National Bank of Greece Q1.2014 Results May 28 th , 2014 Q1.2014 - PowerPoint PPT Presentation

National Bank of Greece Q1.2014 Results May 28 th , 2014

Q1.2014 Results: Highlights

National Bank of Greece | Q1.14 Results Q1.14 Result Highlights Post the € 2.5bn capital increase and before capital actions, CET1 1 ratio at 15.4% 2  Q1.14 Group PAT “in the black” for a 6 th consecutive quarter at € 181mn   Operating profit (PPI less Provisions) doubles qoq to € 76mn • Group NII remains resilient +7% yoy, 0% qoq in stable currency terms • Group cost cutting (-10% yoy) is driven by impressive results in domestic personnel cost containment (-19% yoy) – Group Cost to income ratio already at 54%, Domestic at 52% • 90dpd formation in Greece and Turkey on a continuous decelerating trend (-6% and - 66% qoq) despite seasonality  Finansbank on a positive trajectory, bounces back from Q4.13 lows: Q1.14 PAT at TL192mn (+102% qoq)  Industry leading L:D ratio at 93%, with Greece at 84%  Following the capital raising and the 5 yr bond issue at a yield of 4.5%, ECB funding down to € 14.5bn, 3 of which € 7.1bn through EFSF bonds 1 Common Equity Tier 1 , CRD І V rules for 2014 2 Pro forma for the completed € 2.5bn capital increase, Finansbank IRB, and Astir Hotel sale; excluding BoG approved capital actions deliverable by Sep.14 3 Date as of 19 May 14 page 3

Highlights National Bank of Greece | Q1.14 Results Positive Group PAT for a 6 th quarter in a row driven by the doubling of Operating Profit Highlights Consolidated P&L Account Pre-Provision Earnings € mn Q1.14 Q1.13 yoy% Q4.13 qoq% Q1.14 PPI of € 438mn (+25% yoy) absorbs declining credit risk charges of € 362mn (-15% yoy), producing operating profit of NII 751 772 -3% 776 `-3% € 76mn Net fees 129 135 -4% 136 -5% Q1.14 Group PAT, is “in the black” for a 6 th consecutive quarter Insurance income 20 14 +39% 17 +18% Q1.14 Group NII – stripping off the TL translation impact - keeps recovering in Greece and SEE, displaying remarkable resilience in Trading & other income 44 (7) - 131 -66% Turkey: Income 944 915 +3% 1 060 -11% • Greece: +14% yoy Operating Expenses (506) (563) -10% (638) -21% • SEE: +9% yoy Pre-Provision Earnings 438 352 +25% 422 +4% • Turkey: -2% yoy (TL terms), despite a strong Q1.13 Loan Provision Charges (362) (428) -15% (388) -7% Cost containment accelerates in Greece (-16% yoy ) driving Q1.14 Group OpEx down by 10% yoy Operating Profit 76 (76) - 34 >100% Credit risk charges are reduced further by 15% yoy and 7% qoq, Impairments & other one-offs 138 117 +18% 535 -74% driven by reduced 90dpd formation (-32% yoy, -6% qoq) Taxes (20) (7) >100% (18) +11% Finansbank starts to recover from the tough levels of Q4.13: • Core income: +1% qoq Minorities & non cash chrg (13) (7) +86% (4) >100% • OpEx: -6% qoq Attributable PAT 181 27 >100% 547 -67% • PPI: +24% qoq • PAT: +102% (TL 192mn) SEE produces a quarterly PAT of € 14mn € 750mn 5yr senior unsecured bond issue priced through the sovereign at a yield of 4.5% page 4

Highlights National Bank of Greece | Q1.14 Results NPL Formation decelerates further, liquidity improves, capital adequacy is strengthened Asset Quality Liquidity Pre-Provision Earnings Capital Formation of domestic past due loans Eurosystem exposure reduced by € 6.2bn Q1.14 reported CET I ratio at 10.5% dropped further to € 312mn in Q1, ytd, to just 7% of Group assets Pro forma for the € 2.5bn capital reduced by 32% yoy and 6% qoq, L:D at 84% domestically, and 93% for increase and before capital actions*, supporting a decelerating trend for 6 C Ε T I at 15.4% the Group, driven by strong deposit quarters in a row gathering in the key regions: Greece +15% yoy, Turkey +23% yoy Q1.14 domestic provisioning charges reduced by 17% at 270bps vs 324bps in Q1.13. Domestic coverage at 56%, up by 270bps yoy Domestic: +90dpd flows Group & Domestic L:D +1.200 CET I +1.031 117% 15,4% 115% 112% +1.028 EBA CT I CET I 108% 105% 102% 10,5% +800 112% 109% 10,3% +90dpd formation 106% 97% 97% 93% Q1.14 -32% yoy +487 +457 101% +378 +382 +332 +312 96% RWAs: € 57.7bn +400 93% 90% 88% 84% FY.13A Q1.14A Q1.14*PF +0 * : Pro forma for the € 2.5bn cap. increase, FB IRB and Astir hotel Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q1.12 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 sale, before capital actions € 1,040mn page 5

Highlights National Bank of Greece | Q1.14 Results Gradual NII recovery in Greece, resilience in Turkey despite systemic pressures (-2%qoq) Group Income Group Net Interest Margin & NII Pre-Provision Earnings € mn Group NII yoy breakdown ( € mn) Q1.14 Q1.13 yoy% Q4.13 qoq% Group NIM - bps +0% Adjusted for stable TL 400 NII 751 772 -3% 776 -3% terms € mn Q1.14 Q1.13 yoy Net fees 129 135 -4% 136 -5% 364 359 Greece 418 365+14% 370 346 +1% Adjusted Insurance income 20 14 +39% 17 +18% In TL terms for stable TL Turkey 254 336 -2% terms 340 326 325 Core income 900 922 -2% 929 -3% 317 Adjusted for SEE & Int’l 79 72+11% stable TL terms Non core income 44 (7) - 131 -66% 310 Group NII 751 772 +7% Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Total Group Income 944 915 +3% 1 060 -11% Greece: NII & NIM Turkey: NII & NIM SEE: NII & NIM NII (TL mn) NIM (bps) NIM (bps) NII ( € mn) NIM (bps) 903 794 788 787 770 721 354 322 314 312 332 365 388 393 413 418 NII ( € mn) NII ( € mn) 266 260 591 260 252 643 251 376 336 67 556 303 66 284 254 62 LT avg 580bps 62 62 512 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 page 6

Highlights National Bank of Greece | Q1.14 Results Personnel costs in Greece down by 19% reflecting the successful completion of the large scale VRS Greece Group Operating Expenses G&As & Depreciation - € mn Personnel expenses - € mn € mn Q1.14 Q1.13 yoy% Q4.13 qoq% 300 160 271 Greece 257 306 -16% 326 -21% 255 - 38% vs Q1.10 140 234 -25% vs Q1.10 250 116 208 Personnel expenses 169 208 -19% 212 -20% 120 104 93 98 100 87 169 200 G&A’s 63 73 -13% 85 -25% 80 Depreciation 24 25 -2% 29 -15% 150 60 -6% on a stable Turkey 190 195 -2% 246 -23% 40 currency 100 and like for 20 like basis SEE & other 60 63 -4% 67 -10% 50 0 Q1.10 Q1.11 Q1.12 Q1.13 Q1.14 Group Opex 506 563 -10% 638 -21% Q1.10 Q1.11 Q1.12 Q1.13 Q1.14 € mn Q1.14 Q1.13 yoy% Q4.13 qoq% Group C:I ratio Personnel exp. 276 323 -14% 340 -19% 80% -8% pps yoy G&As 183 190 -4% 249 -26% 70% 62% 60% 54% Group C:I at Depreciation 47 50 -7% 49 -4% 60% 54% the lowest since 2011 Group Opex. 506 563 -10% 638 -21% 50% 40% Q1.13 Q4.13 Q1.14 page 7

Highlights National Bank of Greece | Q1.14 Results Q1.14 90dpd formation normalizes in Turkey, decelerates further in Greece +90dpd Evolution +90dpd flows & CoR Group: +90dpd flows Group: +90dpd Greece: +90dpd +1.600 29% 23% +1.244 +1.162 23,0% 28,4% +1.200 22,5% 27,4% 21,9% 26% 21% 27,1% Q1.14 flows +662 25,9% -38% yoy 20,8% +800 24,3% 19,8% +617 23% 19% +563 23,1% 19,0% +476 +403 21,9% +380 18,2% +400 17% 20% 19,3% 16,5% 15% 17% +0 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Group Cost of Risk- bps Turkey: +90dpd SEE: +90dpd 7% 28% 600 6,1% 6,0% 5,8% 500 6% 26% 5,5% 418 5,4% 24,8% 24,6% 5,2% 5,2% 24,4% 23,9% 400 24,1% 23,1%23,3% 5% 24% 271 271 Incl. TL 0.5bn NPL sale 247 300 250 NPL ratio to benefit 236 c.100bps in Q2.14 from TL 4% 22% 0.7bn retail NPL portfolio 200 sale in May 3% 20% 100 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q3.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 page 8

Highlights National Bank of Greece | Q1.14 Results Sustained deposit gathering across regions reduces further Group and Domestic L:D to 93% and 84% Loans / Deposits Eurosystem Funding ( € bn) Greece: Deposits Evolution 100% ELA € mn Q1.14 Q4.13 ytd yoy Group 100% ECB. 117% 115% 33 Adj. for Savings 15 414 15 722 -2% +2% 30,9 112% € 7.1bn EFSF 108% bonds net 105% 102% Sight 6 365 6 773 -6% +15% 27,5 112% 109% Eurosystem 25,5 106% 97% 97% exposure / Time deposits 21 943 21 233 +3% +17% 93% 22,2 Assets at 101% 20,7 7.2%* 96% Customer deposits 43 722 43 727 +0% +11% Greece 18,0 93% 90% 88% 14,5 State & Public entities 2 178 0 - >100% 84% Total 45 900 43 727 +5% +15% Q1.12 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 May.14 (*) excl. EFSF bonds Eurosystem funding and Total Assets Greece: Deposits SEE: Deposits Turkey: Deposits Greece: € 45.9bn 5,6 TL 40.4bn 5,5 5,3 5,2 5,1 SEE: € 5.4bn +15% yoy 45,1 43,7 + 23%yoy 40,6 +2% yoy 40,1 38,9 TL retail 37.3 36.6 bonds 35.1 32.8 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 page 9