Corporate Presentation November, 2016 Important Notice Forward - PowerPoint PPT Presentation

Corporate Presentation November, 2016

Important Notice – Forward Looking Information No representation or warranty, express or implied, is or will be made in relation to, and no responsibility is or will be accepted by National Bank of Greece (the Group) as to the accuracy or completeness of the information contained in this presentation and nothing in this presentation shall be deemed to constitute such a representation or warranty. Although the statements of fact and certain industry, market and competitive data in this presentation have been obtained from and are based upon sources that are believed to be reliable, their accuracy is not guaranteed and any such information may be incomplete or condensed. All opinions and estimates included in this presentation are subject to change without notice. The Group is under no obligation to update or keep current the information contained herein. In addition, certain of these data come from the Group’s own internal research and estimates based on knowledge and experience of management in the market in which it operates. Such research and estimates and their underlying methodology have not been verified by any independent source for accuracy or completeness. Accordingly, you should not place undue reliance on them. Certain statements in this presentation constitute forward-looking statements. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. As a result, you are cautioned not to place any reliance on such forward-looking statements. Nothing in this presentation should be construed as a profit forecast and no representation is made that any of these statement or forecasts will come to pass. Persons receiving this presentation should not place undue reliance on forward-looking statements and are advised to make their own independent analysis and determination with respect to the forecast periods, which reflect the Group’s view only as of the date hereof. Corporate Presentation – November 2016 1 Legal

Table of Contents 1 Overview 2 Financial Highlights 3 Liquidity 4 Profitability 5 Asset quality 6 Capital 7 Macro 8 Appendix

Overview 1

Comprehensive strategy to tap the Greek recovery potential Strong brand Deeply r recognition  Utilize high coverage and capital levels to work through NPLs  Deploy liquidity to support the recovery of the Greek economy  Deliver RoTE in excess of cost of capital with low execution risk Deeply rooted customer Deeply r relationships Corporate Presentation – November 2016 4 Overview

Strong brand recognition and deeply rooted customer relationships Strategically positioned with high customer penetration Reputational excellence in Greece: “premium brand of choice”  Bank of reference in Greece for over 170 years High customer penetration 45 Thessaloniki − 6mn retail customers Best Reputation (Survey) (1) Most Trustworthy (Survey) (1) − c.8,500 corporate Next 20 Big Cities: 76 Prefectural capitals: 74 clients (4) Rest of Greece: 150 − 1,456 ATMs 34% 33% − 69.030 POS 179 27% 28% 23% S a m o s − 3,9 m debit cards 22% 20% Athens 17%  524 (3) branches providing full and efficient geographic NBG Peer 1 Peer 2 Peer 3 NBG Peer 1 Peer 2 Peer 3 coverage Deeply rooted customer relationships Core deposit market share (9M16) (2) Limited participation in M&A activity during Greek banking sector consolidation has safeguarded NBG’s identity, client relationships and has enhanced service Total deposits/ € 68.6m € 54.2m € 45.0m € 52.8m experience branch  No brand contamination 28.5%  Culture preservation and consistency in service with focus on innovation and 27.1% 19.6% improvements 15.4%  Well positioned to manage loan performance and troubled assets − Knowledge of customer base (KYC) − Consistent, conservative underwriting standards NBG Peer 1 Peer 3 Peer 2  Well positioned to attract deposit inflows Source: Company disclosure Notes: (1) Based on C.A.P.I. tracking study during the period April-June 2015 (2) Core deposits include current, sight and savings. Greek deposit market as per the BoG definition includes deposits of the general government. (3) Includes 1 private banking unit (4) Not including SBLs Corporate Presentation – November 2016 5 Overview

Technology and innovation provide new value added services Modern and sophisticated bank offering premium cashless and digital services  Strategic emphasis on developing and upgrading the i-bank platform has resulted in significant transaction growth  Following imposition of capital controls NBG issued c.1.2m debit cards and opened 300,000 e-banking accounts. Debit card transaction volumes increased 6x yoy  Strong digital channels Old but not old fashioned Internet users Electronic transactions 14.7m 17.6m 21.0m 1,285K 1,123K € 28.8bn 870K € 25.9bn € 25.0bn 2014 2015 9M16 2014 2015 9M16 i-bank Store Selected digital and premium initiatives Premium Branches  Extensive e-banking platform with ancillary value adding services (e.g. money transfers, share trading, payment of dues to tax authorities and other companies and organizations)  Highly innovative i-bank store platform targeting young age groups  Premium banking provides a personalized service to the affluent segment  Upgrading digital infrastructure a key priority  First full banking relationship loyalty program:  Number of customers at 450K (+50%) in June 2016 vs 300K in the end of 2015  Encourages stronger banking relationship by rewarding more than 30 products, services and transactions  Online point attribution to customers, real time view of the point balance  Wide network of participating merchants including super markets, gas stations, department stores, telecommunications, hi – tech stores, as well as selected NBG products Source: NBG Corporate Presentation – November 2016 6 Overview

NBG aims to capitalize on strong client relationships and superior liquidity position, to increase exposure in business lending, benefitting NIM Leader in mortgages Levering up to increase exposure in business lending #1 #3 NBG 19.8% NBG 26.3% Leader in low cost savings deposits Leader in P&C and life insurance #1 #1 NBG 19.0% NBG 35.6% Market shares: Life: 26% Non-Life: 11% Corporate Presentation – November 2016 7 Overview

Dedicated and independent internal units for retail collections and corporate NPL management Corporate NPL Management Overview of Portfolio (30.09.2016) of which  Special Assets Unit (“SAU”) is a centralised unit with end -to-end responsibility for the Corporate Balance ( € bn) #Clients FTEs (denounced) management of corporate NPLs with: Large Corporates 1.7 0.5 400 35 − Vertically integrated management to ensure single point accountability and SMEs (1) 2.6 1.4 4,040 96 efficient decision making (2) − Dedicated SAU RMs and separate Credit Committees SBL(Legal Entities) 1.4 0.8 12,671 96 − Clear prioritisation strategy based on ageing, size, collateralisation levels and Legal, Control & Operational 55 legal status Total 5.7 2.7 17,111 282 − Internally developed tools to prioritise alternative strategies and assess debtors’ viability − Short-term and longer-term target setting and RM productivity monitored monthly − Certain corporate exposures are managed by the business unit Retail Balance ( € bn) Treatment Clients (‘000) FTE Retail Collections Unit Mortgages 7.0 Collections 107 225 Consumer 3.3 Restructuring 49 159  Retail Collections Unit (“RCU”) is an independent unit focused on management of retail NPLs and collections Micro-SBL 1.2 Legal/ 223 338 − Centralised unit with end-to-end responsibility Settlements − Strategy differentiated by customer segmentation: collecting in early buckets, Total 11.6 379 721 restructuring subsequently, legal actions according to selection criteria, and Branches (execution) 867 settlements for >360dpd − New restructuring products designed to ensure solution sustainability based on Various support functions 125 PTI and on client’s disposable income after subtracting reasonable living expenses − Tight performance monitoring of internal collection center and external c. 2,000 FTEs deployed in collections and NPL agents and lawyers through comprehensive KPIs management − Champion/challenger tactics frequently employed to test new segment strategies based on cohort attributes (profession, income, dpd, collateral) Notes: all NBG figures refer to domestic Greek business (1) SME: small & medium enterprises (2) SBL: small business loans Corporate Presentation – November 2016 8 Overview

Assets – liabilities mix – 9M16: low ELA exposure, deposit funded loanbook Asset mix ( € b) Liability mix ( € b) 81.7 81.7 Cash, 2.0 Interbank placements, 2.9 Interbank liabilities, 5.2 ECB, 7.5 Securities, 13.8 ELA, 5.2 EFSF/ESM bonds, 9.3 Savings, 17.7 Domestic deposits 36.0 Current & Sight, 6.4 Domestic net loans, 31.9 Time & Other, 11.9 SEE & Other deposits, 6.6 SEE & Other net loans, 6.0 Debt securities, 1.5 DTA, 5.1 Other Liabilities, 10.1 Other, 10.8 Total equity and minorities, 9.8 Assets Liabilities Corporate Presentation – November 2016 9 Overview