET BASIS
*Bank data
33.831.4
26.422.9
16.5
11.3
Dec.16 Dec.17 Dec.18 Dec.19 Dec.20 Dec.21
-€6.4bn
-€5.2bn
-€3.5bn
-€2.4bn
23% NPE ratio14% οn net basis
-€5.0bn
6.7 5.2
3.9 2.8
1.6
2017 2018 2019 2020 2021
Restructuring Volumes | €bn
-€12.0bn
| ASSET QUALITY
38
01 1.29 2021 NPE PLAN COMPONENTS
Updated Plan | NPE Stock & Flows Dec.18 - Dec.21 (€bn)
€26.4+€6.1
-€8.6 -€1.2-€4.4
-€6.9
€11.3
NPEDec.18a
Inflows Curings, Collections Liquidations Write-offs Sales NPEDec.21f
Outflows: €21.2
49%
NPE ratio:
33%net loans
gross loans 23%
14%
a: actual; f: forecast
| ASSET QUALITY
€27.5Group
NPE€12.1+€6.2 -€8.8 -€1.2 -€4.6 -€7.0
39
01 1.30 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q1.19
| ASSET QUALITY
-41 -33
-208
47
-187
-740-612
-381-247
13123
6
-120-53
56 31
-63 -9
19
-19
9
-47 -61 -38 -2 -21
18
Q1.
17
Q2.
17
Q3.
17
Q4.
17
Q1.
18
Q2.
18
Q3.
18
Q4.
18
Q1.
19
Q1.
17
Q2.
17
Q3.
17
Q4.
17
Q1.
18
Q2.
18
Q3.
18
Q4.
18
Q1.
19
Q1.
17
Q2.
17
Q3.
17
Q4.
17
Q1.
18
Q2.
18
Q3.
18
Q4.
18
Q1.
19
Greek NPE Formation by Segment |€mn
Business Mortgages Consumer
NPE Greece | €mn
31,026
-722 -488 -1,706
+398 28,508
-584 -213 -65
27,646
-465 -172 -535
26,473
-238 -215
26,020
Mar.18 NPEformation
W/Oclean-up
Sales(NPE
portion)
Adjustment Jun.18 NPEformation
W/Oclean-up
Sales(NPE
portion)
Sep.18 NPEformation
W/Oclean-up
Sales(NPE
portion)
Dec.18 NPEformation
W/Oclean-up
Mar.19
NPE formation was negative inbusiness and mortgage loans in Q1.19,with business NPEs having a better
performance versus the retail segments;consumer NPEs had a marginally positiveformation
40
01 1.31 CASH COVERAGE AUGMENTED BY TANGIBLE COLLATERAL
89%
41%
Cash coverage Collateral coverage
72%22%
Cash coverage Collateral coverage
* pre-haircut tangible collateral (guarantees not included) capped at loan amount
84%20%
Cash coverage Collateral coverage
Mortgages
Business
Consumer
52%
44%
Cash coverage Collateral coverage
Mortgages
Business
Total 130%
Total 108%
Total 104%
Total 95%
Total 100%
Total 94%
Total NPE
coverage at 96%Total NPL
coverage at
121%29%
70%
Cash coverage Collateral coverage
40%
68%
Cash coverage Collateral coverage
Consumer
| ASSET QUALITY
41
01 1.32 LOAN IMPAIRMENTS TAKEN OVER THE PAST 2 YEARS
13.5
39.2
6.6
Gross Loans(parent level)
59.3
Loan Portfolio Supervisory Assessment | €bnLoan Impairments Taken Over The Past 2 Years | €bn
Individually assessed
Collectively assessed
€52.7bn of loan portfolio (as of 30.09.17) has already
been assessed
2.0
+2.0+0.6 4.6
FY.17 IFRS9 FTA FY.18 Total
| ASSET QUALITY
42
01 1.33 LOAN PORTFOLIO DIVERSIFICATION
2.7%
1.9%
3.1%
3.4%
3.9%
3.9%
3.1%
6.2%
6.8%
6.3%
10.4%
10.9%
9.2%
28.3%
Other service activities
Agriculture
Transportation & Storage
Electricity, Gas, Steam
Shipping
Real Estate
Financial & Insurance
Accommodation & Food
Construction
Other
Wholesale & Retail Trade
Manufacturing
Consumer
Mortgages
Loans: KPIs per Segment (Mar.19) Domestic Loan Composition (Mar.19, %)
in €mn | % TOTAL Business Mortgages Consumer
GROUP Loans 51,581 32,477 14,322 4,782
NPL Ratio 33.6% 32.0% 32.0% 49.6%
NPL Coverage 75.6% 89.4% 39.9% 84.2%
NPE Ratio 52.1% 55.0% 43.4% 58.3%
NPE Coverage 48.7% 51.9% 29.4% 71.6%
in €mn | % TOTAL Business Mortgages Consumer
GREECE Loans 50,499 31,555 14,275 4,668
NPL Ratio 32.9% 30.8% 32.0% 49.7%
NPL Coverage 75.9% 91.0% 39.7% 84.0%
NPE Ratio 51.5% 54.2% 43.4% 58.5%
NPE Coverage 48.4% 51.7% 29.3% 71.3%
Retail 37.5%
| ASSET QUALITY
43
01 1.34 AUCTIONS’ PROGRESS (NPE COLLATERAL)
33%
59%
8%
successful
not completed at current attempt
cancelled due to debtor request forrestructuring
28 Feb.18 - mid Jun.19
4.9k auctionsProperty auctions 2014 2015 2016 2017 2018 2019
9 Jan - 21 Jun
FY.19budget
# auctions carried out by Piraeus
124 124 219 396 3,269 1,666 ~3.6k
Auctions o/w Successful
Q2.18 1,021 520
Q3.18 623 154
Q4.18 1,440 429
Q1.19 891 220
Q2.19 to-date 775 177
Piraeus Bank has bid for the 73% of successful auctions in 2019 vs 83% in 2018(projection for c.60% in the 3-year plan)
| ASSET QUALITY
44
01 1.35 PERSONAL BANKRUPTCY LAW REPLACED BY BETTER, STRICTER FRAMEWORK
Retail Loan Balances Under the Protection of L.3869/2010 (old bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured &
Unsecured
in €mn | March 2019 Total Mortgages Consumer Total
Total 2,904 2,509 395 571 3,475
o/w final court decision 1,097 952 145 203 1,300
• in favor of customer 567 497 69 108 674
• in favor of the Bank 531 455 76 95 626
% of court decisions in favor of Bank 48% 48% 53% 47% 48%
48% of the €1.3bn of cases that had been filed and were dealt by the courts, have been rejected [data up to Mar.19]
Rejected cases of €626mn [data up to Mar.18] will be repaid at par from the customer, as the court decided that they have the “ability” to repay the debt in full
This law expired at the end of Feb.19 and was replaced by a new law. The new framework, which will be in force from 30 April to 31 December 2019, is characterized by strict eligibility criteria, process acceleration, reduction of recovery time and includes a state subsidy. Eligibility criteria:
• Objective value <=€250k and <=€175k for SBL• Family income <=170% of reasonable living expenses• Total debt (capital interest expenses)<=€130k for mortgages and <= €100k for SBL• Value of deposits & financial products <=50% of total debt to be settled• Value of immovable property <=200% of the total debt to be settled
| ASSET QUALITY
45
01 1.36 SYSTEMIC PROPOSALS FOR NPE MANAGEMENT
Asset Protection Scheme
• Sponsored by the HFSF and the Ministry of Finance
• Similar to the Italian GACS scheme introduced in 2016
• NPL portfolio Securitisation with Senior notes retained
by the Bank and Mezzanine sold to third party
investors
• Hellenic Republic provides guarantee to Senior notes
subject to conditions
• Favourable risk-weighting of the retained Senior notes
• Facilitates the execution of larger transactions volumes
• Complementary to the Bank of Greece proposal
• Proposal expected to get clearance by DGComp
• Implementation anticipated in 2020
Asset Management Company
• Sponsored by the Bank of Greece
• Transfer of NPE portfolio along with part of the
deferred tax credits (DTCs) to SPV
• SPV funded through Securitisation issue (Senior,
Mezzanine, Subordinated)
• Subordinated notes will be subscribed by the Banks
and the Greek State
• Private investors will absorb Senior and Mezzanine
notes
• Merit of the scheme is that combines NPE deleverage
with improvement in quality of capital
• Implementation anticipated in 2020
| ASSET QUALITY
IV.Liquidity
47
01 1.37 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Deposits
Loans
40%
60%
80%
100%
120%
140%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ELA
ECB
Eurosystem at €8bn in Mar.19 (ELA €0bn, ECB €8bn), -€118bn vs. Jun.15 peak
Eurosystem Funding (€bn)Deposits & Βanknotes in Circulation (€bn)
Banknotes at €28bn in Mar.19, -€22bn vs. Jun.15 peak
€0€8
€130
€42
€33
€152
Net Loans to Deposits Ratio (%)Loans & Deposit Balances (private sector,€bn)
LDR at 92% in Mar.19, -46pp vs. Jun.15 peak
Deposits up €7bn in Mar.19 yoy Loans down €18bn yoy in Mar.19, o/w €9bn write-offs
€162
€133
92%
Source: Bank of Greece; on top of write-offs, the loan market has been impacted by c.€8bn FX fluctuations and other adjustments yoy
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
100
150
200
250
300 Deposits
Currency in Circulation
€28
€150
48
01 1.38 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
36.1
-1.0
+0.4 +0.9+2.9 39.3
-1.3
+0.2+0.9 +1.8 40.9 +0.5 +0.5 +0.8 +1.8 44.5
-0.9
43.6
Dec.15 Δ Q1.16 Δ Q2.16 Δ Q3.16 Δ Q4.16 Dec.16 Δ Q1.17 Δ Q2.17 Δ Q3.17 Δ Q4.17 Dec.17 Δ Q1.18 Δ Q2.18 Δ Q3.18 Δ Q4.18 Dec.18 Δ Q1.19 Mar.19
27% 22%
73% 78%
Mar.19 Mar.19
Business Retail
39% 39%
61% 61%
Mar.19 Mar.19
Time deposits Savings-Sight deposits
Domestic Deposit Mix (%) Deposit Movement by Segment (€bn)
Greek market Piraeus - Greece Greek market Piraeus - Greece
Customer Deposit Movement in Greece (€bn)
PiraeusFY.17delta
FY.18delta
Q1.19delta
Mar.19balance
Q2.19 to date
Mass|Farmers +0.5 +1.1 -0.1 16.8 +0.1
Affluent|Private Banking +0.7 +1.0 - 14.5 +0.2
SB +0.4 -0.1 - 3.3 +0.2
SME +0.1 - -0.1 0.9 +0.1
Corporate +0.1 - -0.1 2.4 +0.2
Govt & Other -0.2 +1.6 -0.6 5.8 -0.4
Total +1.6 +3.6 -0.9 43.6 +0.4
+0.4bn adjusted for seasonality
49
01 1.39 LOW EUROSYSTEM FUNDING UTILISATION
| LIQUIDITY
Dec.14 Dec.15 Dec.16 Dec.17 Dec.18 Mar.19
ECB 14.1 16.0 9.0 4.0 3.2 1.7
EFSF|ESM Bonds 5.7 15.3 7.3 1.5 -
GGBs and T-bills 1.0 - 0.9 1.0 -
L.3723 6.8 - - - -
Covered Bonds - - - - 2.7 1.7
Other 0.6 0.7 0.8 1.5 0.5 -
ELA - 16.7 11.9 5.7 - -
GGBs and T-bills - 0.8 - - - -
L.3723 - 5.7 - - - -
Loans & Other - 10.2 11.9 5.7 - -
Total 14.1 32.7 20.9 9.7 3.2 1.7
Eurosystem Funding (€bn)
14.1 15.1 16.012.4
9.05.5 4.0
1.5 3.2 1.7
22.216.7
14.4
11.9
10.3
5.7
0.3
14.1
20.9
15.8
9.7
1.8 3.21.7
Dec.14 Jun.15 Dec.15 Jun.16 Dec.16 Jun.17 Dec.17 Jun.18 Dec.18 Mar.19
ELA
ECB
32.7
Collateral Used for Eurosystem Funding - Cash Values (€bn)
ELA Utilisation & Buffer
1
2
ELA eliminated on 12.07.2018
ELA collateral buffer estimated at €14bn, based on existing collateral
valuation and haircuts
Interbank Repo Activity
Funding from Non-ECB Eligible Collateral (€bn)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Jun.16 Dec.16 Jun.17 Dec.17 Jun.18 Dec.18 Mar.19
€1.5bn
37.3
26.8
02Strategic Partnership for NPE Management
51
02 2.1 PIRAEUS AND INTRUM JOIN FORCES
• Piraeus Bank and Intrum enter into a strategic partnership for the management of non-performing assets
• Establishment of the market-leading independent NPE servicer in Greece
• The servicer will manage Piraeus’ existing NPEs and REOs, as well as new inflows
• Two servicer companies, one for NPEs and one for REOs, comprising one operating platform
• The platform will also manage non-performing assets of third parties
• Piraeus’ and Intrum’s top management will join the new companies’ Board of Directors
• The NPE servicer company will be licensed and regulated by the Bank of Greece
• The transaction is subject to customary conditions, regulatory approvals and the consent of the HFSF
| STRATEGIC PARTNERSHIP
52
02 2.2 TRANSACTION FACTSHEET
Serviced Perimeter Existing non-performing loans plus forborne / early arrears loans and REOs, as well as any new inflows
€27bn loan exposures and €1bn REOs in the perimeter (est. Q4.2019 figures)
Timeline The two parties aim for transaction closing on 1 October 2019
Board of Directors Comprised of both parties’ executives
Valuation The agreement values the 100% of the platform at €410mn. Intrum has agreed to acquire 80% of the platform
for a purchase price of €328mn
Shareholder Structure 80% of the new servicer company will be held by Intrum and 20% by Piraeus Bank
Contract Duration Initial term of 10 years
Management George Georgakopoulos will assume the role of CEO in the 2 servicer companies
Employees c.1,300 people will be employed in the new servicer companies
Structure The majority of the serviced NPE portfolio to be transferred to and held by a securitization SPV
| STRATEGIC PARTNERSHIP
53
02 2.3 PROCESS AT A GLANCE
Piraeus Bank
ServiceCo
SharesRecovery Banking Unit
Step 1: Transfer of RBU Business to ServiceCo
Piraeus Bank
ServiceCo
Step 2: Sale of ServiceCo, including a long-term SLA
Intrum
Shares in ServiceCo
Consideration
Long-term SLA
80%
20%
Note: diagrams do not explicitly show the creation and sale of the REO servicing company, which follows the same structure
| STRATEGIC PARTNERSHIP
54
02 2.4 BENEFITS OF THE TRANSACTION
1 Leverage with Intrum expertise
2 Enhanced operating efficiency
3
Performance Culture
4
Bank retainsupside potential
5 Re-focus on core banking
Facilitation of sizeable inorganic actions
Independent servicer with the scale and capabilities to service largeportfolios, facilitating future securitizations and systemic solutions
Participation in the enterprise value growth of the servicer companies;Piraeus retains assets & proceeds on its balance sheet
PPI savings (cost relief minus fixed AuM fees) of c.€50mn per annum in2020-2021; overall boost of effectiveness in the management of NPEs
Enhancement of Piraeus’ NPE recovery prospects, facilitating theoutperformance of NPE reduction targets
Management team will re-focus on core banking activities, yieldingimproved results for the Group
| STRATEGIC PARTNERSHIP
55
02 2.5 PIRAEUS’ RBU OVERVIEW
~1,300FTEs
~€27bnservicing perimeter
Formal establishment of the Recovery Banking Unit in
Q4.2013, based on internal workout and restructuring
teams, as well as top talent from the core Bank
Servicing retail and commercial exposures across a
variety of specialised sub-segments
Significant investments in the operating platform,
processes, product suite and governance over time
Active involvement and facilitation of previous and
ongoing NPE transactions by the RBU
The best NPE reduction performance in Greece in 2018
Collections Restructuring Legal actions
Piraeus' Recovery Banking UnitThe most advanced NPE management unit in Greece
RBU Core Activities
| STRATEGIC PARTNERSHIP
56
02 2.6 INTRUM OVERVIEW
Intrum - top quality strategic partner Europe’s leading credit management company
• Holistic service offering, covering the entire credit
management chain
• Local presence in 24 European markets -
market leader in the majority of them
• Strong operational performance and collection results
• Significant transaction and partnership experience
Intrum Key Metrics - Q1 2019 LTM (SEKmn) (EURmn)1
Revenues 14,079 1,357
EBIT Adjusted 4,877 470
Cash EBITDA 10,283 991
Employees >9,000 >9,000
Note: (1) Based on average EUR/SEK exchange rate for the period 1 April 2018 - 31 March 2019 of 10.37
| STRATEGIC PARTNERSHIP
57
02 2.7 PREPARATIONS FRONTLOADED
Launch implementation of the transfer of business to ensure autonomous operational continuity of the servicer companies, by:- Segregating IT systems- Separating premises- Setting up the billing processes and
calculation tools- Managing the transfer of resources- Defining Compliance / GDPR obligations
Stress-test systems and processes of servicer companies
▪ Implementation steps for the transfer of the Piraeus RBU business defined
▪ Operational readiness and set-up of 8 dedicated workstreams
▪ New servicer companies fully up and running
End of May
▪ Piraeus and Intrum have started preparations for the implementation phase of the transaction early in the process
▪ Target is for the new servicer companies to be ready by 01 October 2019
▪ The new NPE servicer company will be licensed by the Bank of Greece
SCOPE
Pre-Signing
End of September
APPROACH
Pre-Signing Post-Signing - Implementation Completion
| STRATEGIC PARTNERSHIP
58
02 2.8 ENVISAGED FINANCIAL IMPACT
10-year periodUp to 20212019
NPV of the 10-year cumulative net income impact c.€100mn, including upfront consideration proceeds
This impact does not include any acceleration in the execution of Piraeus’ NPE reduction strategy
Positive impact on PPI (cost relief minus fixed AuM fees) of c.€115mn cumulatively (Q4.19 to end-2021)
Success fee for the execution of the existing NPE plan expected to be booked in the CoR line
All-inclusive positive impact to capital through to 2021 of c.55-60bps as per existing NPE plan
In a scenario of 10% over-performance vs existing NPE plan, net capital result through to 2021 increases to c.100bps
Capital accretion of c.80bps will arise from the €0.4bn valuation of the NPE servicing platform
Closing expected 1 October 2019; marginal operating P&L impact from Q4.2019
| STRATEGIC PARTNERSHIP
03Launching Agenda 2023 Roadmap
60
03 3.1 PIRAEUS BANK’S POSITIONING IN THE GREEK MARKET
| AGENDA 2023
29%in loans
29%in deposits
28%in branches
34%in ATMs
87%of farmers’ business
5.3mnactive customers, 64% of bankable customers
84 TRI*M retention index with customers
37%in leasing
16%in factoring
16%in brokerage
12%in mutual funds
36%in bancassurance
26%of capacity of RES financed
29%of registered web and mobile users
34%of active mobile users
33% & 43%of web & mobile transactions
61
03 3.2 PIRAEUS BANK’S VISION AND VALUES
Our vision is to be the most trusted Bank in Greece, creating value for our shareholders, clients and employees
Based on the principles of transparency, accountability and meritocracy, we aim to be a pillar of stability for the Greek economy, to fuel growth and to promote innovation
Our corporate values are to:
Create value in all we do
Enthuse our customers
Challenge the frontiers
Build relationships
of trust
| AGENDA 2023
62
03 3.3 NEW BOARD OF DIRECTORS
Name & Surname Position AppointmentBusiness & Banking
Experience
George Handjinicolaou Non-Executive | Chair November 2016 36 years
Karel De Boeck Non-Executive, Independent / Vice Chairman June 2016 43 years
Christos Megalou Executive March 2017 35 years
George Georgakopoulos Executive December 2017 24 years
Venetia Kontogouris Non-Executive, Independent June 2017 37 years
Arne Berggren Non-Executive, Independent June 2016 34 years
Enrico Tommaso Cucchiani Non-Executive, Independent November 2016 23 years
David Hexter Non-Executive, Independent January 2016 49 years
Solomon Berahas Non-Executive November 2016 36 years
Alexander Blades Non-Executive January 2016 25 years
Per Anders FasthNon-Executive,
HFSF Representative under L.3864/2010November 2017 30 years
Note: Information as of June 2019
| AGENDA 2023
63
03 3.4 NEW EXECUTIVE COMMITTEE
Name & Surname Position AppointmentBusiness & Banking
Experience
Christos Megalou Chief Executive Officer (CEO) April 2017 35 years
George Georgakopoulos Piraeus Legacy Unit September 2017 24 years
Konstantinos Paschalis Chief Financial Officer (CFO) July 2016 34 years
Thymios Kyriakopoulos Chief Risk Officer (CRO) June 2017 22 years
Dimitris Mavroyannis Chief Operating Officer (COO) January 2019 23 years
Vasilis Koutentakis Retail Banking & Distribution Networks September 2017 29 years
Eleni Vrettou Corporate & Investment Banking April 2019 18 years
Tom Arvanitis Group Treasurer May 2016 27 years
George Kormas REO & Piraeus Real Estate SA June 2017 20 years
Anastasia Makarigaki Group Human Resources September 2018 29 years
Manos Bardis Chief Credit Officer (CCO) March 2018 30 years
Note: Information as of June 2019
| AGENDA 2023
64
Fundamental turnaround,de-risking intensified, profitability, liquidity strengthening, efficiency, risk-centered culture established
Re-focus on the core bank, based on re-sizing, right pricing, agile service offering and customer experience
Business
Transformation, lean business, response to clients’ needs, improved business performance
Digital
Stop legacy costs, right use of capital, focused delivery of capital enhancement plan actions
Capital
NPE decrease
€8.5bn
new loans
€5.7bn
BA
C D
03 3.5 2017-2018: PROGRESS SO FAR
Agenda 2020
| AGENDA 2023
65
Progress in all fronts of the Bank’s operational performance. NII impacted from IFRS9 transition, stabilization post early 2018
Note: RoA at pre-tax level
LDR117%
85%Dec.2018
Dec.2016
ELA€11.9bn
0
NPE€35.8bn
€27.3bn660
55314,492
12,097
Branches
NIM275bps
241 bps
NFI49bps
50bps
OPEX€1.2bn
€1.0bn
CoR222bps
157bps
RoAlosses
0.3%
03 3.6 TARGETS MET
FY.2018
FY.2016
Headcount
| AGENDA 2023
66
03 3.7 LAUNCHING THE NEW ‘AGENDA 2023’ ROADMAP
2015 2016 2017 2018 2019 2020 2021 2022 2023
Restructuring Plan
conluded
Budget2019
ontrack
Agenda 2020
ontrack
NPE Strategy 2021
ontrack
Agenda 2023 Roadmap
NEW
New CEO
New Chairman
| AGENDA 2023
67
03 3.8 AGENDA 2023: KEY PILLARS
. bb. Satisfying Stakeholders becoming the top priority for the Bank
Value Creation by the Leading Bank in Greece
a. Strategic Targets paving the path to increasing profitability
Efficiency & Simplification
De-risking of Legacy Assets
Growth of Core Assets
c. Sustainable Solutions producing sustainable returns for all stakeholders
| AGENDA 2023
03Agenda 2023 | a. Strategic Targets
69
03 3.9 2023 ROADMAP: RESTORATION OF FUNDAMENTALS IN THE BASELINE SCENARIO
2018
54%
51%
losses
~200bps above the expected requirement
high single-digit return
single-digit ratio
low 40’s
RoTΕ
NPE
Regulatory Capital
Cost to income
14.0%
| AGENDA 2023
70
03 3.10 DRIVERS OF SUSTAINABLE ROA IMPROVEMENT
+0.1%
+0.5%+0.2%
Pre-tax RoAFY.2018a
Revenue Increase Cost Reduction Asset Quality Pre-tax RoAFY.2023f
Pre- tax RoA
Growth anddevelopment of
the business
Efficiencyincrease andsimplification
De-risking andcost of risk
normalization
~1.0%0.3%
| AGENDA 2023
a: actual, f: forecast
3…
8.0
51.3
5.5
14.8
25.8
14.0
7.3
13.0
36.0
6.4
11.4
71
03 3.11 2023 ROADMAP: DE-RISKING THE BALANCE SHEET
4.2
7.5
44.7
5.5
Other assets
Cash, Securities, Interbank
Asset Mix
Net NPEs
Net PEs
100%
Interbank & Debt Securities
Deposits
Equity
Other liabilities
2018 2023
100%
Liability Mix
100% 100%
12%20%
23%5%
42% 60%
24% 15%
9% 10%
72%75%
12%12%
7% 3%
2018 2023
| AGENDA 2023
72
03 3.12 MACROECONOMIC RECOVERY AND OPPORTUNITIES
19.3
17.2
15.3
13.8
12.611.7
2018a 2019f 2020f 2021f 2022f 2023f
10.0
12.0
14.0
16.0
18.0
20.0
1.92.2
2.4 2.5 2.52.3
2018a 2019f 2020f 2021f 2022f 2023f
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Real GDP % | May 2019 Baseline Scenario
Unemployment Rate % | May 2019 Baseline Scenario
1
2
3
4
5
From a consumption-based to an export-based economyIncreased appetite for new financing from sectors such as hospitality, pharmaceuticals, farming, food-processing
Greece moving up the value added chainFinancing infrastructure upgrades and investments in value-adding sectors, i.e. healthcare, energy
Consolidation process underwayConsolidation creates sectoral leaders in businesses with less stellar prospects, e.g. retail trade, fish farming
Liberalization of sectors and privatizationsPrivatized assets and natural resources development will require substantial funding
Real-estate market recoveryOpportunities arising in the real estate market to have a widespread impact in a) borrowers behavior, b) mortgage loan demand, c) Foreign Direct Investments, d) construction activity
| AGENDA 2023
a: actual, f: forecast
03Agenda 2023 | b. Sustainable Solutions
74
03 3.13 CAPITAL STRENGTHENING
~16.5%~17%
14.0%
2018 2021 2023
CAPITAL ENHANCEMENT
PLAN
Capital | Phased-in
RWA density
Texas Ratio
2018
79%
88%Trajectory on organic capital generation
through profit growth and RWA optimization
Agenda 2023
Review of high capital-consuming businesses
Debt Issuance planin line with medium-term strategy for MREL compliance
2023
~65%
~35%
Notes: Texas ratio = NPLs / (Cumulative Provisions + Regulatory Capital)CoCo of €2,040mn, part of CET-1 capital, is assumed to be serviced throughout the period
| AGENDA 2023
75
03 3.14 DE-RISKING: NPE CLEAN-UP ACCELERATION
12
<6
27
2018 2021 2023
NPE PLAN 2021
Gross NPE Ratio
Net NPE Ratio
2018
53%
27%
Single-digit NPE ratio in 2023Through a mix of organic and inorganic actions
Agenda 2023
More outflows and less inflowsSupported by c.€15bn restructuring volumes in 2017-2019
Scheduled inorganic actions Securitizations and NPE disposals
2023
~9%
~5%
Group NPE Balances (€bn)
| AGENDA 2023
76
03 3.15 GROWTH OF BUSINESS: FOCUS ON SME, SB & RETAIL SEGMENT
~400 ~450339
2018 2021 2023
Net Fee Income (€mn)
AGENDA 2020
Fees/Assets
2018
0.5%
Strong new loan production - Focus on financing healthy borrowers, following strict credit criteria- Remain the leading SME bank in Greece along with increased
generation of retail loans under a risk-adjusted approach- Transition to a more capital-light business approach
Agenda 2023
Leading position | 5.3mn customers in Greece- Client-first mentality; enhancement of product offering- Focus on cross selling opportunities - Target segments with upside, e.g. affluent and upper mass or
product lines e.g. trade finance, acquiring, factoring, agri-business
2023
~0.7%
CIB
SME
Retail
SB & Farmers
| AGENDA 2023
77
03 3.16 GROWTH OF BUSINESS: DIGITAL BANKING
Digital Business Drivers
Efficiency through migration to digital
Digital differentiation and engagement
Online sales
Active online users 1.5mn >2mn
Digital transactions 84% >90%
Mobile users
0.7mn >1.8mn
Mobile user logins
0.6 per day
>1 per day
• Most engaged mobile users in the market
• Leading personal financial management solution integrated in web and mobile banking experience
• Only e-branch solution in the market with real results (1% of network brings in 3% of new deposits)
• Migrate products and sales online (Only bank in market selling e-loans)
• Develop new digital services for additional revenue streams from retail and business customer base
Market leaders in digital
World class digital results
% consumer loans sold
online11% >30%
• People-centric channels becoming predominantly sales channels
• Majority of transactions (86%) already transferred to fully automated channels (online or ATM)
• Program to migrate servicing to online channels too
2018
| AGENDA 2023
78
03 3.17 EFFICIENCY TO GAIN FURTHER TRACTION
HORIZON 2021
1,007
-150
850
-50
2018 Opex Savings 2021 Galvin
Evolution of Operational Costs (€bn)
Strategic Partnership
for NPE Management
OpEx/Assets
Assets/FTEs
2018
1.7%
€5mn
Project Horizon commenced in 2017 to reduce the cost
base in Greece by >€200mn during period 2018-2021
Agenda 2023
Optimization and automation of internal processes
to improve efficiency, effectiveness and time to market
2023
~1.2%
~€8mn
Development of pre-acceptance processes and products (i.e. e-loan)
| AGENDA 2023
03Agenda 2023 | c. Satisfying Stakeholders
80
03 3.18 ADD VALUE TO ALL STAKEHOLDERS
People
Communities
• Disseminate equal opportunities and diversity in the workplace
• Promote career and personal development
• Training hours per person from 38 to >45
• Pioneering health and well-being practices
for employees and their families
• TRI*M Index | Top tier among European banks
for customer experience
• Active Customers | > 5.5mn
• Digital Customers | > 2.0mn
• Enhance volunteer activities
• Promote culture, environmental actions and sustainable development
• Promote Project Future, a project that offers young people access to the job market
• Support young generation by promoting Youth Entrepreneurship
• CIR | low 40%’s
• NPE | single digit ratio
• RoTE | high single-digit return
• Regulatory Capital | ~200bps above expected
requirement
Customers
Shareholders
| AGENDA 2023
81
03 3.19 ESG STRATEGY | FOCUS ON SUSTAINABILITY
• Principles for Responsible Banking Initiative | On 26.11.18, UNEP FI (UN Environment Finance Initiative) & 28
banks from around the world launched the Principles for Responsible Banking, with Piraeus Bank being the
only Greek Bank actively participating in developing the set of Principles
Sustainable Development Goals
Sustainability for Piraeus Bank
• Creating income within a new business model• Transformative and forward-looking• Integrated into the core purpose of business
Piraeus Bank’s ESG priorities
• Actively participating in global initiatives• Making sustainability a reality• Co-shaping global sustainability strategies
| AGENDA 2023
04.Appendix
| APPENDIX
04 4.1 GROUP RESULTS | QUARTERLY EVOLUTION
(€mn) Q1.17 Q2.17 Q3.17 Q4.17 Q1.18 Q2.18 Q3.18 Q4.18 Q1.19
Net Interest Income 420 414 415 390 353 352 349 355 360
Net Fee Income 70 72 112 76 69 70 124 76 69
Net Fee Income (recurring) 70 72 77 76 69 70 76 76 69
Trading & Other Income 27 69 24 -1 26 36 26 45 15
Total Net Revenues 517 556 551 464 448 458 499 477 445
Total Net Revenues (recurring) 497 510 516 454 448 483 451 477 445
Staff Costs (132) (133) (128) (153) (259) (125) (117) (114) (120)
Staff Costs (recurring) (132) (133) (128) (137) (127) (125) (114) (96) (120)
Administrative Expenses (107) (102) (108) (145) (97) (113) (103) (129) (81)
Depreciation & Other (24) (23) (24) (28) (27) (25) (26) (26) (30)
Total Operating Costs (263) (258) (260) (325) (383) (262) (246) (269) (231)
Total Operating Costs (recurring) (263) (258) (260) (309) (251) (262) (243) (250) (231)
Pre Provision Income 255 298 291 139 64 196 253 208 214
Pre Provision Income (recurring) 234 252 256 144 196 220 209 226 214
Result from Associates (7) (19) 4 (8) (8) (16) 11 28 (10)
Impairment on Loans (258) (264) (310) (1,189) (163) (149) (149) (137) (174)
Impairment on Other Assets (9) (16) (7) (118) (8) 20 (4) (64) (7)
Pre Tax Result (20) (2) (21) (1,176) (115) 51 110 34 23
Tax 13 10 2 1,181 35 (29) (17) 103 (9)
Net Result Attributable to SHs (7) 10 (18) 6 (79) 24 94 145 14
Minorities 0 (1) (1) (2) (1) (2) (1) (7) 0
Discontinued Operations Result (1) (77) 5 (119) (3) (310) (27) (4) 5
83
84
04 4.2 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT KPIs | Q1.19
PIRAEUS GROUP
360
69
445
(231)
214
(181)
23
2.5%
0.5%
52%
1.9%
0.2%
79%
PLU
87
3
92
(53)
40
(151)
(116)
1.9%
0.1%
57%
3.8%
<0%
92%
PIRAEUS CORE BANK
273
66
352
(178)
174
(30)
138
2.8%
0.7%
51%
0.6%
1.4%
72%
A. P&L (€mn)
1 NII
2 NFI
3 Net revenues
4 Operating costs
5 PPI
6 Total impairments
7 Pre-tax income
B. Ratios
8 NIM over assets
9 NFI over assets
10 Cost-to-income
11 Cost of risk
12 Pre-tax RoA
13 RWA density
*PLU includes RBU, international operations, REO, holdings, discontinued operations and non-core Greek assets
| APPENDIX
85
04 4.3 RETURN TO NORMALISATION ALLOWS FOCUS ON CORE ACTIVITIES
CORE BANK
Q1.2019 | €mn Retail CIB Markets Corp.Center CORE TOTAL PLU GROUP
NII 147 103 21 1 273 87 360
NFI 37 33 1 (5) 66 3 69
Other Income 2 1 3 7 13 3 15
Net Revenues 186 138 26 3 352 92 445
OpEx (107) (37) (5) (29) (178) (53) (231)
PPI 79 101 21 (26) 174 40 214
PBT 53 92 29 (36) 138 (116) 23
NIM over assets 5.8% 3.2% 1.6% 0.1% 2.8% 1.9% 2.5%
NFI over assets 1.5% 1.0% 0.1% <0% 0.7% 0.1% 0.5%
Cost of Risk 0.3% 0.3% n.m. 1.9% 0.6% 3.8% 1.9%
PPI over RWA 5.4% 3.5% 4.2% <0% 2.4% 0.9% 1.8%
Pre-tax RoA 2.1% 2.8% 2.2% <0% 1.4% <0% 0.2%
RWA density 58% 89% 36% 82% 72% 92% 79%
*PLU includes RBU, international operations, REOs, holdings, discontinued operations and non-core Greek assetsn.m.: non-meaningful
| APPENDIX
86
01 4.4 SEGMENTAL ANALYSIS Q1.19 | REVENUE & PROFIT MAP
| APPENDIX
amounts in €mn
Net interestincome
Non-interest income
Pre provision income
Pre tax result
fees
other
Group
360 84
214 23
Core Bank
273 79
174 138
PLU
87 5
40 (115)
Retail
147 38
79 53
CIB
103 34
101 92
Piraeus Financial Markets
21 5
20 29
Corporate Center
1 2
(26) (36)
37
1
33
1
2
3
(5)
7
87
04 4.5 LOAN & DEPOSIT PORTFOLIOS
Gross Loans Evolution (€mn)
Dec.16 Dec.17 Mar.18 Dec.18 Mar.19 qoq yoy
Group 64,947 58,627 57,702 51,475 51,581 0% -11%
Business 42,511 37,962 37,276 32,144 32,477 1% -13%
Mortgages 16,162 15,183 15,007 14,523 14,322 -1% -5%
Consumer 6,274 5,482 5,419 4,808 4,782 -1% -12%
Greece 61,296 56,597 55,680 50,382 50,499 0% -9%
Business 39,792 36,317 35,655 31,215 31,555 -1% -11%
Mortgages 15,707 14,973 14,797 14,474 14,275 -1% -4%
Consumer 5,797 5,307 5,229 4,693 4,668 -1% -11%
Int’l 3,650 2,030 2,022 1,093 1,082 -1% -46%
Business 2,719 1,645 1,621 928 922 -1% -43%
Mortgages 455 210 210 49 46 -5% -78%
Consumer 476 175 190 116 114 -1% -40%
Deposits Evolution (€mn)
Dec.16 Dec.17 Mar.18 Dec.18 Mar.19 qoq yoy
Group 42,365 42,715 43,151 44,739 43,838 -2% 2%
Savings 14,995 15,134 14,945 15,323 15,137 -1% 1%
Sight 11,190 11,682 10,982 12,013 11,504 -4% 5%
Time 16,179 15,900 17,225 17,402 17,197 -1% 0%
Greece 39,322 40,889 41,404 44,536 43,634 -2% 5%
Savings 14,613 14,825 14,624 15,309 15,123 -1% 3%
Sight 10,536 11,125 10,473 11,927 11,421 -4% 9%
Time 14,172 14,938 16,308 17,300 17,091 -1% 5%
Int’l 3,043 1,826 1,747 203 204 1% -88%
Savings 382 309 321 14 14 0% -96%
Sight 654 556 509 86 83 -4% -84%
Time 2,007 961 917 102 107 5% -88%
Notes: loan balances exclude seasonal agri-loan of €1.7bn for Dec.16 & €1.6 for Dec.17 and Dec.18; Serbian operations excluded from Jun.17 onwards, Romanian operations from Dec.17 onwardsBulgarian and Albanian operations from Jun.18 onwards
| APPENDIX
88
04 4.6 IFRS9 SEGMENT & STAGE ANALYSIS | GROUP
impact
€1,621mn
Gross Loans (€bn)
Dec.171 Mar.18 Jun.18 Sep.18 Dec.181 Mar.19 Δyoy
Stage 1 19.1 18.9 18.6 18.4 17.6 18.2 -0.7
Stage 2 6.9 7.0 5.9 5.9 5.9 5.9 -1.1
Stage 3 32.3 31.8 29.3 28.5 28.0 27.5 -4.3
Total 58.3 57.7 53.7 52.8 51.5 51.6 -6.1
Coverage (%)Mar.19
Mortgages Consumer Business Total
Stage 1 0% 3% 1% 1%
Stage 2 3% 12% 6% 6%
Stage 3 27% 64% 50% 46%
Total 13% 42% 29% 25%
47% 49%
Dec.17 Dec.18
NPE Coverage Evolution (%)
(1) excluding seasonal loan to farmers (€1.6bn). Loans for all periods exclude balances accounted for at FVT P&L
IAS 39 IFRS 9
| APPENDIX
04 4.7 BALANCE SHEET EVOLUTION BY ITEM: PEs NET DELEVERAGING CONTAINED
Assets (€bn)
Loan Loss Reserves (€bn) Deposits (€bn)
15.5 +1.7
-1.6 -2.4
+0.6
-0.413.3
Dec.17 IFRS9 FTA[loans]
Sales Write-offs Costof risk
Other Dec.18
42.7
-1.6
+1.8 +1.8 44.7
Dec.17 Disc Operations HouseholdDeposits
Business & GovtDeposits
Dec.18
67.4
-2.2 -0.8 -1.4 -1.9
+0.8 61.9
Dec.17 Disc Ops Sales EFSFBonds
IFRS9FTA
FYNet delta
Dec.18
+€3.6bn
Gross Loans (€bn)
60.3
-1.0 -2.4 -2.4 -0.6 -0.7
53.1
Dec.17 DiscOperations
Sales Write-offs NPEdelta
PEdelta
Dec.18
2017: -€1.4bn
+3.3 new loans-4.0 repayments
89 | APPENDIX
| APPENDIX
04 4.8 BOARD OF DIRECTORS
90
Chairman
Chair of the Audit Committee, Member of the: Risk Management Committee, Board Members’Nominations Committee, Remuneration Committee, Strategy Committee, Ethics Committee• Chair and Board member of banks, commercial institutions (EBRD, Citi, Supervisory Board member
Zachodny Bank)
Chair of the Remuneration Committee, Chair of the Nominations Committee,Member of the Strategy Committee, of the Risk Management Committee and of the Ethics Committee• Former Senior Advisor to IMF, banks and organizations
Arne Berggren
David Hexter
Non Executive ChairmanChair of the Strategy Committee, Chair of the Ethics Committee, Chairman of Piraeus Cultural Foundation• Chairman of ATHEX and HBA. Former Deputy CEO of ISDA where he served since 2011, Senior
Management positions in Dresdner Kleinwort Benson, BofAML and UBS in London & NY
George Handjinicolaou
Member of the: Audit Committee, Board Members’ Nominations Committee, RemunerationCommittee, Strategy Committee, Ethics Committee• Former CEO of Intesa San Paolo, CEO of Think Global Investments, Management Board of Allianz
Enrico Tommaso Cucchiani
Managing Director (CEO)Chair of the Executive Committee, Member of the Ethics Committee Former CEO of Eurobank Ergasias SA, Vice-Chairman of Southern Europe of Credit Suisse Investment Banking, Distinguished Fellow (Global Federation of Competitiveness Councils)
Christos Megalou
Executive Members
Executive General Manager, Piraeus Legacy Unit Member of the Executive Committee, Member of the Ethics Committee Former CEO of Eurobank Romania (BancPost), former CEO of 4Finance
George GeorgakopoulosIndependent Non Executive Members
Vice ChairmanChair of the Risk Management Committee, Vice-Chairman of the Ethics Committee, Member of the Audit Committee, Strategy CommitteeFormer CEO at Dexia and Fortis Group, Former Vice Chair of ABN AMRO Holdings (UK) Ltd
Karel De Boeck
Member of the Ethics Committee • Founder and Managing Director of Venkon Group, LLC• Family operated business with PE investments, VC investment in hi-tech• Real Estate portfolio consisting of commercial and residential development
Venetia Kontogouris
Non Executive Members
Member of the: Risk Management Committee, Audit Committee, Board Members’ Nomination Committee, Remuneration Committee, Ethics CommitteeCEO of Tiresias SA, Group Risk Director at Eurobank
Solomon Berahas
Member of the: Risk Management Committee, Remuneration Committee, Board Members’ Nomination Committee, Strategy Committee, Ethics CommitteePartner at Paulson & Co. Inc
Alexander Blades
HFSF Representative, Member of the: Risk Management Committee, Audit Committee, Board Members’ Nomination Committee, Remuneration Committee, Strategy Committee, Ethics Committee• Former CEO of SBAB Bank and Senior Executive of SEB• Non Executive Board member of Scandinavian banks / financial institutions
Per Anders Fasth
| APPENDIX
04 4.9 ORGANIZATIONAL STRUCTURE
91
BoD Chairman G.HandjinicolaouBoD & BoD Committees
Retail Banking & Distribution Networks
V.Koutentakis
CEO
C.MegalouCEO’S OFFICE
G.Christopoulos
G.Κormas
S.Lorentziadis
G.Karamousalis
C.Berbati
Corporate & Investment
BankingE.Vrettou
Piraeus Financial Markets
A.Arvanitis
Risk ManagementE.Kyriakopoulos
Internal AuditP.Tsoukatos
Group CreditE.Bardis
Legal ServicesG.Liakopoulos
Compliance Α.ΚassapakiRecovery Banking
UnitG.Georgakopoulos
Divestments
Piraeus Financial Management &
Control Κ.Paschalis
Supervisory &Regulatory Affairs
P.Skoularikis
Piraeus Legacy Unit
G.Georgakopoulos
REOG.Kormas
Piraeus Support/
OperationsD.Mavrogiannis
BoD Risk Committee
BoD Audit
Committee
Piraeus Bank Core Piraeus Risk & Controls
Corporate GovernanceG.Liakopoulos
Group Human Resources
A.Makarigaki
PLU Strategy T.Gnardellis
Group Procurement
92
04 4.10 SHAREHOLDER STRUCTURE
HFSF
26%
Institutional Investors & Legal
Entities
66%
Individuals
8%
Piraeus Shareholder Structure (Jun.19)
Shareholder structure of Piraeus Bank presents great diversity; total number of common shareholders 28.5k
The Hellenic Financial Stability Fund holds 26% of outstanding common shares
The remaining 74% is held by the private sector; 66% by legal entities and 8% individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 322 mn
HFSF 115 mn
Total 437 mn
| APPENDIX
93
04 4.11 PIRAEUS BANK LEADING POSITION IN GREECE | Q1.19
| APPENDIX
8,165
8,941
9,089
12,067
21%
21%
24%
29%
19%
22%
27%
29%
Gross Loans – Greece (%) Customer Deposits – Greece (%) Greek Branch Network (#)
Source: Bank of Greece for Greek market data and financial information for banks, as of Mar.19
Headcount – Greece (#)
350
426
438
548
94
04 4.12 FULFILLMENT OF RESTRUCTURING PLAN COMMITMENTS
Status
# of branches in Greece
# of employees in Greece
Target max 650 max 13,200
Total costs in Greece
max €1.1 bn
Cost of deposits in Greece
Decrease according to Bank’s projections in the Restructuring Plan
Loans / deposits
max 115% for Greek banking activities
Annual growth rate of gross loans
Not higher than the market
Domestic cost rationalization Domestic operations
Support to foreign subsidiaries
Deleverage of non-Greek assets
Equity or subordinated capital under specific limitations
Total size of foreign assets eliminated. Alternatively, run-off of business >80% of 2012 Balance Sheet by year-end 2018
Sale of insurance activities
ATE Insurance & ATE Insurance Romania
Sale of securities
Listed │Unlisted securities
International Divestments
Status
Target
(553 in Q4.18) (11.7k in Q4.18) (<€1.0bn)* (85% in Q4.18)
* FY.18 excluding VES related costs and DGS costs
| APPENDIX
95
04 4.13 CAPITAL CONTROLS UPDATE: FURTHER RELAXATION AS OF OCT.18
Cash Withdrawal Limit
• No limit for withdrawals performed domestically
(applicable from 01.10.2018)
• €5,000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Funds• Allowed
New Account Opening • Allowed with no exceptions (applicable from 01.03.2018)Greek Capital Market
Instruments• Allowed
Additional Account
Beneficiary• Allowed (applicable from 01.03.2018)
Foreign Investments
Liquidation• Proceeds can be re-invested
Transfers from abroad • 100% of incoming funds can be re-transferred abroadChange of Custodian
Bank• Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
• Private individuals can transfer up to €4,000 per 2 months
(applicable from 01.07.2018)Trade Related Payments
• <€1m approval at bank level
(applicable from 18.10.18)
• Weekly limit for bank-level committee at €250mn
• >€1m approval by the Banking Transactions
Approval Committee (applicable from 18.10.18)
Time Deposit Break • Allowed Early Loan Repayment • Allowed
27 ministerial decisions since imposition of Capital Controls, indicating a gradual relaxation of the relative framework
| APPENDIX
96
04 4.14 CONTINGENT CONVERTIBLE BONDS
Term & Ranking
Payment of interest
Perpetual
Pari passu with common equity, junior to all claims of all creditors (including subordinated) at special liquidation of issuer
Annual
Fully discretionary & Paid in cash or shares
Coupon is tax deductible, impacting directly equity position as dividend
No dividend shall be paid on the issuer’s common stock if issuer has decided not to pay the previous coupon payment in full
Coupon Initial 7 years 8% per annum (initial interest rate).
Post 7 years, interest rate calculated as prevailing 7y Mid-swap rate + (8% less 7y Mid-swap rate at issuance: 7.543 per cent, p.a.)
Conversion events
The securities shall automatically convert into ordinary shares if:
At any time the CET1 ratio, calculated on a consolidated basis or a solo basis, falls below 7%
2 annual coupons are missed (in whole or in part, and do not need to be consecutive)
Optional to the holder at 7th anniversary of issuance
Conversion consideration The number of common shares issued on conversion is determined as 116% of the nominal amount of the outstanding securities divided by
the conversion price which shall be equal to the offer price subject to market standard adjustments in the event of certain corporate actions
Option to repay The issuer may, in its sole discretion, repay all or some only of the bonds at any time subject to approval by the ECB acting within the
framework of SSM, at their initial nominal amount plus any interest accrued but unpaid, unless cancelled
Applicable law Greek law
Basel III Classification Classified as Common Equity Tier 1
Transferability Transferable by HFSF to another holder with the consent of the issuer and the regulator, per Art. 7(5)(b) of the HFSF Law
Issue Size €2,040,000,000
| APPENDIX
97
04 4.15 10NC5 T2 SUBORDINATED NOTES
| APPENDIX
T2 Indicative TermsIssuer Piraeus Group Finance PLC
Guarantor Piraeus Bank S.A.
Status Dated Subordinated, Tier 2
Format Reg S Fixed Rate Reset Note, bearer form, TEFRA D Rules apply
Expected Issue Rating Caa3 (Moody's) / CCC (S&P)
Form Fixed Rate Note
Currency EUR
Amount 400,000,000
Issue Date 26-Jun-19
Call Date 26-Jun-24
Maturity Date 26-Jun-29
Coupon 9.75% | Annual
Put / Call Option Issuer’s Call at par, subject to prior regulatory authorisation
Basis / Day Conversion Act / Act (ICMA)
Denomination 100k +1k
Paying Agent Deutsche Bank
Listing Luxembourg Stock Exchange
Clearer Euroclear / Cedel
ISIN XS2018638648
Governing Law English law | Greek law for Subordination of the Guarantee
Documentation Piraeus Bank EMTN Programme
Joint Lead Managers Goldman Sachs, UBS [co-manager: Piraeus Securities S.A.]
98
04 4.16 CREDIT RATINGS
Piraeus Bank | Long Term Rating
1 Aaa AAA AAA AAA
2 Aa1 AA+ AA+ AA high
3 Aa2 AA AA AA
4 Aa3 AA- AA- AA low
5 A1 A+ A+ A high
6 A2 A A A
7 A3 A- A- A low
8 Baa1 BBB+ BBB+ BBB high
9 Baa2 BBB BBB BBB
10 Baa3 BBB- BBB- BBB low
11 Ba1 BB+ BB+ BB high
12 Ba2 BB BB BB
13 Ba3 BB- BB- BB low
14 B1 B+ B+ B high
15 B2 B B B
16 B3 B- B- B low
17 Caa1 CCC+ CCC CCC high
18 Caa2 CCC - CCC
19 Caa3 CCC- - CCC low
20 Ca CC CC CC
21 C C C C
22 - SD RD SD
23 - D D D
Greece: Country Rating
Greece: Country Ceiling
Piraeus: Bank Rating
Piraeus Covered Bond
In
ve
st
me
nt
G
ra
de
No
n-
In
ve
st
me
nt
G
ra
de
| APPENDIX
Mar
-10
Au
g-10
Jan
-11
Jun
-11
No
v-11
Ap
r-1
2
Sep
-12
Feb
-13
Jul-
13
Dec
-13
May
-14
Oct
-14
Mar
-15
Au
g-15
Dec
-15
May
-16
Oct
-16
Mar
-17
Au
g-17
Jan
-18
Jun
-18
No
v-18
Ap
r-1
9
Moody's
S&P
FitchA2/AA3/A-
Baa1/BBB+Baa2/BBBBaa3/BBB-Ba1/BB+Ba2/BBBa3/BB-B1/B+B2/BB3/B-
Caa1/CCC+Caa2/CCCCaa3/CCC-
Ca/CCCa/CRDD
Piraeus: Sub/ed Rating
99
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 Net Fee Income (NFI or NF+CI) Net fee and commission income
3 Non Recurring (One-off) Items
• In Q3.18, €48mn of net fee and commission income relating to an extraordinary quality commission received forpast performance in our cooperation for general insurance business with an international partner was classifiedas one-off
• In Q2.18, €24mn loss in other income was flagged as one-off, €67mn of a reversal of loan impairments, and€32mn of impairments on other assets were classified as one-off
• In Q1.18, €132mn of Voluntary Exit Scheme (“VES”) staff costs, in Q3.18 and in Q4.18, €4mn and €18mn respectively of Voluntary Exit were classified as one-off, (“VES One-Off”)
4 Net Revenue Total Net Income
5 Operating Expenses (OpEx) Total operating expenses before provisions
6 Recurring operating expenses (Recurring OpEx) Operating Expenses excluding "Non Recurring (One-off) Items"
7 Pre Provision Income (PPI) Profit before provisions, impairments and income tax
8 Recurring Pre Provision Income Pre provision income excluding the one-off items
9Loan impairment charges (Provision Expenses)/impairments
ECL impairment charges on loans and advances to customers at amortised cost
10 Pre Tax Results/Pre Tax profits (PBT) Profit / (loss) before income tax
11 Net Results or Net Profit Profit / (loss) for the period attributable to equity holders of the parent
12 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [i.e. former ATEbank, the Greek banking operations of Cypriot Banks in Greece (Bank of Cyprus, Cyprus Popular Bank, Hellenic Bank), Millennium Bank S.A., Geniki Bank S.A. and Panellinia Bank S.A.] amounting to €5.6bn at the end of Mar.18, €3.5bn at the end of Dec.18, and €3.3bn at the end of Mar.19
13 Gross LoansLoans and advances to customers at amortised cost before ECL allowances for impairment on loans and advances to customers at amortised cost gross of PPA adjustments
| GLOSSARY
100
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (cont’d)
14 Net Loans Loans and advances to customers at amortised cost
15 Gross Book Value (GBV) Gross loans
16 Cost of Risk (CoR) ECL allowances for impairment on loans and advances to customers at amortised cost over net loans
17 Loans to Deposits Ratio (LDR) Net loans over deposits due to customers
18 Core Banking Income or NII+NFI Net interest income plus net fee and commission income
19 Cost to Income Ratio (CIR) Total operating expenses before provisions over total net income excluding one-off items
20 Adjusted total assets
Total assets excluding assets amounting to: 1) €3.3bn in Dec. 2018 of discontinued operations in Albania and Bulgaria, the OPEKEPE seasonal agri-loan, and other discontinued operations 2) €1.2bn in Mar. 2019 of discontinued operations in Bulgaria and other discontinued operations 3) €3.8bn in Mar. 2018 of discontinued operations in Serbia and Romania, other discontinued operations and operations in Bulgaria and Albania
21 RWA density Risk Weighted Assets over Adjusted total Assets
22 CET1 Capital Ratio on Pro-forma Basis CET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria
23 IFRS 9, First Time Adoption (FTA) The final impact of €2.0bn on regulatory capital (fully loaded) from IFRS 9 first time adoption on 1 January 2018
24 Performing Exposures (PE) Performing Exposures are Gross Loans minus Non Performing Exposures
25 NPEs - Non Performing Exposures
On balance sheet credit exposures before ECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments 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 and other unlikely to pay (UTP) criteria
26 NPE Ratio Non-performing exposure over gross loans before impairments & adjustments
27 NPE FormationChange of the stock of adjusted NPEs adding back write-downs or other adjustments i.e. loan sales or debt to equity transactions over loans and advances to customers before ECL allowance for impairment on loans and advances to customers at amortised cost.
| GLOSSARY
101
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (cont’d)
28 NPE (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Exposures
29 NPLs - Non Performing Loans Loans and advances to customers at amortised cost in arrears over 90 days past due gross of PPA adjustments
30 NPL Ratio Non-performing loans over gross loans before impairments & adjustments
31 NPL FormationChange of the stock of adjusted NPLs adding back write-offs or other adjustments i.e. loan sales or debt to equity transactions over loans and advances to customers at amortised cost before ECL allowance for impairment on loans and advances to customers at amortised cost.
32 NPL (Cash) Coverage RatioECL allowance for impairment on loans and advances to customers at amortised cost gross of PPA adjustments over Non-Performing Loans
33 Net Interest Margin (NIM) Net interest income over adjusted total assets.
34 NFI over Assets Net fee and commission income over adjusted total assets
35 Return on Assets (RoA) Profit / (loss) for the period over adjusted total assets
36 Cumulative provisions (Loan loss reserves – LLR) ECL allowance for impairments on loans and advances to customers at amortised cost gross of PPA adjustment
37 Cumulative provisions (LLRs) over gross loans Cumulative provision over gross loans
38 Deposits or Customer Deposits Due to customers
39 New Loan Generation New loan disbursements that were realized after previous end period
40 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
| GLOSSARY
102
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (cont’d)
41 Cross Selling Ratio Total product groups over total number of customers
42 PPE Property and equipment plus investment property
43 Tangible Book Value Equity minus value of cocos (€2,040mn) minus goodwill and intangibles (€297mn)
44 FTEs Full time employees
45 Liquidity Coverage Ratio (LCR)Liquidity coverage ratio is the amount of sufficient liquidity buffer for a bank to survive a significant stress scenariolasting one month
46 Net Stable Funding Ratio (NSFR)
The NSFR is expressed as a ratio that relates the bank's available stable funding (AFS) to its required stable funding (RSF). A bank's total ASF is the portion of its capital and liabilities that will remain with the institution for more than one year. A bank's total RSF is the amount of stable funding that it is required to hold given the liquidity characteristics and residual maturities of its assets and the contingent liquidity risk arising from its off-balance sheet exposures.
47 DTAs Deferred Tax Assets
48 DTC Deferred Tax Credit
49 RoTE (Return on Tangible Equity) Net profit over: Total Equity minus cocos minus goodwill and intangibles
50 Texas ratio NPLs / (Cumulative Provisions + Regulatory Capital)
51 Net NPE ratio NPEs net of cumulative provisions
52 OpEx/Assets Total operating expenses over adjusted assets
53 Assets/FTEs Adjusted total assets over FTEs
| GLOSSARY
DisclaimerThe accompanying presentation has been prepared by Piraeus Bank S.A. and its subsidiaries and affiliates (the “Bank” or “We”) solely for informational purposes. For the purposes of this disclaimer, thepresentation that 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 thepresentation is made, or otherwise 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 thelegal and regulatory sanctions attached to the misuse, disclosure or improper circulation of the presentation or any information contained herein.
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 legal,accounting, 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 forforming your 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 theBank and you should consult with your own advisers as to the legal, tax, business, financial and related aspects and/or consequences of any investment decision. No responsibility or liability is accepted by anyperson for any of the information or for any action taken by you or any of your officers, employees, agents or associates on the basis of such information.
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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 shouldbe considered 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 “targets,” “believes,”“expects,” “aims,” “intends,” “may,” “anticipates,” “would,” “could” 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 Bank’sstrategies, plans, objectives, initiatives and targets, its businesses, outlook, political, economic or other conditions in Greece or elsewhere, the Bank’s 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 and/or 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 Bank.Therefore, 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 oneor more 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 suchdifferences, our 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 statementsspeak only as of 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 reflectevents or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.
Investor Relations Contacts
Chryssanthi Berbati Antonis Sagris Xenofon Damalas, CFA George Doukas Αmalia Missailidi
4 Amerikis St., 105 64 AthensTel. : (+30 ) 210 [email protected]
Bloomberg: TPEIR GA | Reuters: BOPr.AT ISIN: GRS014003024 www.piraeusbankgroup.com
Latest Update: 24 June 2019
PIRAEUS BANK GROUP HEADQUARTERS
4, Amerikis Str., 105 64 Athens, Greece, T. +30 210 333 5026
www.piraeusbankgroup.com
