November 2017
PIRAEUS BANK GROUP
PRESENTATIONBASED ON Q218 FINANCIAL RESULTS
TABLE OF CONTENTS
01 EXECUTIVE SUMMARY
02 FINANCIAL PERFORMANCE
03 ASSET QUALITY
04 LIQUIDITY
05 APPENDIX
01E X EC U T I V E S U M M A RY
| EXECUTIVE SUMMARY
01
4
11 CONCLUSION OF THE GREEK ESM PROGRAMME
bull For the first time since 2010 Greece will not rely on official sector loans
bull The 21 June 2018 Eurogroup agreement to ensure Greek debt
sustainability for the medium and longer term euro24bn cash buffer
bull The country will remain under Enhanced Surveillance Procedure (ESP)
for many years to ensure continuation of fiscal and structural reforms
bull The economy has been growing and unemployment has been falling
since 2017 and both trends will likely accelerate in the coming years
bull The Greek banking system is stronger following major consolidation
restructuring and deleveraging efforts
bull Greecersquos rating has been upgraded by all key four rating agencies this
year while three out of four assign a positive outlook to their rating
bull Greece is gradually regaining investor trust having successfully
returned to the capital markets in 2017 and early 2018
2000 euro190bn
2016 euro185bn
2017 euro187bn
140
150
160
170
180
190
200
210
220
230
240
250
260
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Real GDP Long term average
July18 190 (monthly data)
00
50
100
150
200
250
300
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Unemployment rate Long term average
Unemployment Rate ()
Real GDP (eurobn nsa)
20 22
-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
Q1
18
Q2
18
2018
2019
QoQ change YoY change
| EXECUTIVE SUMMARY
01
5
12 OUTLOOK FOR THE GREEK ECONOMY
Sources ELSTAT BoG Bloomberg Piraeus Bank Economic Research
Real GDP Returns to Growth Trajectory (2017 +14 H118 +22)
Unemployment Rate Fallen Significantly (2017 215) Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
30
35
40
45
50
55
60
Q2
04
Q2
05
Q2
06
Q2
07
Q2
08
Q2
09
Q2
10
Q2
11
Q2
12
Q2
13
Q2
14
Q2
15
Q2
16
Q2
17
Q2
18
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
190169
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
2016 euro56bn
2017 euro60bn
10
20
30
40
50
60
70
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Exports of goods and services
Long term average
Exports Improve Notably
2018-2019
outlook
05
01
| EXECUTIVE SUMMARY
01
6
13 PIRAEUS BANK RECENT DEVELOPMENTS
Concluding Restructuring Plan commitments bull Agreement for the sale of Tirana Bank (capital accretive transaction)bull Binding offers for Piraeus Bank Bulgaria received
NPE sales bull Arctos amp Amoeba transactions agreed in H118bull 2 new NPE sales in H218 and H119 in the
pipeline Project Iris regarding consumer small business loans and Project Nemo regarding shipping loans
Project Solarthe 4 Greek systemic Banks entered into an agreement with doBank SpA for the management of SME NPE common borrowers (euro18bn)
1st e-loan in Greece (personal loan 17k applications since Jun18)
No impact from the ECB waiver upliftthrough the use of Greek assets as
collateral in interbank repo market
ELA funding zeroedas of mid July 2018
Rating upgradesbull DBRS assigned Investment
Grade (BBB low) rating to
Piraeus Bankrsquos Global
Covered Bonds (CB) As a
result euro4bn of retained CBs
are eligible for ECB
refinancing
bull SampP upgraded 2 Piraeus
Bank Structured Finance
Notes (RMBS) to IG (BBB-)
02 03 04
06
07
| EXECUTIVE SUMMARY
01
7
14 GROUP FINANCIAL HIGHLIGHTS
Results Liquidity NPEs Core Bank
euro24mn SHs net profit in Q2 from euro15mn(1) in Q1
92 LDR in Greece
-euro35bnNPE in H1
euro206mn net profit in H1
bull NIM of 246 in H1
bull OpEx down 4 yoy in H1
bull CoR 158 in H1
bull Deposits in Greece +euro1bn in H1
bull Repos ceuro4bn (Αug18)
bull Covered Bonds BBB(low) rating
bull Sales euro17bn in Q2
bull Decreasing NPE inflows
bull Increased restructurings
bull NIM of 306
bull NFI of 073
bull RoA at 11
(1) excluding euro132mn VES cost on a post-tax basis both euro24mn and euro15mn exclude result from discontinued operations
| EXECUTIVE SUMMARY
01
8
15 PIRAEUS BANK TURN-AROUND
bull euro35bn provisions in the past 3qrsquos accelerated NPE clean-up process with euro44bn NPE decrease in the past 3qrsquos
bull Supervisory reviews including CFR performed on euro135bn loans and collective provisions review on euro392bn loans
bull Management actions address supervisory expectations and input from the reviews post conclusion of capital plan
bull RWA size for Piraeus Legacy Unit at euro194bn contracting by euro18bn qoq -euro47bn yoy
bull DG Comp Restructuring Plan is near completion with Albanian and Bulgarian business classified as discontinued
bull Strong growth for Piraeus Core Bank with net recurring profit of euro206mn in H118
bull Increasing new loan generation to euro31bn in 2018 from euro27bn in 2017
bull RWA size at euro295bn +euro05bn qoq +euro1bn yoy
bull Cost optimization with ceuro200mn cumulative cost savings for 2018-2020 period
bull Customer base at 52mn with cross selling ratio to 346x compared to 333x a year ago first e-loan in the Greek market
Clean-up
Business model
Piraeus Legacy Unit (PLU)
Piraeus Core Bank
Note CFR Credit File Review
9
16 GROUP BALANCE SHEET01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Jun18
Assets (1) 674 568
Gross Loans (2) 603 537
Net Loans (2) 447 394
Loan Loss Reserves (2 3) 155 144
Customer Deposits (2) 427 421
Eurosystem Funding 97 18
92 LDR-Greeceenhanced liquidity profile
ELA eliminated in mid-July 2018
27LLRs over loans
euro31bnnew loan generation
budgeted for 2018
(H1 on track)
(1) Assets of Jun18 vs Dec17 exclude completed sales (Avis Serbia Romania) αswell as planned divestments (Albania Bulgaria agreed NPE sales)
(2) Gross loans net loans loan loss reserves and customer deposits of Jun18 excludeoperations in Bulgaria and Albania which as of Q218 were classified asdiscontinued
(3) Loan loss reserves as of 01012018 amounted to euro171bn incl IFRS9 FTA impact
10
17 SELECTED GROUP BALANCE SHEET ITEMS DEVELOPMENT01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn)
Gross Loans (eurobn)
Deposits (eurobn)
603
-10 -16 -18 -16 -06
537
Dec17 DiscOperations
SeasonalAgri Loan
Sales Write-offs H1Net delta
Jun18
155 +17
-13 -16
+03
-04
144
Dec17 IFRS9[loans]
Sales Write-offs Costof risk
Other Jun18
427
-16 -06
+04 +10 +02 421
Dec17 DiscOperations
SeasonalAgri Loan
StateDeposits
HouseholdDeposits
BusinessDeposits
Jun18
674
-46-16 -05 -14 -20 -05
568
Dec17 Disc Ops SeasonalAgri Loan
Sales EFSFBonds
IFRS9FTA
H1Net delta
Jun18
Note in assets movement discontinued operations delta includes Avis Serbia Romania Albania Bulgaria and the 2 NPE sales portfolios In the other items this elementincludes Bulgaria and Albania which were classified as discontinued during H118
+euro10bn
Q118 -euro04bnQ218 -euro02bn
11
18 GROUP OPERATIONAL PERFORMANCE01
| EXECUTIVE SUMMARY
Group (1) euromn Q118 Q218 qoq
Net Revenues | recurring 450 484 8
Operating Expenses | recurring (244) (261) 7
Pre Provision Income | recurring 206 224 8
Loan Impairment (163) (149) -9
Other Items (2) (17) (31) -
Non Recurring Items (3) (142) 7
Pre Tax Result -115 51 -
Net Results Attrib to SHs -79 24 -
Net Result from Discrsquod Ops Attrib to SHs (4) (3) (309)
246bps NIMover assets in Q2
54 CIdown qoq
53bps NFI over assets in Q2
151bps CoRin Q2
Note assets adjusted for discontinued and held for sale operations (1) PampL figures illustrated exclude the Grouprsquos discontinued operations
(2) Other Items line includes associatesrsquo income amp other impairments
(3) Non Recurring Items include
for Q118 euro142mn VES and staff costs related to FTEs who left the Bank in H1 [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro4mn staff costs [reported in OpEx] reversal of loan impairment ofeuro67mn from the sale of 2 NPE portfolios [reported in loan impairment] and euro32mn loss [reported in other impairment]
(4) Discontinued operations posted a loss of euro3127 million in H118 This figure incorporates a negative amount of euro139mnof FX reserves from Romania and Serbia with no effect in equity capital as it had affected it in the past
H118 -4 yoy
12
19 GROUP PampL DYNAMICS01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)
bull Resiliency of NII on the back of
o new loan generation priced higher than legacy book (Q218 477 vs 352) along with increasing loan generation
o deposit costs are also trending lower (Q218 044 vs 046 in Q1)
o covered bonds eligibility for ECB funding
bull NFI contribution expected stronger in H218 on the back of bancassurance revenues cards business farmers business etc
bull 16 key initiatives to reduce cost base in Greece gteuro200mn in 2018-2020 (actions of euro86mn already taken) FY18 c-6 yoy est
0508
00
10
20
30
40
Q118 Q218 FY18
OpEx (euromn)Net Fee Income (euromn)
74 75
0
100
200
300
400
Q118 Q218 FY18
244 261
0
300
600
900
1200
Q118 Q218 FY18
Net Interest Income (euromn)
350349
0
500
1000
1500
Q118 Q218 FY18
~euro14bn
~euro035bn
~euro31bn
~euro104bn
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
TABLE OF CONTENTS
01 EXECUTIVE SUMMARY
02 FINANCIAL PERFORMANCE
03 ASSET QUALITY
04 LIQUIDITY
05 APPENDIX
01E X EC U T I V E S U M M A RY
| EXECUTIVE SUMMARY
01
4
11 CONCLUSION OF THE GREEK ESM PROGRAMME
bull For the first time since 2010 Greece will not rely on official sector loans
bull The 21 June 2018 Eurogroup agreement to ensure Greek debt
sustainability for the medium and longer term euro24bn cash buffer
bull The country will remain under Enhanced Surveillance Procedure (ESP)
for many years to ensure continuation of fiscal and structural reforms
bull The economy has been growing and unemployment has been falling
since 2017 and both trends will likely accelerate in the coming years
bull The Greek banking system is stronger following major consolidation
restructuring and deleveraging efforts
bull Greecersquos rating has been upgraded by all key four rating agencies this
year while three out of four assign a positive outlook to their rating
bull Greece is gradually regaining investor trust having successfully
returned to the capital markets in 2017 and early 2018
2000 euro190bn
2016 euro185bn
2017 euro187bn
140
150
160
170
180
190
200
210
220
230
240
250
260
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Real GDP Long term average
July18 190 (monthly data)
00
50
100
150
200
250
300
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Unemployment rate Long term average
Unemployment Rate ()
Real GDP (eurobn nsa)
20 22
-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
Q1
18
Q2
18
2018
2019
QoQ change YoY change
| EXECUTIVE SUMMARY
01
5
12 OUTLOOK FOR THE GREEK ECONOMY
Sources ELSTAT BoG Bloomberg Piraeus Bank Economic Research
Real GDP Returns to Growth Trajectory (2017 +14 H118 +22)
Unemployment Rate Fallen Significantly (2017 215) Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
30
35
40
45
50
55
60
Q2
04
Q2
05
Q2
06
Q2
07
Q2
08
Q2
09
Q2
10
Q2
11
Q2
12
Q2
13
Q2
14
Q2
15
Q2
16
Q2
17
Q2
18
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
190169
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
2016 euro56bn
2017 euro60bn
10
20
30
40
50
60
70
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Exports of goods and services
Long term average
Exports Improve Notably
2018-2019
outlook
05
01
| EXECUTIVE SUMMARY
01
6
13 PIRAEUS BANK RECENT DEVELOPMENTS
Concluding Restructuring Plan commitments bull Agreement for the sale of Tirana Bank (capital accretive transaction)bull Binding offers for Piraeus Bank Bulgaria received
NPE sales bull Arctos amp Amoeba transactions agreed in H118bull 2 new NPE sales in H218 and H119 in the
pipeline Project Iris regarding consumer small business loans and Project Nemo regarding shipping loans
Project Solarthe 4 Greek systemic Banks entered into an agreement with doBank SpA for the management of SME NPE common borrowers (euro18bn)
1st e-loan in Greece (personal loan 17k applications since Jun18)
No impact from the ECB waiver upliftthrough the use of Greek assets as
collateral in interbank repo market
ELA funding zeroedas of mid July 2018
Rating upgradesbull DBRS assigned Investment
Grade (BBB low) rating to
Piraeus Bankrsquos Global
Covered Bonds (CB) As a
result euro4bn of retained CBs
are eligible for ECB
refinancing
bull SampP upgraded 2 Piraeus
Bank Structured Finance
Notes (RMBS) to IG (BBB-)
02 03 04
06
07
| EXECUTIVE SUMMARY
01
7
14 GROUP FINANCIAL HIGHLIGHTS
Results Liquidity NPEs Core Bank
euro24mn SHs net profit in Q2 from euro15mn(1) in Q1
92 LDR in Greece
-euro35bnNPE in H1
euro206mn net profit in H1
bull NIM of 246 in H1
bull OpEx down 4 yoy in H1
bull CoR 158 in H1
bull Deposits in Greece +euro1bn in H1
bull Repos ceuro4bn (Αug18)
bull Covered Bonds BBB(low) rating
bull Sales euro17bn in Q2
bull Decreasing NPE inflows
bull Increased restructurings
bull NIM of 306
bull NFI of 073
bull RoA at 11
(1) excluding euro132mn VES cost on a post-tax basis both euro24mn and euro15mn exclude result from discontinued operations
| EXECUTIVE SUMMARY
01
8
15 PIRAEUS BANK TURN-AROUND
bull euro35bn provisions in the past 3qrsquos accelerated NPE clean-up process with euro44bn NPE decrease in the past 3qrsquos
bull Supervisory reviews including CFR performed on euro135bn loans and collective provisions review on euro392bn loans
bull Management actions address supervisory expectations and input from the reviews post conclusion of capital plan
bull RWA size for Piraeus Legacy Unit at euro194bn contracting by euro18bn qoq -euro47bn yoy
bull DG Comp Restructuring Plan is near completion with Albanian and Bulgarian business classified as discontinued
bull Strong growth for Piraeus Core Bank with net recurring profit of euro206mn in H118
bull Increasing new loan generation to euro31bn in 2018 from euro27bn in 2017
bull RWA size at euro295bn +euro05bn qoq +euro1bn yoy
bull Cost optimization with ceuro200mn cumulative cost savings for 2018-2020 period
bull Customer base at 52mn with cross selling ratio to 346x compared to 333x a year ago first e-loan in the Greek market
Clean-up
Business model
Piraeus Legacy Unit (PLU)
Piraeus Core Bank
Note CFR Credit File Review
9
16 GROUP BALANCE SHEET01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Jun18
Assets (1) 674 568
Gross Loans (2) 603 537
Net Loans (2) 447 394
Loan Loss Reserves (2 3) 155 144
Customer Deposits (2) 427 421
Eurosystem Funding 97 18
92 LDR-Greeceenhanced liquidity profile
ELA eliminated in mid-July 2018
27LLRs over loans
euro31bnnew loan generation
budgeted for 2018
(H1 on track)
(1) Assets of Jun18 vs Dec17 exclude completed sales (Avis Serbia Romania) αswell as planned divestments (Albania Bulgaria agreed NPE sales)
(2) Gross loans net loans loan loss reserves and customer deposits of Jun18 excludeoperations in Bulgaria and Albania which as of Q218 were classified asdiscontinued
(3) Loan loss reserves as of 01012018 amounted to euro171bn incl IFRS9 FTA impact
10
17 SELECTED GROUP BALANCE SHEET ITEMS DEVELOPMENT01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn)
Gross Loans (eurobn)
Deposits (eurobn)
603
-10 -16 -18 -16 -06
537
Dec17 DiscOperations
SeasonalAgri Loan
Sales Write-offs H1Net delta
Jun18
155 +17
-13 -16
+03
-04
144
Dec17 IFRS9[loans]
Sales Write-offs Costof risk
Other Jun18
427
-16 -06
+04 +10 +02 421
Dec17 DiscOperations
SeasonalAgri Loan
StateDeposits
HouseholdDeposits
BusinessDeposits
Jun18
674
-46-16 -05 -14 -20 -05
568
Dec17 Disc Ops SeasonalAgri Loan
Sales EFSFBonds
IFRS9FTA
H1Net delta
Jun18
Note in assets movement discontinued operations delta includes Avis Serbia Romania Albania Bulgaria and the 2 NPE sales portfolios In the other items this elementincludes Bulgaria and Albania which were classified as discontinued during H118
+euro10bn
Q118 -euro04bnQ218 -euro02bn
11
18 GROUP OPERATIONAL PERFORMANCE01
| EXECUTIVE SUMMARY
Group (1) euromn Q118 Q218 qoq
Net Revenues | recurring 450 484 8
Operating Expenses | recurring (244) (261) 7
Pre Provision Income | recurring 206 224 8
Loan Impairment (163) (149) -9
Other Items (2) (17) (31) -
Non Recurring Items (3) (142) 7
Pre Tax Result -115 51 -
Net Results Attrib to SHs -79 24 -
Net Result from Discrsquod Ops Attrib to SHs (4) (3) (309)
246bps NIMover assets in Q2
54 CIdown qoq
53bps NFI over assets in Q2
151bps CoRin Q2
Note assets adjusted for discontinued and held for sale operations (1) PampL figures illustrated exclude the Grouprsquos discontinued operations
(2) Other Items line includes associatesrsquo income amp other impairments
(3) Non Recurring Items include
for Q118 euro142mn VES and staff costs related to FTEs who left the Bank in H1 [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro4mn staff costs [reported in OpEx] reversal of loan impairment ofeuro67mn from the sale of 2 NPE portfolios [reported in loan impairment] and euro32mn loss [reported in other impairment]
(4) Discontinued operations posted a loss of euro3127 million in H118 This figure incorporates a negative amount of euro139mnof FX reserves from Romania and Serbia with no effect in equity capital as it had affected it in the past
H118 -4 yoy
12
19 GROUP PampL DYNAMICS01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)
bull Resiliency of NII on the back of
o new loan generation priced higher than legacy book (Q218 477 vs 352) along with increasing loan generation
o deposit costs are also trending lower (Q218 044 vs 046 in Q1)
o covered bonds eligibility for ECB funding
bull NFI contribution expected stronger in H218 on the back of bancassurance revenues cards business farmers business etc
bull 16 key initiatives to reduce cost base in Greece gteuro200mn in 2018-2020 (actions of euro86mn already taken) FY18 c-6 yoy est
0508
00
10
20
30
40
Q118 Q218 FY18
OpEx (euromn)Net Fee Income (euromn)
74 75
0
100
200
300
400
Q118 Q218 FY18
244 261
0
300
600
900
1200
Q118 Q218 FY18
Net Interest Income (euromn)
350349
0
500
1000
1500
Q118 Q218 FY18
~euro14bn
~euro035bn
~euro31bn
~euro104bn
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
01E X EC U T I V E S U M M A RY
| EXECUTIVE SUMMARY
01
4
11 CONCLUSION OF THE GREEK ESM PROGRAMME
bull For the first time since 2010 Greece will not rely on official sector loans
bull The 21 June 2018 Eurogroup agreement to ensure Greek debt
sustainability for the medium and longer term euro24bn cash buffer
bull The country will remain under Enhanced Surveillance Procedure (ESP)
for many years to ensure continuation of fiscal and structural reforms
bull The economy has been growing and unemployment has been falling
since 2017 and both trends will likely accelerate in the coming years
bull The Greek banking system is stronger following major consolidation
restructuring and deleveraging efforts
bull Greecersquos rating has been upgraded by all key four rating agencies this
year while three out of four assign a positive outlook to their rating
bull Greece is gradually regaining investor trust having successfully
returned to the capital markets in 2017 and early 2018
2000 euro190bn
2016 euro185bn
2017 euro187bn
140
150
160
170
180
190
200
210
220
230
240
250
260
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Real GDP Long term average
July18 190 (monthly data)
00
50
100
150
200
250
300
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Unemployment rate Long term average
Unemployment Rate ()
Real GDP (eurobn nsa)
20 22
-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
Q1
18
Q2
18
2018
2019
QoQ change YoY change
| EXECUTIVE SUMMARY
01
5
12 OUTLOOK FOR THE GREEK ECONOMY
Sources ELSTAT BoG Bloomberg Piraeus Bank Economic Research
Real GDP Returns to Growth Trajectory (2017 +14 H118 +22)
Unemployment Rate Fallen Significantly (2017 215) Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
30
35
40
45
50
55
60
Q2
04
Q2
05
Q2
06
Q2
07
Q2
08
Q2
09
Q2
10
Q2
11
Q2
12
Q2
13
Q2
14
Q2
15
Q2
16
Q2
17
Q2
18
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
190169
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
2016 euro56bn
2017 euro60bn
10
20
30
40
50
60
70
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Exports of goods and services
Long term average
Exports Improve Notably
2018-2019
outlook
05
01
| EXECUTIVE SUMMARY
01
6
13 PIRAEUS BANK RECENT DEVELOPMENTS
Concluding Restructuring Plan commitments bull Agreement for the sale of Tirana Bank (capital accretive transaction)bull Binding offers for Piraeus Bank Bulgaria received
NPE sales bull Arctos amp Amoeba transactions agreed in H118bull 2 new NPE sales in H218 and H119 in the
pipeline Project Iris regarding consumer small business loans and Project Nemo regarding shipping loans
Project Solarthe 4 Greek systemic Banks entered into an agreement with doBank SpA for the management of SME NPE common borrowers (euro18bn)
1st e-loan in Greece (personal loan 17k applications since Jun18)
No impact from the ECB waiver upliftthrough the use of Greek assets as
collateral in interbank repo market
ELA funding zeroedas of mid July 2018
Rating upgradesbull DBRS assigned Investment
Grade (BBB low) rating to
Piraeus Bankrsquos Global
Covered Bonds (CB) As a
result euro4bn of retained CBs
are eligible for ECB
refinancing
bull SampP upgraded 2 Piraeus
Bank Structured Finance
Notes (RMBS) to IG (BBB-)
02 03 04
06
07
| EXECUTIVE SUMMARY
01
7
14 GROUP FINANCIAL HIGHLIGHTS
Results Liquidity NPEs Core Bank
euro24mn SHs net profit in Q2 from euro15mn(1) in Q1
92 LDR in Greece
-euro35bnNPE in H1
euro206mn net profit in H1
bull NIM of 246 in H1
bull OpEx down 4 yoy in H1
bull CoR 158 in H1
bull Deposits in Greece +euro1bn in H1
bull Repos ceuro4bn (Αug18)
bull Covered Bonds BBB(low) rating
bull Sales euro17bn in Q2
bull Decreasing NPE inflows
bull Increased restructurings
bull NIM of 306
bull NFI of 073
bull RoA at 11
(1) excluding euro132mn VES cost on a post-tax basis both euro24mn and euro15mn exclude result from discontinued operations
| EXECUTIVE SUMMARY
01
8
15 PIRAEUS BANK TURN-AROUND
bull euro35bn provisions in the past 3qrsquos accelerated NPE clean-up process with euro44bn NPE decrease in the past 3qrsquos
bull Supervisory reviews including CFR performed on euro135bn loans and collective provisions review on euro392bn loans
bull Management actions address supervisory expectations and input from the reviews post conclusion of capital plan
bull RWA size for Piraeus Legacy Unit at euro194bn contracting by euro18bn qoq -euro47bn yoy
bull DG Comp Restructuring Plan is near completion with Albanian and Bulgarian business classified as discontinued
bull Strong growth for Piraeus Core Bank with net recurring profit of euro206mn in H118
bull Increasing new loan generation to euro31bn in 2018 from euro27bn in 2017
bull RWA size at euro295bn +euro05bn qoq +euro1bn yoy
bull Cost optimization with ceuro200mn cumulative cost savings for 2018-2020 period
bull Customer base at 52mn with cross selling ratio to 346x compared to 333x a year ago first e-loan in the Greek market
Clean-up
Business model
Piraeus Legacy Unit (PLU)
Piraeus Core Bank
Note CFR Credit File Review
9
16 GROUP BALANCE SHEET01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Jun18
Assets (1) 674 568
Gross Loans (2) 603 537
Net Loans (2) 447 394
Loan Loss Reserves (2 3) 155 144
Customer Deposits (2) 427 421
Eurosystem Funding 97 18
92 LDR-Greeceenhanced liquidity profile
ELA eliminated in mid-July 2018
27LLRs over loans
euro31bnnew loan generation
budgeted for 2018
(H1 on track)
(1) Assets of Jun18 vs Dec17 exclude completed sales (Avis Serbia Romania) αswell as planned divestments (Albania Bulgaria agreed NPE sales)
(2) Gross loans net loans loan loss reserves and customer deposits of Jun18 excludeoperations in Bulgaria and Albania which as of Q218 were classified asdiscontinued
(3) Loan loss reserves as of 01012018 amounted to euro171bn incl IFRS9 FTA impact
10
17 SELECTED GROUP BALANCE SHEET ITEMS DEVELOPMENT01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn)
Gross Loans (eurobn)
Deposits (eurobn)
603
-10 -16 -18 -16 -06
537
Dec17 DiscOperations
SeasonalAgri Loan
Sales Write-offs H1Net delta
Jun18
155 +17
-13 -16
+03
-04
144
Dec17 IFRS9[loans]
Sales Write-offs Costof risk
Other Jun18
427
-16 -06
+04 +10 +02 421
Dec17 DiscOperations
SeasonalAgri Loan
StateDeposits
HouseholdDeposits
BusinessDeposits
Jun18
674
-46-16 -05 -14 -20 -05
568
Dec17 Disc Ops SeasonalAgri Loan
Sales EFSFBonds
IFRS9FTA
H1Net delta
Jun18
Note in assets movement discontinued operations delta includes Avis Serbia Romania Albania Bulgaria and the 2 NPE sales portfolios In the other items this elementincludes Bulgaria and Albania which were classified as discontinued during H118
+euro10bn
Q118 -euro04bnQ218 -euro02bn
11
18 GROUP OPERATIONAL PERFORMANCE01
| EXECUTIVE SUMMARY
Group (1) euromn Q118 Q218 qoq
Net Revenues | recurring 450 484 8
Operating Expenses | recurring (244) (261) 7
Pre Provision Income | recurring 206 224 8
Loan Impairment (163) (149) -9
Other Items (2) (17) (31) -
Non Recurring Items (3) (142) 7
Pre Tax Result -115 51 -
Net Results Attrib to SHs -79 24 -
Net Result from Discrsquod Ops Attrib to SHs (4) (3) (309)
246bps NIMover assets in Q2
54 CIdown qoq
53bps NFI over assets in Q2
151bps CoRin Q2
Note assets adjusted for discontinued and held for sale operations (1) PampL figures illustrated exclude the Grouprsquos discontinued operations
(2) Other Items line includes associatesrsquo income amp other impairments
(3) Non Recurring Items include
for Q118 euro142mn VES and staff costs related to FTEs who left the Bank in H1 [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro4mn staff costs [reported in OpEx] reversal of loan impairment ofeuro67mn from the sale of 2 NPE portfolios [reported in loan impairment] and euro32mn loss [reported in other impairment]
(4) Discontinued operations posted a loss of euro3127 million in H118 This figure incorporates a negative amount of euro139mnof FX reserves from Romania and Serbia with no effect in equity capital as it had affected it in the past
H118 -4 yoy
12
19 GROUP PampL DYNAMICS01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)
bull Resiliency of NII on the back of
o new loan generation priced higher than legacy book (Q218 477 vs 352) along with increasing loan generation
o deposit costs are also trending lower (Q218 044 vs 046 in Q1)
o covered bonds eligibility for ECB funding
bull NFI contribution expected stronger in H218 on the back of bancassurance revenues cards business farmers business etc
bull 16 key initiatives to reduce cost base in Greece gteuro200mn in 2018-2020 (actions of euro86mn already taken) FY18 c-6 yoy est
0508
00
10
20
30
40
Q118 Q218 FY18
OpEx (euromn)Net Fee Income (euromn)
74 75
0
100
200
300
400
Q118 Q218 FY18
244 261
0
300
600
900
1200
Q118 Q218 FY18
Net Interest Income (euromn)
350349
0
500
1000
1500
Q118 Q218 FY18
~euro14bn
~euro035bn
~euro31bn
~euro104bn
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
| EXECUTIVE SUMMARY
01
4
11 CONCLUSION OF THE GREEK ESM PROGRAMME
bull For the first time since 2010 Greece will not rely on official sector loans
bull The 21 June 2018 Eurogroup agreement to ensure Greek debt
sustainability for the medium and longer term euro24bn cash buffer
bull The country will remain under Enhanced Surveillance Procedure (ESP)
for many years to ensure continuation of fiscal and structural reforms
bull The economy has been growing and unemployment has been falling
since 2017 and both trends will likely accelerate in the coming years
bull The Greek banking system is stronger following major consolidation
restructuring and deleveraging efforts
bull Greecersquos rating has been upgraded by all key four rating agencies this
year while three out of four assign a positive outlook to their rating
bull Greece is gradually regaining investor trust having successfully
returned to the capital markets in 2017 and early 2018
2000 euro190bn
2016 euro185bn
2017 euro187bn
140
150
160
170
180
190
200
210
220
230
240
250
260
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Real GDP Long term average
July18 190 (monthly data)
00
50
100
150
200
250
300
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Unemployment rate Long term average
Unemployment Rate ()
Real GDP (eurobn nsa)
20 22
-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
Q1
18
Q2
18
2018
2019
QoQ change YoY change
| EXECUTIVE SUMMARY
01
5
12 OUTLOOK FOR THE GREEK ECONOMY
Sources ELSTAT BoG Bloomberg Piraeus Bank Economic Research
Real GDP Returns to Growth Trajectory (2017 +14 H118 +22)
Unemployment Rate Fallen Significantly (2017 215) Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
30
35
40
45
50
55
60
Q2
04
Q2
05
Q2
06
Q2
07
Q2
08
Q2
09
Q2
10
Q2
11
Q2
12
Q2
13
Q2
14
Q2
15
Q2
16
Q2
17
Q2
18
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
190169
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
2016 euro56bn
2017 euro60bn
10
20
30
40
50
60
70
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Exports of goods and services
Long term average
Exports Improve Notably
2018-2019
outlook
05
01
| EXECUTIVE SUMMARY
01
6
13 PIRAEUS BANK RECENT DEVELOPMENTS
Concluding Restructuring Plan commitments bull Agreement for the sale of Tirana Bank (capital accretive transaction)bull Binding offers for Piraeus Bank Bulgaria received
NPE sales bull Arctos amp Amoeba transactions agreed in H118bull 2 new NPE sales in H218 and H119 in the
pipeline Project Iris regarding consumer small business loans and Project Nemo regarding shipping loans
Project Solarthe 4 Greek systemic Banks entered into an agreement with doBank SpA for the management of SME NPE common borrowers (euro18bn)
1st e-loan in Greece (personal loan 17k applications since Jun18)
No impact from the ECB waiver upliftthrough the use of Greek assets as
collateral in interbank repo market
ELA funding zeroedas of mid July 2018
Rating upgradesbull DBRS assigned Investment
Grade (BBB low) rating to
Piraeus Bankrsquos Global
Covered Bonds (CB) As a
result euro4bn of retained CBs
are eligible for ECB
refinancing
bull SampP upgraded 2 Piraeus
Bank Structured Finance
Notes (RMBS) to IG (BBB-)
02 03 04
06
07
| EXECUTIVE SUMMARY
01
7
14 GROUP FINANCIAL HIGHLIGHTS
Results Liquidity NPEs Core Bank
euro24mn SHs net profit in Q2 from euro15mn(1) in Q1
92 LDR in Greece
-euro35bnNPE in H1
euro206mn net profit in H1
bull NIM of 246 in H1
bull OpEx down 4 yoy in H1
bull CoR 158 in H1
bull Deposits in Greece +euro1bn in H1
bull Repos ceuro4bn (Αug18)
bull Covered Bonds BBB(low) rating
bull Sales euro17bn in Q2
bull Decreasing NPE inflows
bull Increased restructurings
bull NIM of 306
bull NFI of 073
bull RoA at 11
(1) excluding euro132mn VES cost on a post-tax basis both euro24mn and euro15mn exclude result from discontinued operations
| EXECUTIVE SUMMARY
01
8
15 PIRAEUS BANK TURN-AROUND
bull euro35bn provisions in the past 3qrsquos accelerated NPE clean-up process with euro44bn NPE decrease in the past 3qrsquos
bull Supervisory reviews including CFR performed on euro135bn loans and collective provisions review on euro392bn loans
bull Management actions address supervisory expectations and input from the reviews post conclusion of capital plan
bull RWA size for Piraeus Legacy Unit at euro194bn contracting by euro18bn qoq -euro47bn yoy
bull DG Comp Restructuring Plan is near completion with Albanian and Bulgarian business classified as discontinued
bull Strong growth for Piraeus Core Bank with net recurring profit of euro206mn in H118
bull Increasing new loan generation to euro31bn in 2018 from euro27bn in 2017
bull RWA size at euro295bn +euro05bn qoq +euro1bn yoy
bull Cost optimization with ceuro200mn cumulative cost savings for 2018-2020 period
bull Customer base at 52mn with cross selling ratio to 346x compared to 333x a year ago first e-loan in the Greek market
Clean-up
Business model
Piraeus Legacy Unit (PLU)
Piraeus Core Bank
Note CFR Credit File Review
9
16 GROUP BALANCE SHEET01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Jun18
Assets (1) 674 568
Gross Loans (2) 603 537
Net Loans (2) 447 394
Loan Loss Reserves (2 3) 155 144
Customer Deposits (2) 427 421
Eurosystem Funding 97 18
92 LDR-Greeceenhanced liquidity profile
ELA eliminated in mid-July 2018
27LLRs over loans
euro31bnnew loan generation
budgeted for 2018
(H1 on track)
(1) Assets of Jun18 vs Dec17 exclude completed sales (Avis Serbia Romania) αswell as planned divestments (Albania Bulgaria agreed NPE sales)
(2) Gross loans net loans loan loss reserves and customer deposits of Jun18 excludeoperations in Bulgaria and Albania which as of Q218 were classified asdiscontinued
(3) Loan loss reserves as of 01012018 amounted to euro171bn incl IFRS9 FTA impact
10
17 SELECTED GROUP BALANCE SHEET ITEMS DEVELOPMENT01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn)
Gross Loans (eurobn)
Deposits (eurobn)
603
-10 -16 -18 -16 -06
537
Dec17 DiscOperations
SeasonalAgri Loan
Sales Write-offs H1Net delta
Jun18
155 +17
-13 -16
+03
-04
144
Dec17 IFRS9[loans]
Sales Write-offs Costof risk
Other Jun18
427
-16 -06
+04 +10 +02 421
Dec17 DiscOperations
SeasonalAgri Loan
StateDeposits
HouseholdDeposits
BusinessDeposits
Jun18
674
-46-16 -05 -14 -20 -05
568
Dec17 Disc Ops SeasonalAgri Loan
Sales EFSFBonds
IFRS9FTA
H1Net delta
Jun18
Note in assets movement discontinued operations delta includes Avis Serbia Romania Albania Bulgaria and the 2 NPE sales portfolios In the other items this elementincludes Bulgaria and Albania which were classified as discontinued during H118
+euro10bn
Q118 -euro04bnQ218 -euro02bn
11
18 GROUP OPERATIONAL PERFORMANCE01
| EXECUTIVE SUMMARY
Group (1) euromn Q118 Q218 qoq
Net Revenues | recurring 450 484 8
Operating Expenses | recurring (244) (261) 7
Pre Provision Income | recurring 206 224 8
Loan Impairment (163) (149) -9
Other Items (2) (17) (31) -
Non Recurring Items (3) (142) 7
Pre Tax Result -115 51 -
Net Results Attrib to SHs -79 24 -
Net Result from Discrsquod Ops Attrib to SHs (4) (3) (309)
246bps NIMover assets in Q2
54 CIdown qoq
53bps NFI over assets in Q2
151bps CoRin Q2
Note assets adjusted for discontinued and held for sale operations (1) PampL figures illustrated exclude the Grouprsquos discontinued operations
(2) Other Items line includes associatesrsquo income amp other impairments
(3) Non Recurring Items include
for Q118 euro142mn VES and staff costs related to FTEs who left the Bank in H1 [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro4mn staff costs [reported in OpEx] reversal of loan impairment ofeuro67mn from the sale of 2 NPE portfolios [reported in loan impairment] and euro32mn loss [reported in other impairment]
(4) Discontinued operations posted a loss of euro3127 million in H118 This figure incorporates a negative amount of euro139mnof FX reserves from Romania and Serbia with no effect in equity capital as it had affected it in the past
H118 -4 yoy
12
19 GROUP PampL DYNAMICS01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)
bull Resiliency of NII on the back of
o new loan generation priced higher than legacy book (Q218 477 vs 352) along with increasing loan generation
o deposit costs are also trending lower (Q218 044 vs 046 in Q1)
o covered bonds eligibility for ECB funding
bull NFI contribution expected stronger in H218 on the back of bancassurance revenues cards business farmers business etc
bull 16 key initiatives to reduce cost base in Greece gteuro200mn in 2018-2020 (actions of euro86mn already taken) FY18 c-6 yoy est
0508
00
10
20
30
40
Q118 Q218 FY18
OpEx (euromn)Net Fee Income (euromn)
74 75
0
100
200
300
400
Q118 Q218 FY18
244 261
0
300
600
900
1200
Q118 Q218 FY18
Net Interest Income (euromn)
350349
0
500
1000
1500
Q118 Q218 FY18
~euro14bn
~euro035bn
~euro31bn
~euro104bn
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
20 22
-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
Q1
18
Q2
18
2018
2019
QoQ change YoY change
| EXECUTIVE SUMMARY
01
5
12 OUTLOOK FOR THE GREEK ECONOMY
Sources ELSTAT BoG Bloomberg Piraeus Bank Economic Research
Real GDP Returns to Growth Trajectory (2017 +14 H118 +22)
Unemployment Rate Fallen Significantly (2017 215) Economic Sentiment Indicator (ESI) amp Manufacturing PMI Point to Improving GDP Dynamics
30
35
40
45
50
55
60
Q2
04
Q2
05
Q2
06
Q2
07
Q2
08
Q2
09
Q2
10
Q2
11
Q2
12
Q2
13
Q2
14
Q2
15
Q2
16
Q2
17
Q2
18
75
80
85
90
95
100
105
110
115
Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis)
190169
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
2016 euro56bn
2017 euro60bn
10
20
30
40
50
60
70
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Exports of goods and services
Long term average
Exports Improve Notably
2018-2019
outlook
05
01
| EXECUTIVE SUMMARY
01
6
13 PIRAEUS BANK RECENT DEVELOPMENTS
Concluding Restructuring Plan commitments bull Agreement for the sale of Tirana Bank (capital accretive transaction)bull Binding offers for Piraeus Bank Bulgaria received
NPE sales bull Arctos amp Amoeba transactions agreed in H118bull 2 new NPE sales in H218 and H119 in the
pipeline Project Iris regarding consumer small business loans and Project Nemo regarding shipping loans
Project Solarthe 4 Greek systemic Banks entered into an agreement with doBank SpA for the management of SME NPE common borrowers (euro18bn)
1st e-loan in Greece (personal loan 17k applications since Jun18)
No impact from the ECB waiver upliftthrough the use of Greek assets as
collateral in interbank repo market
ELA funding zeroedas of mid July 2018
Rating upgradesbull DBRS assigned Investment
Grade (BBB low) rating to
Piraeus Bankrsquos Global
Covered Bonds (CB) As a
result euro4bn of retained CBs
are eligible for ECB
refinancing
bull SampP upgraded 2 Piraeus
Bank Structured Finance
Notes (RMBS) to IG (BBB-)
02 03 04
06
07
| EXECUTIVE SUMMARY
01
7
14 GROUP FINANCIAL HIGHLIGHTS
Results Liquidity NPEs Core Bank
euro24mn SHs net profit in Q2 from euro15mn(1) in Q1
92 LDR in Greece
-euro35bnNPE in H1
euro206mn net profit in H1
bull NIM of 246 in H1
bull OpEx down 4 yoy in H1
bull CoR 158 in H1
bull Deposits in Greece +euro1bn in H1
bull Repos ceuro4bn (Αug18)
bull Covered Bonds BBB(low) rating
bull Sales euro17bn in Q2
bull Decreasing NPE inflows
bull Increased restructurings
bull NIM of 306
bull NFI of 073
bull RoA at 11
(1) excluding euro132mn VES cost on a post-tax basis both euro24mn and euro15mn exclude result from discontinued operations
| EXECUTIVE SUMMARY
01
8
15 PIRAEUS BANK TURN-AROUND
bull euro35bn provisions in the past 3qrsquos accelerated NPE clean-up process with euro44bn NPE decrease in the past 3qrsquos
bull Supervisory reviews including CFR performed on euro135bn loans and collective provisions review on euro392bn loans
bull Management actions address supervisory expectations and input from the reviews post conclusion of capital plan
bull RWA size for Piraeus Legacy Unit at euro194bn contracting by euro18bn qoq -euro47bn yoy
bull DG Comp Restructuring Plan is near completion with Albanian and Bulgarian business classified as discontinued
bull Strong growth for Piraeus Core Bank with net recurring profit of euro206mn in H118
bull Increasing new loan generation to euro31bn in 2018 from euro27bn in 2017
bull RWA size at euro295bn +euro05bn qoq +euro1bn yoy
bull Cost optimization with ceuro200mn cumulative cost savings for 2018-2020 period
bull Customer base at 52mn with cross selling ratio to 346x compared to 333x a year ago first e-loan in the Greek market
Clean-up
Business model
Piraeus Legacy Unit (PLU)
Piraeus Core Bank
Note CFR Credit File Review
9
16 GROUP BALANCE SHEET01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Jun18
Assets (1) 674 568
Gross Loans (2) 603 537
Net Loans (2) 447 394
Loan Loss Reserves (2 3) 155 144
Customer Deposits (2) 427 421
Eurosystem Funding 97 18
92 LDR-Greeceenhanced liquidity profile
ELA eliminated in mid-July 2018
27LLRs over loans
euro31bnnew loan generation
budgeted for 2018
(H1 on track)
(1) Assets of Jun18 vs Dec17 exclude completed sales (Avis Serbia Romania) αswell as planned divestments (Albania Bulgaria agreed NPE sales)
(2) Gross loans net loans loan loss reserves and customer deposits of Jun18 excludeoperations in Bulgaria and Albania which as of Q218 were classified asdiscontinued
(3) Loan loss reserves as of 01012018 amounted to euro171bn incl IFRS9 FTA impact
10
17 SELECTED GROUP BALANCE SHEET ITEMS DEVELOPMENT01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn)
Gross Loans (eurobn)
Deposits (eurobn)
603
-10 -16 -18 -16 -06
537
Dec17 DiscOperations
SeasonalAgri Loan
Sales Write-offs H1Net delta
Jun18
155 +17
-13 -16
+03
-04
144
Dec17 IFRS9[loans]
Sales Write-offs Costof risk
Other Jun18
427
-16 -06
+04 +10 +02 421
Dec17 DiscOperations
SeasonalAgri Loan
StateDeposits
HouseholdDeposits
BusinessDeposits
Jun18
674
-46-16 -05 -14 -20 -05
568
Dec17 Disc Ops SeasonalAgri Loan
Sales EFSFBonds
IFRS9FTA
H1Net delta
Jun18
Note in assets movement discontinued operations delta includes Avis Serbia Romania Albania Bulgaria and the 2 NPE sales portfolios In the other items this elementincludes Bulgaria and Albania which were classified as discontinued during H118
+euro10bn
Q118 -euro04bnQ218 -euro02bn
11
18 GROUP OPERATIONAL PERFORMANCE01
| EXECUTIVE SUMMARY
Group (1) euromn Q118 Q218 qoq
Net Revenues | recurring 450 484 8
Operating Expenses | recurring (244) (261) 7
Pre Provision Income | recurring 206 224 8
Loan Impairment (163) (149) -9
Other Items (2) (17) (31) -
Non Recurring Items (3) (142) 7
Pre Tax Result -115 51 -
Net Results Attrib to SHs -79 24 -
Net Result from Discrsquod Ops Attrib to SHs (4) (3) (309)
246bps NIMover assets in Q2
54 CIdown qoq
53bps NFI over assets in Q2
151bps CoRin Q2
Note assets adjusted for discontinued and held for sale operations (1) PampL figures illustrated exclude the Grouprsquos discontinued operations
(2) Other Items line includes associatesrsquo income amp other impairments
(3) Non Recurring Items include
for Q118 euro142mn VES and staff costs related to FTEs who left the Bank in H1 [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro4mn staff costs [reported in OpEx] reversal of loan impairment ofeuro67mn from the sale of 2 NPE portfolios [reported in loan impairment] and euro32mn loss [reported in other impairment]
(4) Discontinued operations posted a loss of euro3127 million in H118 This figure incorporates a negative amount of euro139mnof FX reserves from Romania and Serbia with no effect in equity capital as it had affected it in the past
H118 -4 yoy
12
19 GROUP PampL DYNAMICS01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)
bull Resiliency of NII on the back of
o new loan generation priced higher than legacy book (Q218 477 vs 352) along with increasing loan generation
o deposit costs are also trending lower (Q218 044 vs 046 in Q1)
o covered bonds eligibility for ECB funding
bull NFI contribution expected stronger in H218 on the back of bancassurance revenues cards business farmers business etc
bull 16 key initiatives to reduce cost base in Greece gteuro200mn in 2018-2020 (actions of euro86mn already taken) FY18 c-6 yoy est
0508
00
10
20
30
40
Q118 Q218 FY18
OpEx (euromn)Net Fee Income (euromn)
74 75
0
100
200
300
400
Q118 Q218 FY18
244 261
0
300
600
900
1200
Q118 Q218 FY18
Net Interest Income (euromn)
350349
0
500
1000
1500
Q118 Q218 FY18
~euro14bn
~euro035bn
~euro31bn
~euro104bn
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
05
01
| EXECUTIVE SUMMARY
01
6
13 PIRAEUS BANK RECENT DEVELOPMENTS
Concluding Restructuring Plan commitments bull Agreement for the sale of Tirana Bank (capital accretive transaction)bull Binding offers for Piraeus Bank Bulgaria received
NPE sales bull Arctos amp Amoeba transactions agreed in H118bull 2 new NPE sales in H218 and H119 in the
pipeline Project Iris regarding consumer small business loans and Project Nemo regarding shipping loans
Project Solarthe 4 Greek systemic Banks entered into an agreement with doBank SpA for the management of SME NPE common borrowers (euro18bn)
1st e-loan in Greece (personal loan 17k applications since Jun18)
No impact from the ECB waiver upliftthrough the use of Greek assets as
collateral in interbank repo market
ELA funding zeroedas of mid July 2018
Rating upgradesbull DBRS assigned Investment
Grade (BBB low) rating to
Piraeus Bankrsquos Global
Covered Bonds (CB) As a
result euro4bn of retained CBs
are eligible for ECB
refinancing
bull SampP upgraded 2 Piraeus
Bank Structured Finance
Notes (RMBS) to IG (BBB-)
02 03 04
06
07
| EXECUTIVE SUMMARY
01
7
14 GROUP FINANCIAL HIGHLIGHTS
Results Liquidity NPEs Core Bank
euro24mn SHs net profit in Q2 from euro15mn(1) in Q1
92 LDR in Greece
-euro35bnNPE in H1
euro206mn net profit in H1
bull NIM of 246 in H1
bull OpEx down 4 yoy in H1
bull CoR 158 in H1
bull Deposits in Greece +euro1bn in H1
bull Repos ceuro4bn (Αug18)
bull Covered Bonds BBB(low) rating
bull Sales euro17bn in Q2
bull Decreasing NPE inflows
bull Increased restructurings
bull NIM of 306
bull NFI of 073
bull RoA at 11
(1) excluding euro132mn VES cost on a post-tax basis both euro24mn and euro15mn exclude result from discontinued operations
| EXECUTIVE SUMMARY
01
8
15 PIRAEUS BANK TURN-AROUND
bull euro35bn provisions in the past 3qrsquos accelerated NPE clean-up process with euro44bn NPE decrease in the past 3qrsquos
bull Supervisory reviews including CFR performed on euro135bn loans and collective provisions review on euro392bn loans
bull Management actions address supervisory expectations and input from the reviews post conclusion of capital plan
bull RWA size for Piraeus Legacy Unit at euro194bn contracting by euro18bn qoq -euro47bn yoy
bull DG Comp Restructuring Plan is near completion with Albanian and Bulgarian business classified as discontinued
bull Strong growth for Piraeus Core Bank with net recurring profit of euro206mn in H118
bull Increasing new loan generation to euro31bn in 2018 from euro27bn in 2017
bull RWA size at euro295bn +euro05bn qoq +euro1bn yoy
bull Cost optimization with ceuro200mn cumulative cost savings for 2018-2020 period
bull Customer base at 52mn with cross selling ratio to 346x compared to 333x a year ago first e-loan in the Greek market
Clean-up
Business model
Piraeus Legacy Unit (PLU)
Piraeus Core Bank
Note CFR Credit File Review
9
16 GROUP BALANCE SHEET01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Jun18
Assets (1) 674 568
Gross Loans (2) 603 537
Net Loans (2) 447 394
Loan Loss Reserves (2 3) 155 144
Customer Deposits (2) 427 421
Eurosystem Funding 97 18
92 LDR-Greeceenhanced liquidity profile
ELA eliminated in mid-July 2018
27LLRs over loans
euro31bnnew loan generation
budgeted for 2018
(H1 on track)
(1) Assets of Jun18 vs Dec17 exclude completed sales (Avis Serbia Romania) αswell as planned divestments (Albania Bulgaria agreed NPE sales)
(2) Gross loans net loans loan loss reserves and customer deposits of Jun18 excludeoperations in Bulgaria and Albania which as of Q218 were classified asdiscontinued
(3) Loan loss reserves as of 01012018 amounted to euro171bn incl IFRS9 FTA impact
10
17 SELECTED GROUP BALANCE SHEET ITEMS DEVELOPMENT01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn)
Gross Loans (eurobn)
Deposits (eurobn)
603
-10 -16 -18 -16 -06
537
Dec17 DiscOperations
SeasonalAgri Loan
Sales Write-offs H1Net delta
Jun18
155 +17
-13 -16
+03
-04
144
Dec17 IFRS9[loans]
Sales Write-offs Costof risk
Other Jun18
427
-16 -06
+04 +10 +02 421
Dec17 DiscOperations
SeasonalAgri Loan
StateDeposits
HouseholdDeposits
BusinessDeposits
Jun18
674
-46-16 -05 -14 -20 -05
568
Dec17 Disc Ops SeasonalAgri Loan
Sales EFSFBonds
IFRS9FTA
H1Net delta
Jun18
Note in assets movement discontinued operations delta includes Avis Serbia Romania Albania Bulgaria and the 2 NPE sales portfolios In the other items this elementincludes Bulgaria and Albania which were classified as discontinued during H118
+euro10bn
Q118 -euro04bnQ218 -euro02bn
11
18 GROUP OPERATIONAL PERFORMANCE01
| EXECUTIVE SUMMARY
Group (1) euromn Q118 Q218 qoq
Net Revenues | recurring 450 484 8
Operating Expenses | recurring (244) (261) 7
Pre Provision Income | recurring 206 224 8
Loan Impairment (163) (149) -9
Other Items (2) (17) (31) -
Non Recurring Items (3) (142) 7
Pre Tax Result -115 51 -
Net Results Attrib to SHs -79 24 -
Net Result from Discrsquod Ops Attrib to SHs (4) (3) (309)
246bps NIMover assets in Q2
54 CIdown qoq
53bps NFI over assets in Q2
151bps CoRin Q2
Note assets adjusted for discontinued and held for sale operations (1) PampL figures illustrated exclude the Grouprsquos discontinued operations
(2) Other Items line includes associatesrsquo income amp other impairments
(3) Non Recurring Items include
for Q118 euro142mn VES and staff costs related to FTEs who left the Bank in H1 [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro4mn staff costs [reported in OpEx] reversal of loan impairment ofeuro67mn from the sale of 2 NPE portfolios [reported in loan impairment] and euro32mn loss [reported in other impairment]
(4) Discontinued operations posted a loss of euro3127 million in H118 This figure incorporates a negative amount of euro139mnof FX reserves from Romania and Serbia with no effect in equity capital as it had affected it in the past
H118 -4 yoy
12
19 GROUP PampL DYNAMICS01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)
bull Resiliency of NII on the back of
o new loan generation priced higher than legacy book (Q218 477 vs 352) along with increasing loan generation
o deposit costs are also trending lower (Q218 044 vs 046 in Q1)
o covered bonds eligibility for ECB funding
bull NFI contribution expected stronger in H218 on the back of bancassurance revenues cards business farmers business etc
bull 16 key initiatives to reduce cost base in Greece gteuro200mn in 2018-2020 (actions of euro86mn already taken) FY18 c-6 yoy est
0508
00
10
20
30
40
Q118 Q218 FY18
OpEx (euromn)Net Fee Income (euromn)
74 75
0
100
200
300
400
Q118 Q218 FY18
244 261
0
300
600
900
1200
Q118 Q218 FY18
Net Interest Income (euromn)
350349
0
500
1000
1500
Q118 Q218 FY18
~euro14bn
~euro035bn
~euro31bn
~euro104bn
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
| EXECUTIVE SUMMARY
01
7
14 GROUP FINANCIAL HIGHLIGHTS
Results Liquidity NPEs Core Bank
euro24mn SHs net profit in Q2 from euro15mn(1) in Q1
92 LDR in Greece
-euro35bnNPE in H1
euro206mn net profit in H1
bull NIM of 246 in H1
bull OpEx down 4 yoy in H1
bull CoR 158 in H1
bull Deposits in Greece +euro1bn in H1
bull Repos ceuro4bn (Αug18)
bull Covered Bonds BBB(low) rating
bull Sales euro17bn in Q2
bull Decreasing NPE inflows
bull Increased restructurings
bull NIM of 306
bull NFI of 073
bull RoA at 11
(1) excluding euro132mn VES cost on a post-tax basis both euro24mn and euro15mn exclude result from discontinued operations
| EXECUTIVE SUMMARY
01
8
15 PIRAEUS BANK TURN-AROUND
bull euro35bn provisions in the past 3qrsquos accelerated NPE clean-up process with euro44bn NPE decrease in the past 3qrsquos
bull Supervisory reviews including CFR performed on euro135bn loans and collective provisions review on euro392bn loans
bull Management actions address supervisory expectations and input from the reviews post conclusion of capital plan
bull RWA size for Piraeus Legacy Unit at euro194bn contracting by euro18bn qoq -euro47bn yoy
bull DG Comp Restructuring Plan is near completion with Albanian and Bulgarian business classified as discontinued
bull Strong growth for Piraeus Core Bank with net recurring profit of euro206mn in H118
bull Increasing new loan generation to euro31bn in 2018 from euro27bn in 2017
bull RWA size at euro295bn +euro05bn qoq +euro1bn yoy
bull Cost optimization with ceuro200mn cumulative cost savings for 2018-2020 period
bull Customer base at 52mn with cross selling ratio to 346x compared to 333x a year ago first e-loan in the Greek market
Clean-up
Business model
Piraeus Legacy Unit (PLU)
Piraeus Core Bank
Note CFR Credit File Review
9
16 GROUP BALANCE SHEET01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Jun18
Assets (1) 674 568
Gross Loans (2) 603 537
Net Loans (2) 447 394
Loan Loss Reserves (2 3) 155 144
Customer Deposits (2) 427 421
Eurosystem Funding 97 18
92 LDR-Greeceenhanced liquidity profile
ELA eliminated in mid-July 2018
27LLRs over loans
euro31bnnew loan generation
budgeted for 2018
(H1 on track)
(1) Assets of Jun18 vs Dec17 exclude completed sales (Avis Serbia Romania) αswell as planned divestments (Albania Bulgaria agreed NPE sales)
(2) Gross loans net loans loan loss reserves and customer deposits of Jun18 excludeoperations in Bulgaria and Albania which as of Q218 were classified asdiscontinued
(3) Loan loss reserves as of 01012018 amounted to euro171bn incl IFRS9 FTA impact
10
17 SELECTED GROUP BALANCE SHEET ITEMS DEVELOPMENT01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn)
Gross Loans (eurobn)
Deposits (eurobn)
603
-10 -16 -18 -16 -06
537
Dec17 DiscOperations
SeasonalAgri Loan
Sales Write-offs H1Net delta
Jun18
155 +17
-13 -16
+03
-04
144
Dec17 IFRS9[loans]
Sales Write-offs Costof risk
Other Jun18
427
-16 -06
+04 +10 +02 421
Dec17 DiscOperations
SeasonalAgri Loan
StateDeposits
HouseholdDeposits
BusinessDeposits
Jun18
674
-46-16 -05 -14 -20 -05
568
Dec17 Disc Ops SeasonalAgri Loan
Sales EFSFBonds
IFRS9FTA
H1Net delta
Jun18
Note in assets movement discontinued operations delta includes Avis Serbia Romania Albania Bulgaria and the 2 NPE sales portfolios In the other items this elementincludes Bulgaria and Albania which were classified as discontinued during H118
+euro10bn
Q118 -euro04bnQ218 -euro02bn
11
18 GROUP OPERATIONAL PERFORMANCE01
| EXECUTIVE SUMMARY
Group (1) euromn Q118 Q218 qoq
Net Revenues | recurring 450 484 8
Operating Expenses | recurring (244) (261) 7
Pre Provision Income | recurring 206 224 8
Loan Impairment (163) (149) -9
Other Items (2) (17) (31) -
Non Recurring Items (3) (142) 7
Pre Tax Result -115 51 -
Net Results Attrib to SHs -79 24 -
Net Result from Discrsquod Ops Attrib to SHs (4) (3) (309)
246bps NIMover assets in Q2
54 CIdown qoq
53bps NFI over assets in Q2
151bps CoRin Q2
Note assets adjusted for discontinued and held for sale operations (1) PampL figures illustrated exclude the Grouprsquos discontinued operations
(2) Other Items line includes associatesrsquo income amp other impairments
(3) Non Recurring Items include
for Q118 euro142mn VES and staff costs related to FTEs who left the Bank in H1 [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro4mn staff costs [reported in OpEx] reversal of loan impairment ofeuro67mn from the sale of 2 NPE portfolios [reported in loan impairment] and euro32mn loss [reported in other impairment]
(4) Discontinued operations posted a loss of euro3127 million in H118 This figure incorporates a negative amount of euro139mnof FX reserves from Romania and Serbia with no effect in equity capital as it had affected it in the past
H118 -4 yoy
12
19 GROUP PampL DYNAMICS01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)
bull Resiliency of NII on the back of
o new loan generation priced higher than legacy book (Q218 477 vs 352) along with increasing loan generation
o deposit costs are also trending lower (Q218 044 vs 046 in Q1)
o covered bonds eligibility for ECB funding
bull NFI contribution expected stronger in H218 on the back of bancassurance revenues cards business farmers business etc
bull 16 key initiatives to reduce cost base in Greece gteuro200mn in 2018-2020 (actions of euro86mn already taken) FY18 c-6 yoy est
0508
00
10
20
30
40
Q118 Q218 FY18
OpEx (euromn)Net Fee Income (euromn)
74 75
0
100
200
300
400
Q118 Q218 FY18
244 261
0
300
600
900
1200
Q118 Q218 FY18
Net Interest Income (euromn)
350349
0
500
1000
1500
Q118 Q218 FY18
~euro14bn
~euro035bn
~euro31bn
~euro104bn
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
| EXECUTIVE SUMMARY
01
8
15 PIRAEUS BANK TURN-AROUND
bull euro35bn provisions in the past 3qrsquos accelerated NPE clean-up process with euro44bn NPE decrease in the past 3qrsquos
bull Supervisory reviews including CFR performed on euro135bn loans and collective provisions review on euro392bn loans
bull Management actions address supervisory expectations and input from the reviews post conclusion of capital plan
bull RWA size for Piraeus Legacy Unit at euro194bn contracting by euro18bn qoq -euro47bn yoy
bull DG Comp Restructuring Plan is near completion with Albanian and Bulgarian business classified as discontinued
bull Strong growth for Piraeus Core Bank with net recurring profit of euro206mn in H118
bull Increasing new loan generation to euro31bn in 2018 from euro27bn in 2017
bull RWA size at euro295bn +euro05bn qoq +euro1bn yoy
bull Cost optimization with ceuro200mn cumulative cost savings for 2018-2020 period
bull Customer base at 52mn with cross selling ratio to 346x compared to 333x a year ago first e-loan in the Greek market
Clean-up
Business model
Piraeus Legacy Unit (PLU)
Piraeus Core Bank
Note CFR Credit File Review
9
16 GROUP BALANCE SHEET01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Jun18
Assets (1) 674 568
Gross Loans (2) 603 537
Net Loans (2) 447 394
Loan Loss Reserves (2 3) 155 144
Customer Deposits (2) 427 421
Eurosystem Funding 97 18
92 LDR-Greeceenhanced liquidity profile
ELA eliminated in mid-July 2018
27LLRs over loans
euro31bnnew loan generation
budgeted for 2018
(H1 on track)
(1) Assets of Jun18 vs Dec17 exclude completed sales (Avis Serbia Romania) αswell as planned divestments (Albania Bulgaria agreed NPE sales)
(2) Gross loans net loans loan loss reserves and customer deposits of Jun18 excludeoperations in Bulgaria and Albania which as of Q218 were classified asdiscontinued
(3) Loan loss reserves as of 01012018 amounted to euro171bn incl IFRS9 FTA impact
10
17 SELECTED GROUP BALANCE SHEET ITEMS DEVELOPMENT01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn)
Gross Loans (eurobn)
Deposits (eurobn)
603
-10 -16 -18 -16 -06
537
Dec17 DiscOperations
SeasonalAgri Loan
Sales Write-offs H1Net delta
Jun18
155 +17
-13 -16
+03
-04
144
Dec17 IFRS9[loans]
Sales Write-offs Costof risk
Other Jun18
427
-16 -06
+04 +10 +02 421
Dec17 DiscOperations
SeasonalAgri Loan
StateDeposits
HouseholdDeposits
BusinessDeposits
Jun18
674
-46-16 -05 -14 -20 -05
568
Dec17 Disc Ops SeasonalAgri Loan
Sales EFSFBonds
IFRS9FTA
H1Net delta
Jun18
Note in assets movement discontinued operations delta includes Avis Serbia Romania Albania Bulgaria and the 2 NPE sales portfolios In the other items this elementincludes Bulgaria and Albania which were classified as discontinued during H118
+euro10bn
Q118 -euro04bnQ218 -euro02bn
11
18 GROUP OPERATIONAL PERFORMANCE01
| EXECUTIVE SUMMARY
Group (1) euromn Q118 Q218 qoq
Net Revenues | recurring 450 484 8
Operating Expenses | recurring (244) (261) 7
Pre Provision Income | recurring 206 224 8
Loan Impairment (163) (149) -9
Other Items (2) (17) (31) -
Non Recurring Items (3) (142) 7
Pre Tax Result -115 51 -
Net Results Attrib to SHs -79 24 -
Net Result from Discrsquod Ops Attrib to SHs (4) (3) (309)
246bps NIMover assets in Q2
54 CIdown qoq
53bps NFI over assets in Q2
151bps CoRin Q2
Note assets adjusted for discontinued and held for sale operations (1) PampL figures illustrated exclude the Grouprsquos discontinued operations
(2) Other Items line includes associatesrsquo income amp other impairments
(3) Non Recurring Items include
for Q118 euro142mn VES and staff costs related to FTEs who left the Bank in H1 [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro4mn staff costs [reported in OpEx] reversal of loan impairment ofeuro67mn from the sale of 2 NPE portfolios [reported in loan impairment] and euro32mn loss [reported in other impairment]
(4) Discontinued operations posted a loss of euro3127 million in H118 This figure incorporates a negative amount of euro139mnof FX reserves from Romania and Serbia with no effect in equity capital as it had affected it in the past
H118 -4 yoy
12
19 GROUP PampL DYNAMICS01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)
bull Resiliency of NII on the back of
o new loan generation priced higher than legacy book (Q218 477 vs 352) along with increasing loan generation
o deposit costs are also trending lower (Q218 044 vs 046 in Q1)
o covered bonds eligibility for ECB funding
bull NFI contribution expected stronger in H218 on the back of bancassurance revenues cards business farmers business etc
bull 16 key initiatives to reduce cost base in Greece gteuro200mn in 2018-2020 (actions of euro86mn already taken) FY18 c-6 yoy est
0508
00
10
20
30
40
Q118 Q218 FY18
OpEx (euromn)Net Fee Income (euromn)
74 75
0
100
200
300
400
Q118 Q218 FY18
244 261
0
300
600
900
1200
Q118 Q218 FY18
Net Interest Income (euromn)
350349
0
500
1000
1500
Q118 Q218 FY18
~euro14bn
~euro035bn
~euro31bn
~euro104bn
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
9
16 GROUP BALANCE SHEET01
| EXECUTIVE SUMMARY
Group eurobn Dec17 Jun18
Assets (1) 674 568
Gross Loans (2) 603 537
Net Loans (2) 447 394
Loan Loss Reserves (2 3) 155 144
Customer Deposits (2) 427 421
Eurosystem Funding 97 18
92 LDR-Greeceenhanced liquidity profile
ELA eliminated in mid-July 2018
27LLRs over loans
euro31bnnew loan generation
budgeted for 2018
(H1 on track)
(1) Assets of Jun18 vs Dec17 exclude completed sales (Avis Serbia Romania) αswell as planned divestments (Albania Bulgaria agreed NPE sales)
(2) Gross loans net loans loan loss reserves and customer deposits of Jun18 excludeoperations in Bulgaria and Albania which as of Q218 were classified asdiscontinued
(3) Loan loss reserves as of 01012018 amounted to euro171bn incl IFRS9 FTA impact
10
17 SELECTED GROUP BALANCE SHEET ITEMS DEVELOPMENT01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn)
Gross Loans (eurobn)
Deposits (eurobn)
603
-10 -16 -18 -16 -06
537
Dec17 DiscOperations
SeasonalAgri Loan
Sales Write-offs H1Net delta
Jun18
155 +17
-13 -16
+03
-04
144
Dec17 IFRS9[loans]
Sales Write-offs Costof risk
Other Jun18
427
-16 -06
+04 +10 +02 421
Dec17 DiscOperations
SeasonalAgri Loan
StateDeposits
HouseholdDeposits
BusinessDeposits
Jun18
674
-46-16 -05 -14 -20 -05
568
Dec17 Disc Ops SeasonalAgri Loan
Sales EFSFBonds
IFRS9FTA
H1Net delta
Jun18
Note in assets movement discontinued operations delta includes Avis Serbia Romania Albania Bulgaria and the 2 NPE sales portfolios In the other items this elementincludes Bulgaria and Albania which were classified as discontinued during H118
+euro10bn
Q118 -euro04bnQ218 -euro02bn
11
18 GROUP OPERATIONAL PERFORMANCE01
| EXECUTIVE SUMMARY
Group (1) euromn Q118 Q218 qoq
Net Revenues | recurring 450 484 8
Operating Expenses | recurring (244) (261) 7
Pre Provision Income | recurring 206 224 8
Loan Impairment (163) (149) -9
Other Items (2) (17) (31) -
Non Recurring Items (3) (142) 7
Pre Tax Result -115 51 -
Net Results Attrib to SHs -79 24 -
Net Result from Discrsquod Ops Attrib to SHs (4) (3) (309)
246bps NIMover assets in Q2
54 CIdown qoq
53bps NFI over assets in Q2
151bps CoRin Q2
Note assets adjusted for discontinued and held for sale operations (1) PampL figures illustrated exclude the Grouprsquos discontinued operations
(2) Other Items line includes associatesrsquo income amp other impairments
(3) Non Recurring Items include
for Q118 euro142mn VES and staff costs related to FTEs who left the Bank in H1 [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro4mn staff costs [reported in OpEx] reversal of loan impairment ofeuro67mn from the sale of 2 NPE portfolios [reported in loan impairment] and euro32mn loss [reported in other impairment]
(4) Discontinued operations posted a loss of euro3127 million in H118 This figure incorporates a negative amount of euro139mnof FX reserves from Romania and Serbia with no effect in equity capital as it had affected it in the past
H118 -4 yoy
12
19 GROUP PampL DYNAMICS01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)
bull Resiliency of NII on the back of
o new loan generation priced higher than legacy book (Q218 477 vs 352) along with increasing loan generation
o deposit costs are also trending lower (Q218 044 vs 046 in Q1)
o covered bonds eligibility for ECB funding
bull NFI contribution expected stronger in H218 on the back of bancassurance revenues cards business farmers business etc
bull 16 key initiatives to reduce cost base in Greece gteuro200mn in 2018-2020 (actions of euro86mn already taken) FY18 c-6 yoy est
0508
00
10
20
30
40
Q118 Q218 FY18
OpEx (euromn)Net Fee Income (euromn)
74 75
0
100
200
300
400
Q118 Q218 FY18
244 261
0
300
600
900
1200
Q118 Q218 FY18
Net Interest Income (euromn)
350349
0
500
1000
1500
Q118 Q218 FY18
~euro14bn
~euro035bn
~euro31bn
~euro104bn
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
10
17 SELECTED GROUP BALANCE SHEET ITEMS DEVELOPMENT01
| EXECUTIVE SUMMARY
Assets (eurobn)
Loan Loss Reserves (eurobn)
Gross Loans (eurobn)
Deposits (eurobn)
603
-10 -16 -18 -16 -06
537
Dec17 DiscOperations
SeasonalAgri Loan
Sales Write-offs H1Net delta
Jun18
155 +17
-13 -16
+03
-04
144
Dec17 IFRS9[loans]
Sales Write-offs Costof risk
Other Jun18
427
-16 -06
+04 +10 +02 421
Dec17 DiscOperations
SeasonalAgri Loan
StateDeposits
HouseholdDeposits
BusinessDeposits
Jun18
674
-46-16 -05 -14 -20 -05
568
Dec17 Disc Ops SeasonalAgri Loan
Sales EFSFBonds
IFRS9FTA
H1Net delta
Jun18
Note in assets movement discontinued operations delta includes Avis Serbia Romania Albania Bulgaria and the 2 NPE sales portfolios In the other items this elementincludes Bulgaria and Albania which were classified as discontinued during H118
+euro10bn
Q118 -euro04bnQ218 -euro02bn
11
18 GROUP OPERATIONAL PERFORMANCE01
| EXECUTIVE SUMMARY
Group (1) euromn Q118 Q218 qoq
Net Revenues | recurring 450 484 8
Operating Expenses | recurring (244) (261) 7
Pre Provision Income | recurring 206 224 8
Loan Impairment (163) (149) -9
Other Items (2) (17) (31) -
Non Recurring Items (3) (142) 7
Pre Tax Result -115 51 -
Net Results Attrib to SHs -79 24 -
Net Result from Discrsquod Ops Attrib to SHs (4) (3) (309)
246bps NIMover assets in Q2
54 CIdown qoq
53bps NFI over assets in Q2
151bps CoRin Q2
Note assets adjusted for discontinued and held for sale operations (1) PampL figures illustrated exclude the Grouprsquos discontinued operations
(2) Other Items line includes associatesrsquo income amp other impairments
(3) Non Recurring Items include
for Q118 euro142mn VES and staff costs related to FTEs who left the Bank in H1 [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro4mn staff costs [reported in OpEx] reversal of loan impairment ofeuro67mn from the sale of 2 NPE portfolios [reported in loan impairment] and euro32mn loss [reported in other impairment]
(4) Discontinued operations posted a loss of euro3127 million in H118 This figure incorporates a negative amount of euro139mnof FX reserves from Romania and Serbia with no effect in equity capital as it had affected it in the past
H118 -4 yoy
12
19 GROUP PampL DYNAMICS01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)
bull Resiliency of NII on the back of
o new loan generation priced higher than legacy book (Q218 477 vs 352) along with increasing loan generation
o deposit costs are also trending lower (Q218 044 vs 046 in Q1)
o covered bonds eligibility for ECB funding
bull NFI contribution expected stronger in H218 on the back of bancassurance revenues cards business farmers business etc
bull 16 key initiatives to reduce cost base in Greece gteuro200mn in 2018-2020 (actions of euro86mn already taken) FY18 c-6 yoy est
0508
00
10
20
30
40
Q118 Q218 FY18
OpEx (euromn)Net Fee Income (euromn)
74 75
0
100
200
300
400
Q118 Q218 FY18
244 261
0
300
600
900
1200
Q118 Q218 FY18
Net Interest Income (euromn)
350349
0
500
1000
1500
Q118 Q218 FY18
~euro14bn
~euro035bn
~euro31bn
~euro104bn
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
11
18 GROUP OPERATIONAL PERFORMANCE01
| EXECUTIVE SUMMARY
Group (1) euromn Q118 Q218 qoq
Net Revenues | recurring 450 484 8
Operating Expenses | recurring (244) (261) 7
Pre Provision Income | recurring 206 224 8
Loan Impairment (163) (149) -9
Other Items (2) (17) (31) -
Non Recurring Items (3) (142) 7
Pre Tax Result -115 51 -
Net Results Attrib to SHs -79 24 -
Net Result from Discrsquod Ops Attrib to SHs (4) (3) (309)
246bps NIMover assets in Q2
54 CIdown qoq
53bps NFI over assets in Q2
151bps CoRin Q2
Note assets adjusted for discontinued and held for sale operations (1) PampL figures illustrated exclude the Grouprsquos discontinued operations
(2) Other Items line includes associatesrsquo income amp other impairments
(3) Non Recurring Items include
for Q118 euro142mn VES and staff costs related to FTEs who left the Bank in H1 [reported in OpEx]
for Q218 euro24mn loss [reported in other income] euro4mn staff costs [reported in OpEx] reversal of loan impairment ofeuro67mn from the sale of 2 NPE portfolios [reported in loan impairment] and euro32mn loss [reported in other impairment]
(4) Discontinued operations posted a loss of euro3127 million in H118 This figure incorporates a negative amount of euro139mnof FX reserves from Romania and Serbia with no effect in equity capital as it had affected it in the past
H118 -4 yoy
12
19 GROUP PampL DYNAMICS01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)
bull Resiliency of NII on the back of
o new loan generation priced higher than legacy book (Q218 477 vs 352) along with increasing loan generation
o deposit costs are also trending lower (Q218 044 vs 046 in Q1)
o covered bonds eligibility for ECB funding
bull NFI contribution expected stronger in H218 on the back of bancassurance revenues cards business farmers business etc
bull 16 key initiatives to reduce cost base in Greece gteuro200mn in 2018-2020 (actions of euro86mn already taken) FY18 c-6 yoy est
0508
00
10
20
30
40
Q118 Q218 FY18
OpEx (euromn)Net Fee Income (euromn)
74 75
0
100
200
300
400
Q118 Q218 FY18
244 261
0
300
600
900
1200
Q118 Q218 FY18
Net Interest Income (euromn)
350349
0
500
1000
1500
Q118 Q218 FY18
~euro14bn
~euro035bn
~euro31bn
~euro104bn
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
12
19 GROUP PampL DYNAMICS01
| EXECUTIVE SUMMARY
Loan Disbursements (eurobn)
bull Resiliency of NII on the back of
o new loan generation priced higher than legacy book (Q218 477 vs 352) along with increasing loan generation
o deposit costs are also trending lower (Q218 044 vs 046 in Q1)
o covered bonds eligibility for ECB funding
bull NFI contribution expected stronger in H218 on the back of bancassurance revenues cards business farmers business etc
bull 16 key initiatives to reduce cost base in Greece gteuro200mn in 2018-2020 (actions of euro86mn already taken) FY18 c-6 yoy est
0508
00
10
20
30
40
Q118 Q218 FY18
OpEx (euromn)Net Fee Income (euromn)
74 75
0
100
200
300
400
Q118 Q218 FY18
244 261
0
300
600
900
1200
Q118 Q218 FY18
Net Interest Income (euromn)
350349
0
500
1000
1500
Q118 Q218 FY18
~euro14bn
~euro035bn
~euro31bn
~euro104bn
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
377 358329 322
-24 -04
294
Sep15peak
Dec16 Dec17 Mar18 qoq discops Jun18
144
138 collateral
provisions
01
13
110 ASSET QUALITY TRACK RECORD
| EXECUTIVE SUMMARY
Group NPE Development (eurobn)
On track with 2018 NPEreduction target
-euro28bnQ218 ΝPE quarterly
reduction
euro51bnNPE reduction in the last 12 months
euro83bnNPE reduction from Sep15 peak
Coverage
96
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
14
111 NPE DEFAULTS TRENDING LOWER01
(11)(07) (09) (09) (09) (09) (09)
(03)(07)
(06)(05) (05) (02)
(05)(03)
(05)(02)
(17)
GeorgeHandjini
colaou(11)
(05)
(04)
07 04 05 05 05 04 03
04
04 04 03 04 04 04
Re-defaults
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 until
Dec2019
Q318 ndash Q419
Sales
Q317
euro320 euro314
Q417 Q118
euro308
| EXECUTIVE SUMMARY
euro283
Q218
clean up
Note adjustment relates with the automated application of lsquoUnlikely to Payrsquo criteria as per ECBrsquos 2017 NPE Guidance (impact of one-off nature)
04 adjustment
deep restructuring
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
01
15
112 NPL amp NPE OPERATIONAL TARGETS
| EXECUTIVE SUMMARY
252230 198 171
149104
89108
116112
109
99
Dec15a Dec16a Dec17a Jun18a Dec18f Dec19f
Piraeus aims to further reduce parent stock of
NPEs by euro8bn from Jun18 to Dec19
The reduction by 2019 will be driven by
bull restructuringsbull collectionsbull liquidations
bull debt forgivenessbull write-offsclean-upbull sales
Remaining effort will be achieved through
NPE
NPL
euro203bn
euro259bneuro283bn
198 248 200
00
-euro56bn-euro24bn
-203
Dec17 organic effort inorganic effort 2020restructurings curings
liquidations collections sales
euro314bneuro338bneuro341bn
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
16
113 NPE SALES IN THE PIPELINE01
| EXECUTIVE SUMMARY
Project Amoeba euro14bn gross book value bull Secured large SME and corporate loans
bull Sale agreed with Bain Capital Credit LP on 29
May 2018
Project Arctos euro04bn gross book value bull Unsecured personal loans amp credit cards
bull Sale agreed with APS Investments Capital sro
on 29 June 2018
Project Iris euro04bn gross book value bull Unsecured personal loans amp credit cards
small business loans leasing exposures
Project Nemo euro04bn gross book value bull Secured shipping loans
Η218 H119
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
| EXECUTIVE SUMMARY
01
17
114 REAL ESTATE PRICES WILL SUPPORT COST OF RISK NORMALISATION
Source BoG
Real Estate Prices Gradually Recovering
+05
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
H1
18
-15
-10
-5
0
5 House Price Index yoy
+37
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
-15
-10
-5
0
5 Office Price index yoy
Piraeus Bank in Greece has ceuro23bn of real
estate assets as underlying collateral for
loans οf which half for its PLU portfolio
Therefore the real estate price recovery will
gradually have a positive knock-off result in
provision cost for Piraeus Bank
Q218 +08 yoy
collateral capped at loan amount
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
18
115 IMPROVED LIQUIDITY01
| EXECUTIVE SUMMARY
222
119
5721
-18
000
167
03
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
Domestic Deposits (eurobn)
ELA Funding (eurobn)
351 361393 409 414 +05 419 +05
495
Dec14 Jun15 Dec15 Dec16 FY17 Mar18 Δ Q218 Jun18 lateAug18
bull Positive deposit movement in Q218 and Q318 (end Aug)
bull Consistent deposit inflows
bull Eurosystem funding decreased by euro43bn in Q218
bull Repos in Q218 with non-ECB eligible collateral at euro33bn
bull ELA use eliminated in 12 July 2018
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
Eurosystem Financing (eurobn)
14
33
37 38
Dec17 Jun18 Jul18 late Aug18
40
15 10 10
57
030 0
Dec17 Jun18 Jul18 late Aug18
ELA
ECB
19
116 PROGRESS ON FUNDING STATUS01
| EXECUTIVE SUMMARY
Interbank Repos (eurobn)
bull Normalising funding conditions reduce the need for Eurosystem funding
bull Zero ELA reliance since mid-July 2018
bull Early repayment of euro30bn TLTRO participation
bull euro40bn covered bonds receive Investment Grade Rating widening ECB eligible collateral
bull Interbank repo funding has more than doubled since the start of the year at a cost lower than ELA
bull Removal of waiver for Greek assets has been known fact for a long time impact absorbed
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
20
117 GROUP CAPITAL ADEQUACY RATIOS01
| EXECUTIVE SUMMARY
euro bn | Jun18 Jun18 Jun18 Jun18
CET-1 Capital 66 48 66 48
RWAs 488 469 474 454
CET-1 ratio 136 102 140 106
CET-1 Ratio
SREP Capital Requirement (TSCR)
bull Capital enhancement plan is currently being
executed to maintain capital ratios in excess of
SREP minimum requirements
bull IFRS9 FTA moved from euro16bn to euro20bn
bull Discontinued operations impact amp prudent
adjustment justify quarterly reduction in
CET1 capital
2018
Pillar 1 CET1 450
Pillar 2 Requirement (P2R) 375
AT1 150
T2 200
Total SREP Capital Requirement (TSCR) 1175
Conservation buffer (CB) 1875
Overall Capital Requirement (OCR) 13625
Note ratios adjusted for RWA relief from the sale of the 2 agreed NPE portfolios (Amoeba Arctos) and Albania Bulgaria divestment (euro16bn in total)
Phased-In Fully LoadedPhased-In Fully Loadedreported pro-forma
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
21
118 CAPITAL RATIOS DEVELOPMENTS01
| EXECUTIVE SUMMARY
70
-03 -01
66
Mar18 prudent adjustment disc ops impact Jun18
503
-05 -09 -05 -10
474
Mar18 qoq SerbiaRomania
AmoebaArctos
BulgariaAlbania
Jun18
Phased-In Capital (eurobn)
RWA (eurobn)
bull euro03bn reflects a prudent approach related to the IFRS9
FTA finalisation in H118
bull euro01bn negative impact attributed to the discontinued
operations concluding Restructuring Plan commitments
related to international operations divestments
RWA relief stemming from
bull NPE sales (Amoeba and Arctos) transactions and sale of Tirana Bank agreed actions with signed SPAs
bull Binding offers for Piraeus Bank Bulgaria received
pro forma adjustments
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
119 CAPITAL ENHANCEMENT PLAN UNDER WAY01
| EXECUTIVE SUMMARY22
Action Time StatusRWAsRelief
CET1 ratio Impact
A Sale of Assets | Completed
gtgt Avis [operating leasing company] Q118 ~euro02bn +6bps
gtgt Serbia [banking subsidiary] Q218 ~euro03bn +9bps
gtgt Romania [banking subsidiary] Q218 ~euro06bn +18bps
RWAs Impact | Sub-total ~euro12bn +33bps
B Sale of Assets | Signed SPAs
gtgt Amoeba [secured NPL portfolio] Q218 ~euro04bn +23bps
gtgt Arctos [unsecured NPL portfolio] Q218 ~euro01bn +5bps
gtgt Albania [banking subsidiary] Q318 ~euro04bn +2bps
RWAs Impact | Sub-total ~euro09bn +30bps
C Sale of Assets| Under Way
gtgt Bulgaria [banking subsidiary] Q418 ~euro06bn
gtgt Other actions Q418 ~euro10bn
Total ~euro37bn
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 plan
On top Piraeus is also exploring certain
alternatives in issuing non-dilutive
instruments
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
23
120 SEPARATE BUSINESS MODELS TO ENSURE VALUE CREATION01
| EXECUTIVE SUMMARY
Piraeus Bank
eurobn RWA ROA
Jun18 194 lt0
Mar18 212 lt0
Dec17 219 lt0
Sep17 237 lt0
Jun17 241 lt0
Mar17 252 lt0
Decisive Actions on Legacy IssuesEfficiency amp Risk-Adjusted Return
ldquoPiraeus Core Bankrdquo ldquoPiraeus Legacy Unitrdquo
eurobn RWA ROA
Jun18 295 11
Mar18 290 11
Dec17 286 11
Sep17 287 11
Jun17 286 11
Mar17 280 11
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
24
121 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT H11801
| EXECUTIVE SUMMARY
A PampL (euromn)
1 NII
2 NFI
3 Net revenues
4 Operating costs (ex VES cost)
5 PPI (ex VES cost)
6 Impairments
7 Net Income (ex VES cost)
B Ratios
8 NIM over assets
9 NFampCI over assets
10 Cost-to-income (ex VES cost)
11 Cost of risk (over net loans)
12 RoA (ex VES cost)
PLU includes RBU international operations REO holdings discontinued operations and non-core Greek subsidiariesSelected items are mentioned on recurring basis excluding VES employee cost and related costs of euro145mn booked in H118
PIRAEUS CORE BANK
578
137
781
(407)
374
(74)
206
306
073
52
068
11
PLU
122
11
129
(97)
31
(238)
(473)
128
012
76
270
lt0
PIRAEUS GROUP
699
149
910
(505)
406
(312)
(267)
246
052
55
158
lt0
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
25
122 PIRAEUS CORE BANK AND PIRAEUS LEGACY UNIT | 2020 TRAJECTORY01
| EXECUTIVE SUMMARY
f forecast
PLU
Jun18 2020f
19 13
19 13
13 10
01 01
76 92
lt0 lt0
PIRAEUS CORE BANK
Jun18 2020f
38 53
30 32
31 26
07 09
52 41
11 14
A Balance Sheet (eurobn)
1 Assets
2 RWAs
B PampL (ratios)
3 NIM over assets
4 NFampCI over assets
5 Cost-to-income
6 RoA
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
26
01
| EXECUTIVE SUMMARY
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
123 PIRAEUS BANKrsquoS STRATEGIC FOCUS
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
bull LDR at 94 Greece at 92
38
66
2522
394
1030
09
42
73
421
05331503
02
28
21 ASSETS amp LIABILITIES OVERVIEW
| FINANCIAL PERFORMANCE
Other
Cash
AssetMix
Total
Securities
Net Loans
Fixed assets
592
amounts in eurobn
Total
ECBELA
Interbank Repos
Deposits
Total Equity
Other
592
FundingMix
Jun18 Jun18
Debt Securities
bull Funding mix enhanced on the back oflower ELA reliance now zero improvedinterbank market access and increasingcustomer deposits
bull Interbank repo balances at cost lower thanELA
bull EFSF bonds dropped to zero as of Jan18 inthe context of short term measures for theHellenic Republicrsquos debt relief (euro168bn atthe peak)
bull Asset side comprises 66 by customerloans
() other includes ldquoother assetsrdquo (euro34bn) ldquogoodwill amp other intangible assetsrdquo (euro03bn) andldquoloans amp advances to customers mandatorily at FV through PampLrdquo (euro01bn)
Interbank loans
DTA
Discrsquod ops amp held for sale
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
29
22 GROUP BALANCE SHEET DE-RISKING AND LIQUIDITY IMPROVEMENT 02
| FINANCIAL PERFORMANCE
Group Balance Sheet (euromn)
Jun17 Mar18 Jun18 qoq yoy
CashBalances with Central Banks 3042 1524 864 -43 -73
Loans amp Advances to Banks 173 3532 1019 -71 -
Gross Loans 62048 57702 53749 -7 -13
(Loan Loss Reserves) (15685) (16344) (14368) -12 -8
Securities 12367 2882 2968 3 -76
- ow EFSF ΕSM Bonds 8504 0 0 - -
Intangibles amp Goodwill 277 305 295 -3 6
Fixed Assets 2088 2201 2204 0 6
Deferred Tax Assets 5329 6587 6559 0 23
Other Assets 3313 3388 3472 2 5
Assets of Discontinued Ops amp held for sale 966 1781 2461 38 -
Total Assets 73918 63559 59222 -7 -20
Due to Banks 21149 8846 5559 -37 -74
Deposits 40918 43151 42102 -2 3
Debt Securities 67 432 531 23 -
Other Liabilities 1584 1840 1840 0 16
Liabilities of Discontinued Ops 452 1446 1843 27 -
Total Liabilities 64170 55717 51875 -7 -19
Total Equity 9748 7842 7347 -6 -25
Total Liabilities amp Equity 73918 63559 59222 -7 -20
1
2
3
3
Eurosystem funding at euro18bn in Jun18 down euro140bn
yoy ΕFSF repos balance to zero in Nov17 other repos
with non ECB eligible collateral at euro38bn in late August
2018
1
2
Customer deposits on a like-for-like basis (excl Albania
and Bulgaria) increased by 1 qoq and 10 yoy
Q218 delta in gross loans reflects write-offs for clean-
up and deep restructurings (euro10bn) NPE sales (euro18bn)
and discontinued operations classification (euro10bn)
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
30
23 GROUP PampL HIGHLIGHTS STRONG PERFORMANCE IN COST CONTAINMENT ALONG WITH PROVISION NORMALIZATION02
| FINANCIAL PERFORMANCE
Group Profit amp Loss (euromn)
H118 recurring OpEx decreased by 4 yoy excluding the
extraordinary cost associated with 2018 VES Main driver
for this trend 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 administrative
costs decline
1
2
NII reduction in H118 by 16 yoy mainly attributed to
lower accruing balances post IFRS9 FTA and deleveraging
impact while in Q218 NII was flattish at euro349mn and NFI
was flattish at euro149mn in H118 with momentum for
H218
H118 loan impairment at euro312mn against euro522mn in
H117 following the substantial increase in coverage
levels in previous semester and the IFRS9 transition
3
4
Q118 Q218 qoq H117 H118 yoy
Net Interest Income 350 349 0 832 699 -16
Net Fee Income 74 75 0 149 149 0
Core Banking Income 425 424 0 982 848 -14
Trading Income 13 17 26 59 30 -50
Other Income 12 20 61 38 32 -15
Total Net Revenues 450 460 2 1078 910 -16
Total Net Revenues (recurring) 450 484 8 1012 934 -8
Employee Costs (259) (125) -52 (264) (384) 45
Employee Costs (recurring) (117) (122) 3 (264) (239) -10
Administrative Expenses (100) (114) 15 (215) (214) 0
Depreciation amp Other (27) (25) -7 (47) (52) 10
Total Operating Costs (386) (264) -31 (526) (650) 24
Total Operating Costs (recurring) (244) (261) 7 (526) (505) -4
Pre Provision Income 64 196 - 552 260 -53
Pre Provision Income (recurring) 206 224 8 486 430 -12
Result from Associates (8) (16) 89 (26) (24) -9
Impairment on Loans (163) (149) -9 (522) (312) -40
Impairment on Other Assets (8) 20 - (26) 12 -
Pre Tax Result (115) 51 - (22) (64) -
Tax 35 (29) - 23 6 -
Net Results Attrib to SHs (79) 24 - 3 (55) -
Minorities Attrib to SHs (1) (2) 26 (2) (3) -
Discontinued Ops Result (3) (310) - (78) (313) -
1
2
4
3
H118 Group recurring PPI decreased -12 yoy as the
progress on cost reduction and the resilient contribution
of the net fee and commission income line was more than
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 the Central Bank and inQ217 euro45mn were flagged as one-off stemming from the effect of the PICAR investment propertyfinance leaseobligation remeasurement In addition VES and other extraordinary staff costs of euro142mn and euro4mn wereclassified as one-off items in Q118 and Q218 respectively
5
A gain of euro67mn provision reversal from Arctos and
Amoeba portfolio sales is included in the other
impairment line
5
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
31
24 NET INTEREST INCOME IMPACTED BY INCREASED PROVISIONS02
| FINANCIAL PERFORMANCE
1
2
Interest income in Q218 remained flattish qoq
NIM expanding by 11bps at 246 in Q2 vs Q118
ELA cost to be eliminated as ELA zeroed in mid July while
positive impact is expected from covered bonds eligibility
for ECB use post their investment grade rating assignment
in late Aug18
H117 H118
Fixed Income Securities 52 29
Net Loans 1022 878
ow in Greece 990 851
Other Assets 54 47
Interest Income 1128 954
Customer Deposits 100 100
ow in Greece 99 100
Due to Banks 83 32
ow ELA 85 17
Other Liabilities amp Equity 113 122
Interest Expense 295 254
Net interest Income 832 700
NIM 1 274 246
1 on assets excluding discontinued operations and held for sale loans (Arctos amp Amoeba portfolios)
Net Interest Income Decomposition (euromn)amounts in euromn
3
832
-124 -20 +51 -39
H117 Impact fromHigher LoanProvisions
LoanDeleverage
Funding Other H118
700
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
02
32
25 DOMESTIC LOAN PORTFOLIO YIELDS FRONT BOOK PRICING AT HIGHER LEVELS
| FINANCIAL PERFORMANCE
Q416 Q117 Q217 Q317 Q417 Q118 Q218
Deposits 051 047 046 045 046 046 044
Sight 059 054 052 050 055 052 051
Savings 010 008 008 008 008 007 006
Time 086 082 081 078 076 075 073
avg 3m euribor
-031 -033 -033 -033 -033 -033 -033
Loans 391 388 381 371 364 360 352
Mortgages 227 222 219 218 217 215 212
Consumer 831 763 762 730 714 684 660
Business 419 423 412 401 392 390 381
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 stronger mainly from both corporate and SME segment
Loan Rates
Q218 Total Stock Front Book
Mortgages 21 31
Consumer 66 98
Business 38 46
Total 35 48
Loan Rates Front Book Rates Steadily Above Legacy Book
Q218
Business Loan Rates Total Stock Front Book
Corporate amp SME 35 45
SBL 58 65
Total 38 46
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
33
26 UPGRADED OPERATING EFFICIENCY02
16
1311
~09
bull ldquoProject Horizonrdquo 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
euro200mn initiatives in place
euro96mn actions taken amp will kick off
euro47mn admin costs relief
euro49mn staff costs relief
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
03A S S E T Q UA L I T Y
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
03
35
31 GROUP NPE amp NPL RATIOS ON TRACK
| ASSET QUALITY
Note NPE on balance sheet data
NPLs (euromn) Jun18
Business 10976
Mortgages 4565
Consumer 2258
TOTAL 17799
NPLs (euromn) Jun18
Greece 17091
International 708
TOTAL 17799
Group NPL Ratio per Product Category
Group NPL Mix
355 358
299
486
331 322 309
458
Total Business Mortgages Consumer
Mar18
Jun18
NPEs (euromn) Jun18
Business 20223
Mortgages 6316
Consumer 2848
TOTAL 29387
NPEs (euromn) Jun18
Greece 28508
International 879
TOTAL 29387
Group NPE Ratio per Product Category
Group NPE Mix
557611
415
578547
594
428
577
Total Business Mortgages Consumer
Mar18
Jun18
NPE mix 69 21 10 NPL mix 62 26 13
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
03
36
32 NPL amp NPE STOCK FALLING ACROSS MOST SEGMENTS [PARENT DATA]
| ASSET QUALITY
3828
Jun16 Jun18
46 46
Jun16 Jun18
244
171
Jun16 Jun18
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro00bn
33
23
Jun16 Jun18
165
103
Jun16 Jun18
342
283
Jun16 Jun18
62 63
Jun16 Jun18
242
191
Jun16 Jun18
-euro10bn
-euro72bn
-euro62bn
-euro60bn
+euro01bn-euro10bn
-euro51bn
Mortgages Consumer LoansBusiness Loans
-37-32
-04
-30
-17
-21 +1-25
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
03
37
33 SIZEABLE CURING POTENTIAL FROM FORBORNE LOANS UNDER PROBATION
| ASSET QUALITY
Note NPE on balance sheet data
(eurobn) 0 dpd 1-89dpd NPLs NPEs
Business 70 23 110 202
Mortgages 09 08 46 63
Consumer 04 02 23 28
TOTAL 83 33 178 294
NPEs per Bucket (Jun18)
49 51
31
736878
36
848195
42
91
Total Business Mortgages Consumer
NPE NPEgt0dpd NPL
Cash Coverage Ratio per Product and Status (Jun18)
Forborne Loans (Jun18 euro136bn)
NPEF 0dpd45
NPEF 1-30dpd8
NPEF 31-90dpd11
NPEF gt90dpd11
PF25
euro62bn forborne with 0dpd
NPΕ mix 28 11 61 100
[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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
38
34 DOMESTIC NPL amp NPE FORMATION IN Q21803
NPL Greece (euromn)
NPE Greece (euromn)
31026
-722 -488 -1706
+398 28508
Mar18 NPE formation WO clean-up Sales(NPE portion)
Adjustment Jun18
19673
-516 -488 -1579
17091
Mar18 NPL formation WO clean-up Sales(NPL portion)
Jun18
Formation NPLs in Greece
Q218 euromn
Mortgages +107
Consumer +19
Business -642
Total -516
Formation NPEs in Greece
Q218 euromn
Mortgages +56
Consumer -38
Business -740
Total -722
| ASSET QUALITY
Note total NPL wo euro704mn incl deep restructurings
Note total NPΕ wo euro1033mn incl deep restructurings
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
39
35 PRE WRITE-OFF FORMATION IN NEGATIVE TERRITORY IN Q21803
| ASSET QUALITY
-41 -33
-208
47
-187
-740
131
23 6
-120-53
56 19
-19
9
-47 -61 -38
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
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
-642
89
-12 -48 -32
58 10728
-43 -39 -47 -18
19
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
Q1
17
Q2
17
Q3
17
Q4
17
Q1
18
Q2
18
NPE formation was negative in business and consumer in Q218 with business having a significant negative movements of NPEs
formation while mortgages had a slightly positive formation
NPL formation remained negative for business while mortgages and consumer had a slightly positive formation
Business Mortgages Consumer
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
03
40 | ASSET QUALITY
36 SOLID COVERAGE IN ALL SEGMENTS
LLRs (euromn) Jun18LLR
Loans
Business 10375 305
Mortgages 1927 131
Consumer 2066 419
TOTAL 14368 267
LLRs (euromn) Jun18LLR
Loans
Greece 13896 264
International 472 419
TOTAL 14368 267
8089
44
94
81
95
42
91
Total Business Mortgages Consumer
Mar18 Jun18
NPE Coverage Ratio per Product NPL Coverage Ratio per Product
Group LLRs at 27 Over Loans
NPL mix 62 26 13
Total NPE coverage ratio at 94 for business portfolio including
collateral
Strong NPL coverage ratio at 95 for the business portfolio that
comprise 62 of total NPL stock
Cumulative provisions at 27 over Group gross loans
51 52
32
79
49 51
31
73
Total Business Mortgages Consumer
Mar18 Jun18
NPE mix 69 21 10
Note NPE on balance sheet data
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
9120
Cash coverage Collateral coverage
03
41
37 CASH COVERAGE AUGMENTED BY COLLATERAL
| ASSET QUALITY
95
40
Cash coverage Collateral coverage
Mortgage
Business
Consumer
51
43
Cash coverage Collateral coverage
7321
Cash coverage Collateral coverage
Mortgage
Business
Consumer
Total 135
Total 110
Total 112
Total 94
Total 101
Total 94
Total NPE
coverage at 96Total NPL
coverage at 125
31
70
Cash coverage Collateral coverage
42
68
Cash coverage Collateral coverage
pre-haircut tangible collateral (guarantees not included) capped at loan amount
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
03
42
38 LOAN PORTFOLIO DIVERSIFICATION
| ASSET QUALITY
25
17
28
34
41
36
37
58
70
69
105
109
91
279
Other service activities
Agriculture
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
Loans KPIs per Segment (Jun18) Domestic Loan Composition (Jun18 )
in euromn | TOTAL Business Mortgages Consumer
GROUP Loans 53749 34057 14757 4934
NPL Ratio 331 322 309 458
NPL Coverage 807 945 422 915
NPE Ratio 547 594 428 577
NPE Coverage 489 513 305 725
in euromn | TOTAL Business Mortgages Consumer
GREECE Loans 52623 33113 14700 4809
NPL Ratio 325 312 310 458
NPL Coverage 813 964 420 914
NPE Ratio 542 587 429 579
NPE Coverage 487 513 304 723
Retail 37
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
43
39 AUCTIONSrsquo PROGRESS03
41
54
5
completed
non completed
cancelled due to debtor request forrestructuring
Feb28 - Oct26 2018
2064 auctionsProperty auctions 2014 2015 2016 2017
201828 Feb - 26 Oct
auctions carried out by Piraeus 124 124 219 3962064
ow 851 completed
bull Measure for carrying out solely e-auctions of foreclosed property commenced in
28 Feb18 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 170118 ii) with new underwritingmortgageor pledged collateral
of 1st class and iii) this collateral is auctioned
| ASSET QUALITY
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
44
310 REO MANAGEMENT03
Piraeus REO holdings concentrated in Attica amp NorthGreece jointly making up ~50 of the portfolio
Current Status
bull ~56k properties accumulated mainly in the last yearsfrom acquisitions amp repossessions (22k residential 16k
commercial 04k industrial 14k plots)
bull Current market value of those properties euro10bn
bull In Η118 144 properties were sold and in 2017 148 vs
61 in 2016 22 in 2015 and just 10 in 2014
Actions
bull Run the Real Estate re-organisation project
bull Improve on the current strengths of Piraeus Real Estateand transform it in the marketing company for REO
utilising the newly introduced innovative platform forauctions in Greece wwwproperties4salegr
bull Enhance the capabilities of the Group with property and
facility management contracts
bull Create an RBU unit to reverse engineer both therestructuring and foreclosure processes with REO input
and strategy
North Greece
Thessaloniki
Central Greece
Peloponnisos
Islands
Attiki
Crete
Sterea
132
79
80
63
46
137
Commercial
Retail
Large assets gteuro5mn
200
(euromn)
343
1022
61
148 144
2014 2015 2016 2017 Η12018
Number of Properties Sold ()
| ASSET QUALITY
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
45
311 PIRAEUS REO ONLINE PLATFORM PROGRESS03Piraeus Bank was the 1st Bank to launch the innovative site wwwProperties4salegr achieving the sale of REO assets
through online amp publicly accessible auctions
1st Auction | 29 properties sold at 15 discount over market values
2nd Auction | 29 properties sold at 9 discount over market values
3rd Auction | 26 properties sold at 15 discount over market values
20
17
4th Auction | 33 properties sold at 5 discount over market values
TypeMarket Price
(euromn)Bid Price
(euromn)Delta
1st Auction 36 30 -15
2nd Auction 72 66 -9
3rd Auction 45 38 -15
4th Auction 40 38 -5
5th Auction 28 25 -13
Total 221 197 -11
gtgt Residential 1576 1414 -10
gtgt Commercial 578 494 -14
gtgt Land plots 061 058 -5
Online Auctions | Results to Date
2017 2018
1st Auction 2nd Auction 3rd Auction 4th Auction 5th Auction
27-28 Jun17 24-25 Oct17 13-14 Dec17 20-21 Mar18 20-21 Jun18
of properties 58 57 48 49 37
of registered users ~2900 ~5000 gt6000 gt8500 gt10000
of properties that received bids 39 (67) 41 (72) 35 (73) 37 (76) 24 (65)
of bids from total bidders 196 (80 bidders) 230 (86 bidders) 196 (74 bidders) 206 (73 bidders) 136 (71 bidders)
of the assets with approved bids 50 (29 properties) 51 (29 properties) 54 (26 properties) 67 (33 properties) 59 (22 properties)
of properties ldquoBuy Nowrdquo 939 1341 635 1337 424
20
18
Next Planned Auction | December
5th Auction | 22 properties sold at 13 discount over market values
| ASSET QUALITY
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
46
312 MORE THAN 45 OF PERSONAL BANKRUPTCY CASES ARE REJECTED IN COURT 03
Retail Loan Balances Under the Protection of L38692010 (bankruptcy law for individuals) - all classified as NPEs
Secured Loans UnsecuredTotal Secured amp
Unsecured
in euromn | June 2018 Total Mortgages Consumer Total
Total 2493 2331 162 888 3381
ow final court decision 765 728 37 298 1063
bull in favor of customer 412 393 19 140 552
bull in favor of the Bank 353 335 18 158 511
of court decisions in favor of Bank 46 46 48 53 48
Filings that are deemed by the court as eligible for protection can regulate their debts in line with their income and 3debt settlement plans are usually foreseen
bull monthly payments over 4 yearsbull monthly payments over 20 years towards the preservation of the owned primary residence if such exists
these are calculated based on 85 of such propertyrsquos commercial valuebull sale or exploitation of other real estate
48 of euro1063mn of cases that had been filed and were dealt by the courts have been rejected [data up to Jun2018]
Rejected cases of euro511mn [data up to Jun2018] will be repaid at par from the customer as the court decided that they have the ldquoabilityrdquo to repay the debt in full
| ASSET QUALITY
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
47
313 AMENDMENTS IN LEGAL FRAMEWORK WILL DRIVE FURTHER ACCELERATION OF NPENPL DELEVERAGE 03
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 ofthe commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agree toparticipate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The payment planshould comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and income lteuro21kPool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for all hisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primary residencewith an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts is considered byall participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategic defaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided that suchrestructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentation requiredand
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures by activists
Changes Introduced in 2018
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) newfinancing post 17012018 ii) with new underwritingmortgageor pledged collateral of 1st class and iii) this collateral is auctioned
bull Amendments in the L38692010 include among others i) the lift of the banking secrecy for individuals that are sheltered under the provisions of the law both new applications and thosealready made ii) automatic exemption from the provisions of the law in case of no compliance of the payments set by the courts (through temporary and final rulings)
| ASSET QUALITY
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
04L I Q U I D I T Y04L I Q U I D I T Y
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
04 41 GREEK MARKET LIQUIDITY GRADUALLY RESTORED
| LIQUIDITY49
40
60
80
100
120
140
2009 2011 2012 2013 2014 2015 2016 2018
0
20
40
60
80
100
120
140
160
2009 2011 2012 2013 2014 2015 2016 2018
ELA
ECB
Eurosystem at euro12bn in Sept18 (ELA euro4bn ECB euro9bn) -euro114bn vs Jun15 peak
Eurosystem Funding (eurobn)Deposits amp Βanknotes in Circulation (eurobn)
Banknotes at euro32bn in Sept18 -euro19bn vs Jun15 peak
euro4euro9
euro130
euro42
0
10
20
30
40
50
60
2009 2011 2012 2013 2014 2015 2016 2018
100
150
200
250
300 Deposits
Currency in Circulation
euro32
euro147
100
120
140
160
180
200
220
240
260
280
2009 2011 2012 2013 2014 2015 2016 2018
Deposits
Loans
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
LDR at 98 in Sept18 -40pp vs Jun15 peak
Deposits up euro9bn in Sept18 yoy Loans down euro10bn yoy in Sept18 ow euro7bn write-offs
euro176
euro132
98
Source Bank of Greece on top of write-offs the loan market has been impacted by ceuro2bn FX fluctuations and other adjustments yoy
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
50
42 DOMESTIC DEPOSITS PICKING UP
| LIQUIDITY
26 23
74 77
Jun18 Jun18
Business Retail
39 40
61 60
Jun18 Jun18
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 +05 419
Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217Δ Q317Δ Q417 Dec17 Δ Q118Δ Q218 Jun18
PiraeusFY17delta
Q118delta
Q218delta
Jun18balance
Mass|Farmers +05 -01 - 154
Affluent|Private Banking +07 +03 +02 142
SB +04 - +03 37
SME +01 - +01 12
Corporate +01 -04 +01 22
Govt amp Other -03 +08 -01 52
Total +16 +05 +05 419
04
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
04
51
43 EUROSYSTEM FUNDING UTILIZATION DROPS FURTHER
| LIQUIDITY
Dec14 Dec15 Dec16 Dec17 Mar18 Jun18 Late Aug
ECB 141 160 90 40 40 15 10
EFSF|ESM Bonds 57 153 73 15 - - 01
GGBs and T-bills 10 - 09 10 10 09 -
L3723 68 - - - - - -
Other 06 07 08 15 30 06 09
ELA - 167 119 57 21 03 -
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 119 57 21 03 -
Total 141 327 209 97 61 18 10
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 42 40 40
15
154
222212 167
161
144127
119
110 103
7857
2103
100
141
303
373 358
327304
268
238209
155 158
120
97
6118
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
ELA eliminated in 12 July 2018
ELA collateral buffer estimated at euro13bn based on existing collateral
valuation and haircuts
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
04
52
44 INTERBANK REPO ACTIVITY
| LIQUIDITY
Funding from Non-ECB Eligible Collateral (eurobn)
Interbank Repos Τrends
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 balance increased to euro33bn at the end
of June
Increased volumes assisting reduction of Eurosystem reliance
1
3
2
euro39bn
00
05
10
15
20
25
30
35
40D
ec1
6
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
Ap
r1
8
May
18
Jun
18
Au
g18
euro33bn
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
04
53
45 CAPITAL CONTROLS UPDATE FURTHER RELAXATION AS OF OCT18
| LIQUIDITY
Cash Withdrawal Limit
bull No limit for withdrawals performed domestically
(applicable from 01102018)
bull euro5000 equivalent per month per customer for withdrawals
performed abroad
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening bull Allowed with no exceptions (applicable from 01032018)Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiarybull Allowed (applicable from 01032018)
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad bull 100 of incoming funds can be re-transferred abroadChange of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroad
bull Private individuals can transfer up to euro4000 per 2 months
(applicable from 01072018)Trade Related Payments
bull lteuro1m approval at bank level
(applicable from 181018)
bull Weekly limit for bank-level committee at euro250mn
bull gteuro1m approval by the Banking Transactions
Approval Committee (applicable from 181018)
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
27 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
05A P P E N D I X
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
05
55 | APPENDIX
51 PIRAEUS BANK LEADING POSITION IN GREECE
Gross Loans - Greece Customer Deposits - Greece Greek Branch Network
55
352
469
485
574
1
19
22
27
29
2
21
21
26
29
Source Bank of Greece for Greek market data and financial information for banks as of Jun18 (Attica Βank as of Mar18)
32 business
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
05
56 | APPENDIX
52 HIGH CUSTOMER EXPERIENCE AT THE STARTING POINT
24 45 25 41
Excellent Very Good Good Moderate Poor
Overall ExperienceQ Having in mind your banking experience with Piraeus Bank how would you rate it overall
Preference ScoreQ How strongly do you prefer Piraeus Bank to any other bank
Sample size n=153k customers
TRIM Index
93
75
84
18 27 43 8 32
Extremely Very Strongly Strongly Moderately At all NA TRIM Index Benchmarks - Banking
Top-10 Index 94
Top-33 Index 81
TRIM Index Mean 74
Bottom-33 Index 68
Bottom-10 Index 56
Source TNS normative database Europe 536k interviews among retail bank customers (Y2013-Y2016)
2016 92
2016 72
2016 82
The customer retention index TRIM (Measuring Managing and Monitoring) shows the strength ofrelationship between the customer and the Bank taking into account their overall experience with and theirpreference to the Bank
Customer Satisfaction Survey 20171
1 Quantitative research using Computer-Assisted Telephone Interviewing (CATI) Fieldwork was conducted between June 20th and August 9th 2017 by ldquoKANTAR TNSrdquo
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
05
57 | APPENDIX
53 SHAREHOLDER STRUCTURE
HFSF
26
Institutional Investors amp Legal
Entities
68
Individuals
6
Piraeus Shareholder Structure (Jun2018)
Shareholder structure of Piraeus Bank presents great diversity total number of common shareholders 30k
The Hellenic Financial Stability Fund holds 26 of outstanding common shares
The remaining 74 is held by the private sector 68 by legal entities and 6 individuals
Strong international presence with significant part of free float held by foreign institutional investors
Common Shares
Private sector 323 mn
HFSF 114 mn
Total 437 mn
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
05
58 | APPENDIX
54 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q118 Q218 qoq Q217 yoy
Net Interest Income 340 340 0 403 -16
Net Fee Income 73 74 1 74 -1
Trading amp Other Income 21 39 87 68 -43
Total Net Revenues 434 453 4 546 -17
Total Net Revenues (recurring) 434 478 10 500 -5
Employee Costs (257) (123) -52 (130) -6
Employee Costs (recurring) (115) (119) 3 (130) -9
Administrative Expenses (96) (111) 16 (103) 8
Depreciation amp Other (26) (25) -7 (22) 10
Total Operating Costs (380) (259) -32 (256) 1
Total Operating Costs (recurring) (238) (255) 7 (256) 0
Pre Provision Income 54 195 - 290 -33
Pre Provision Income (recurring) 196 222 13 244 -9
Result from Associates (8) (16) - (18) -12
Impairment on Loans (159) (130) -19 (249) -48
Impairment on Other Assets 11 24 - (17) -
Pre Tax Result (101) 73 - 5 -
Tax 35 (30) - 8 -
Net Result Attrib to SHs (66) 43 - 14 -
Minorities Attrib to SHs 0 0 0 (1) -54
Discontinued Operations Result (4) (6) - (23) -
Q118 Q218 qoq Q217 yoy
10 9 -14 10 -10
1 1 -30 2 -61
5 (3) - 1 -
16 7 -57 13 -48
16 7 -57 13 -48
(2) (2) 13 (2) 6
(2) (2) 13 (2) 6
(3) (3) -5 (2) 54
0 0 - 0 -
(6) (6) -3 5 19
(6) (6) -3 5 19
10 1 - 8 -
10 1 - 8 -
(1) 1 - (1) -
(4) (19) - (15) -
(19) (4) - 0 -
(14) (21) - (7) -
0 1 - 2 -
(13) (19) - (4) -
(1) (1) 36 0 -
1 (303) - (55) -
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
05
59 | APPENDIX
55 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 64947 62048 58627 57702 53749 -13 -7
Business 42511 40389 37962 37276 34057 -16 -9
Mortgages 16162 15696 15183 15007 14757 -6 -2
Consumer 6274 5964 5482 5419 4934 -17 -9
Greece 61296 58905 56597 55680 52623 -11 -5
Business 39792 38027 36317 35655 33113 -13 -7
Mortgages 15707 15330 14973 14797 14700 -4 -1
Consumer 5797 5548 5307 5229 4809 -13 -8
Intrsquol 3650 3143 2030 2022 1126 -64 -44
Business 2719 2362 1645 1621 944 -60 -42
Mortgages 455 366 210 210 57 -84 -73
Consumer 476 416 175 190 125 -70 -34
Deposits Evolution (euromn)
Dec16 Jun17 Dec17 Mar18 Jun18 yoy qoq
Group 42365 40918 42715 43151 42102 3 -2
Savings 14995 14379 15134 14945 14430 0 -3
Sight 11190 10860 11682 10982 10851 0 -1
Time 16179 15679 15900 17225 16821 7 -2
Greece 39322 38185 40889 41404 41903 10 1
Savings 14613 14069 14825 14624 14415 2 -1
Sight 10536 10123 11125 10473 10765 6 3
Time 14172 13993 14938 16308 16723 20 3
Intrsquol 3043 2733 1826 1747 199 -93 -89
Savings 382 310 309 321 15 -95 -95
Sight 654 737 556 509 86 -88 -83
Time 2007 1686 961 917 98 -94 -89
Notes loan balances exclude seasonal agri-loan of euro17bn and euro16bn for Dec16 and Dec17 respectively Serbian operations excluded from Jun17 onwards Piraeus Bank Romania from Dec17 onwards Piraeus Bank Bulgaria and Tirana Bank from Jun18 onwards
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
05
60 | APPENDIX
56 IFRS9 SEGMENT amp STAGE ANALYSIS | GROUP
impact
euro1621mn
Gross Loans (eurobn)
Dec171 Mar18 Jun18 Δ
Stage 1 192 189 186 -03
Stage 2 69 70 59 -11
Stage 3 323 318 293 -25
Total 584 577 537 -40
Coverage () Jun18
Mortgages Consumer Business Total
Stage 1 0 2 1 1
Stage 2 6 18 8 8
Stage 3 29 67 50 47
Total 13 42 30 27
47 47 49
Jun17 Dec17 Jun18 IFRS 9
NPE Coverage Evolution ()
Notes excluding loans accounted for at fair value through the PampL (euro280mn) and seasonal loan to farmers (euro16bn)
IAS 39
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
05
61 | APPENDIX
57 CONTINGENT CONVERTIBLE BONDS
Term amp 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 amp Paid in cash or shares
Coupon is tax deductible impacting directly equity position as dividend
No dividend shall be paid on the issuerrsquos 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 7543 per cent pa)
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 euro2040000000
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
62 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
1 NII Net Interest Income
2 DTAs Deferred Tax Assets
3 PPA adjustment
Purchase price allocation (PPA) adjustments relating to the acquisition of the seven banks [ie former ATEbank
the Greek banking 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 euro46bn at the end of H118 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
5 Net Loans Loans and advances to customers
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 Non Recurring (One-off) Items
In Q217 euro45mn of other income relating to the net effect of remeasurement of the present value of a finance
lease obligation of Picar SA off-set by the loss on the remeasurement of the City Link investment property at fair
value was classified as one-off ldquo(Picar One-Offrdquo) In Q218 euro24mn loss in other income was flagged as one-off In
Q118 euro142mn of Voluntary Exit Scheme (ldquoVESrdquo) staff costs and in Q218 euro4mn of Voluntary Exit Scheme and other
extraordinary staff costs were classified as one-off (ldquoVES One-Offrdquo)
9 Pre Provision Income (PPI)Total net income less total operating expenses excluding one-off items The relevant amount 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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
63 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
12 CET1 Capital Ratio on Pro-forma BasisCET1 capital ratio taking into account RWA relief for the divestments of Piraeus Bank Bulgaria and Albania and two
NPE sales (Amoeba and Arctos)
13 IFRS 9 First Time Adoption (FTA)The final impact on regulatory capital (fully loaded) from first time adoption of IFRS 9 on 1 January 2018 of
approximately euro20 billion
14 Adjusted total assets
Total assets excluding assets of discontinued operations and two NPE sales (Amoeba and Arctos) amounting to
euro26bn in June 2018 and assets of discontinued operations amounting to euro18bn in March 2018 and euro10bn in June
2017 respectively
15 Net Interest Margin (NIM) Net interest income over adjusted total assets
16 Net Fee Income over Assets Net fee and commission income over adjusted total assets
17 NPLs - Non Performing Loans Loans and advances to customers in arrears over 90 days past due gross of PPA adjustments
18 NPEs - Non Performing Exposures
On balance sheet credit exposures before allowances for impairments on loan losses 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
19 NPL Ratio Non-performing loans over gross loans before impairments amp adjustments
20 NPE Ratio Non-performing exposure over gross loans before impairments amp adjustments
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
64 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
21 NPL Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Loans
22 NPE Coverage Ratio Allowances for impairment on loan losses gross of PPA adjustments over Non-Performing Exposures
23 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
24 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
25 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)
26 Net Fee Income (NFI or NF+CI) Net fee and commission income
27 Cost of Risk (CoR) Allowances for impairment on loans and advances to customers over net loans
28 Return on Assets (RoA) Profit (loss) for the period over adjusted total assets
29 Net Results or Net Profit Profit (loss) for the period attributable to equity holders of the parent
30 Cumulative provisions (Loan loss reserves ndash LLR) Allowance for impairment on loans and advances to customers gross of PPA adjustment
31 Cumulative provisions (LLRs) over gross loans Cumulative provisions for loans and advances to customers over gross loans before impairments and adjustments
32 Operating Expenses (OpEx) Total operating expenses before provisions
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
65 | GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
33 Loan impairment charges (Provision Expenses) Impairment losses on loans and advances to customers
34 Pre Tax Results Profit (loss) before income tax
35 New Loan Generation New loan disbursements that were realized after previous end period
36 Customers Number of customers both individuals and legal entities with a banking relationship (account) with Piraeus Bank
37 Cross Selling Ratio Total product groups over total number of customers
38 ELATotal Assets ELA Total adjusted Assets
39 GampA Costs Administrative expenses
40 DTC Deferred tax credit
41 PPE Property and equipment plus investment property
42 Tangible Book Value Equity minus value of cocos (euro 2040 mn) minus goodwill and intangibles (euro 295 mn)
43 FTEs Full time employees
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
66
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 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 The information contained in this presentation is confidentialand is solely for the use of the intended 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 capitalThis presentation 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 orlegal 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 theinformation contained 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 solelyresponsible for forming 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 professionaladvice in relation to the Bank and you should consult with your own advisers as to the legal tax business financial and related aspects andor consequences of any investment decision No responsibility orliability is accepted by any person 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
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 liabilitywhich may arise 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 itsfinancial and other advisors and their respective directors officers employees agents and representatives accept no liability for any loss howsoever arising directly or indirectly from any use of theinformation in this presentation or in connection therewith Certain information contained in this presentation is based on estimates or expectations of the Bank and there can be no assurance that theseestimates or expectations are or will prove to be 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 toupdate any of the information contained in this presentation 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 personBy accepting 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 measuresshould be 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 ldquotargetsrdquo ldquobelievesrdquoldquoexpectsrdquo ldquoaimsrdquo ldquointendsrdquo ldquomayrdquo ldquoanticipatesrdquo ldquowouldrdquo ldquocouldrdquo or similar expressions or the negative thereof constitute forward-looking statements notwithstanding that such statements are notspecifically identified 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 relatingto the Bankrsquos strategies plans objectives initiatives and targets its businesses outlook political economic or other conditions in Greece or elsewhere the Bankrsquos financial condition results of operationsliquidity capital resources 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 directorsconcerning the foregoing 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 controlof 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 tous and if any one or 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 ifthere are such differences 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 statements speak 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-lookingstatement to reflect events or circumstances 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
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
Investor Relations Contacts
Chryssanthi Berbati
Antonis Sagris
Xenofon Damalas CFA
Αmalia Missailidi
George Doukas
67
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024
wwwpiraeusbankgroupcom
Latest update 30 October 2018
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
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
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