N ti National Bank of Greece l B k f G Covered Bond Programme Covered Bond Programme September, 2009
National Bank of Greece | Covered Bond Programme Disclaimer This presentation contains forward ‐ looking statements. Such statements include, but are not limited to, discussions regarding targets under average economic and market conditions, our objectives and strategies, and future results of regarding targets under average economic and market conditions, our objectives and strategies, and future results of our operations, together with the assumptions regarding the business environment and risk conditions in reliance upon which such statements are made. Such statements can be generally identified by the use of terms such as “believes,” “expects,” “may,” “will,” “should,” “would,” “could,” “plans,” “anticipates” and comparable terms, and the negatives of such terms. However, by their nature, these forward ‐ looking statements involve numerous assumptions and uncertainties, both general and specific. Actual results could differ materially from those expressed or implied in any such statements, in particular as a result of factors such as fluctuations in interest rates, exchange rates and stock indices, the effects of competition in the areas in which we operate, and changes in economic, political, regulatory and technological conditions. We caution that the foregoing list is not exhaustive. di i i h h f i li i h i When relying on forward ‐ looking statements to make decisions, investors should carefully consider the aforementioned factors as well as other uncertainties and circumstances. We undertake no obligation to publicly update or revise any forward ‐ looking statements, whether as a result of new information, future events or otherwise. Any statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. page 2
N ti National Bank of Greece l B k f G Overview and Financial Performance Overview and Financial Performance September, 2009 Covered Bond Programme
National Bank of Greece | Covered Bond Programme NBG today: At a glance • Largest and oldest financial institution in Greece • Average 22% market share in Greek market with approximately 7.0 mn clients Largest listed company in Greece by market capitalization; 11 th largest EU bank • • Diversification of income sources; top positions in strategic emerging markets, SEE and Turkey • Superiorly positioned for current environment Sound balance sheet and a conservative risk management strategy Sound balance sheet and a conservative risk management strategy Robust capital base Superior liquidity position Resilient top ‐ line, despite challenging operating conditions, complemented by strict cost containment Regional leadership in attractive growth markets; strong future growth platform Regional leadership in attractive growth markets; strong future growth platform • Rating: Moody’s: Aa3, Fitch: A ‐ , S&P: BBB+ page 4
National Bank of Greece | Covered Bond Programme History: almost 170 years of successful operation 1841 ‐ National Bank of Greece S.A. (NBG) was founded 1880 ‐ NBG listed on the Athens Stock Exchange 1891 ‐ NBG founded Ethiniki Hellenic General Insurance Company 1927 ‐ NBG founded National Mortgage Bank 1928 ‐ The establishment of the Central Bank of Greece , ends NBG’s responsibility to issue currency in Greece in addition to its commercial banking services 1953 ‐ NBG merged with Bank of Athens S.A. 1998 ‐ NBG merged through absorption with its subsidiary "National Mortgage Bank of Greece S.A.", in order to provide integrated mortgage lending services to its customers 1999 ‐ NBG listed on the New York Stock Exchange 2002 ‐ NBG acquired United Bulgarian Bank in Bulgaria and Stopanska Banka in FYROM 2002 ‐ NBG merged with its subsidiary “National Bank for Industrial Development SA” 2003 ‐ NBG acquired Banca Romaneasca in Romania 2006 ‐ NBG acquired Finansbank in Turkey and Vojvodjanska Banka in Serbia page 5
National Bank of Greece | Covered Bond Programme An established leader, with over 15 years of experience in the broader region Total presence Diversified footprint in adjacent markets Assets Branches Employees Branches 283 Branches 151 Branches 65 ( € bn) ( 000s) Loans/GDP% 72.5 Loans/GDP% 38.5 Loans/GDP% 43.6 GDP per capita ($) 12,341 GDP per capita ($) 12,580 GDP per capita ($) 9,157 Bulgaria Romania o a a 85.4 85.4 575 575 16.2 16.2 Greece Greece FYROM FYROM 14.2 461 11.0 Turkey Branches 204 Loans/GDP% 39.6 GDP GDP per capita ($) i ($) 10,792 10 792 10.9 772 9.8 SEE Serbia 110.5 1 808 37.0 Group Albania Branches 30 Loans/GDP% 35.6 GDP per capita ($) 6,859 • NBG is a regional leader in attractive growth markets and is committed to market leadership in its core markets of market leadership in its core markets of Greece, Turkey and SEE • Growth rates in NBG’s target markets expected to outperform relative to Euro Greece Cyprus Turkey area area Branches 579 Branches 16 Branches 459 – Low loan penetration Loans/GDP% 102.7 Loans/GDP% 278 Loans/GDP% 36.1 GDP per capita ($) 30,535 GDP per capita ($) 29,830 GDP per capita ($) 13,138 – Low GDP per Capita page 6 Source: International Monetary Fund, World Economic Database, April 2009 ‐ GDP per capital data are on PPP basis
National Bank of Greece | Covered Bond Programme 1 st Half 2009: Strong Group results across all four areas of focus Sustainable Earnings Power Conservative Risk Management Attributable PAT for H1.09 at €708mn, with Q2.09 at NPLs up 65bps qoq to 4.4% with cash coverage at 67% NPLs up 65bps qoq to 4.4% with cash coverage at 67% Attributable PAT for H1.09 at €708mn, with Q2.09 at €391mn, up +23% qoq €391mn, up +23% qoq Q2.09 charge ‐ offs peak at €260mn or 157bps (+13bps qoq), Q2.09 charge ‐ offs peak at €260mn or 157bps (+13bps Solid Q2.09 pre ‐ provision earnings at €814mn (484bps), up Solid Q2.09 pre ‐ provision earnings at €814mn (484bps), up in ‐ line with guidance qoq), in ‐ line with guidance +23% qoq +23% qoq +23% +23% qoq Conservative portfolio, focused on secured credit (85%) Conservative portfolio, focused on secured credit (85%) NII up 11% yoy and +2% qoq keeping NIM above 400bps NII up 11% yoy and +2% qoq keeping NIM above 400bps Bond portfolio dominated by GGBs: +€300mm AFS reserve Bond portfolio dominated by GGBs: +€300mm AFS reserve Cost : Income at an all time record low of 43% Cost : Income at an all time record low of 43% gain in Q2 gain in Q2 Strong Liquidity St Li idit C Capital Management it l M t Loan/Deposits ratio improves to 94% in Q2.09 €1.25bn July 09’ rights issue, 2.2x covered Loan/Deposits ratio improves at 94% in Q2.09 €1.25bn July 09’ rights issue 2.2x covered 52bps internal capital generation in Q2.09 alone p p g Q Balanced loan growth of €2.4bn ytd fully matched by deposits g f y f y y p 52bps internal capital generation in Q2.09 alone 52bps internal capital generation in Q2 09 alone Balanced loan growth of €2.4bn ytd fully matched by Balanced loan growth of €2 4bn ytd fully matched by gathering of €3.0bn ytd . deposits gathering of €3.0bn ytd . €450mn Hybrid buyback added 25bps in core equity €1bn Hybrid buyback added 25 bps in core equity Shift to core deposits adds €1.8bn of core deposits in Q2 Pro forma Tier I at 12.2% with Core Tier I at an industry Shift to core deposits adds €1.8bn of core in Q2 Pro forma Tier I at 12.2% with Core Tier I at an industry high of 10.8% Market share in savings accounts firm at 33% high of 10.8% Market share in savings accounts firm at 33% TCE to TA at 5.4% with 16% of Total Assets in GGBs h f l Customer deposits at 73% of total funding pool TCE to TA at 5.4% with 16% of Total Assets in GGBs Customer deposits at 73% of total funding pool page 7
National Bank of Greece | Covered Bond Programme Strong top ‐ line confirms earnings power sustainability Pre ‐ provision Earnings Profit After Tax Return on Equity Pre ‐ Provision Earnings Strong pre ‐ provision earnings (even before trading ) … support bottom line … generate pre ‐ crisis returns 30% €1 477mn 814 €708mn +21% yoy 1 216 Trading RoE 24% RoE 24% gains g ‐ 13% yoy 13% yoy 25% 25% RoTE at 37% €814mn €391mn 662 22% 317 +23% qoq 20% +23% qoq 15% Q2.08 Q3.08 Q4.08 Q1.09 Q2.09 H1.08 H1.09 Q1.09 Q2.09 H1.08 H1.09 Q1.09 Q2.09 Net Interest Income & Margin Income vs. OpEx Cost : Income Resilience in the top line combined with … … cost control across the Group … results in record low C/I NII (€mn) NIM (bps) €1 396mn 47% 1500 1000 460 968 46% Income +14% qoq 945 44% 950 440 1200 1200 43% 900 420 900 410 403 €581mn Opex 850 400 600 +3% qoq q q 800 380 300 Q2.08 Q3.08 Q4.08 Q1.09 Q2.09 Q2.08 Q3.08 Q4.08 Q1.09 Q2.09 H1.08 H1.09 Q1.09 Q2.09 Q2.08 Q3.08 Q4.08 Q1.09 Q2.09 page 8
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