PIRAEUS BANK GROUP FIXED INCOME PRESENTATION TABLE OF CONTENTS 01 - PowerPoint PPT Presentation

PIRAEUS BANK GROUP FIXED INCOME PRESENTATION

TABLE OF CONTENTS 01 OVERVIEW 02 LIQUIDITY 03 CAPITAL 04 ASSET QUALITY 05 MACRO OUTLOOK 06 APPENDIX

01 . OVERVIEW

01 1.1 PIRAEUS BANK STRENGTHS AND GOALS STRENGTHS GOALS market leader in loans and deposits reduce NPLs and NPEs to a normalised level strong reinvigorated management team create a profitable and sustainable business model sound capital and liquidity position maintain a strong capital base delivering on our transformation strategy re-establish wholesale market funding access 4 | OVERVIEW

01 1.2 PIRAEUS AT A GLANCE #1 #1 €68 .2bn in loans in deposits ❶ Assets 620 13.9k € 45.7bn ❷ Net Loans branches headcount 5.1mn € 41.8bn >1.7mn ❸ Deposits customers e-banking users ❹ 17.0% CET-1 ratio [phased-in] >470k 11 years mobile banking average length of 109% ❺ Loans-to-Deposits ratio customer relationships users * data for Group operations in Sep.17 * data for domestic operations in Dec.17 5 | OVERVIEW

01 1.3 PIRAEUS BANK LEADING POSITION IN GREECE Gross Loans - Greece (%) Customer Deposits - Greece (%) Greek Branch Network (#) 35% 620 in Dec.17 business 29% 628 30% 28% 489 26% 22% 486 21% 18% 402 21% 55 2% 1% Source: Bank of Greece for Greek market data and financial information for banks, as of Sep.2017 6 | OVERVIEW

01 1.4 SHAREHOLDER STRUCTURE Piraeus Shareholder Structure (Dec.2017) Shareholder structure of Piraeus Bank presents great Individuals diversity; total number of common shareholders 30k 6% The Hellenic Financial Stability Fund holds 26% of HFSF outstanding common shares 26% 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 Institutional Investors & Legal Entities Common Shares 68% Private sector 322 mn HFSF 115 mn Total 437 mn 7 | OVERVIEW

01 1.5 NEW BOARD OF DIRECTORS Chairperson Independent Non Executive Members George Handjinicolaou Karel De Boeck Vice Chairman Non Executive Chairman Chair of the Risk Management Committee, Member of the Audit Committee, Strategy Committee Chair of the Strategy Committee Former CEO at Dexia and Fortis Group, Former Vice Chair of ABN AMRO Holdings (UK) Ltd • Former Deputy CEO of ISDA where he served since 2011, Senior Management positions in Dresdner Kleinwort Benson, Bank of America Merrill Lynch and UBS in London and New York Arne Berggren Executive Members Chair of the Remuneration Committee, Chair of the Nominations Committee, Member of the Strategy Committee and of the Risk Management Committee Christos Megalou • Former Senior Advisor to IMF, banks and organizations Managing Director (CEO) Enrico TommasoCucchiani Chair of the Executive Committee Former CEO of Eurobank Ergasias SA, Vice-Chairman of Southern Europe of Credit Suisse Investment Member of the: Audit Committee, Board Members’ Nominations Committee, Remuneration Banking, Distinguished Fellow (Global Federation of Competitiveness Councils) Committee, Strategy Committee • Former CEO of Intesa San Paolo, CEO of Think Global Investments, Management Board of Allianz George Georgakopoulos David Hexter Executive General Manager, Piraeus Legacy Unit Member of the Executive Committee Chair of the Audit Committee, Member of the: Risk Management Committee, Board Members’ Former CEO of Eurobank Romania (BancPost), former CEO of 4Finance Nominations Committee, Remuneration Committee, Strategy Committee • Chair and Board member of banks, commercial institutions (EBRD, Citi, Supervisory Board member Zachodny Bank) Non Executive Members Venetia Kontogouris Solomon Berahas • Founder and Managing Director of Venkon Group, LLC Member of the: Risk Management Committee, Audit Committee, Board Members’ Nomination • Family operated business with PE investments, VC investment in hi-tech Committee, Remuneration Committee • Real Estate portfolio consisting of commercial and residential development CEO of Tiresias SA, Group Risk Director at Eurobank Per Anders Fasth Alexander Blades HFSF Representative, Member of the: Risk Management Committee, Audit Committee, Board Members’ Nomination Committee, Remuneration Committee, Strategy Committee Member of the: Risk Management Committee, Remuneration Committee, Board Members’ • Former CEO of SBAB Bank and Senior Executive of SEB Nomination Committee, Strategy Committee • Non Executive Board member of Scandinavian banks / financial institutions Partner at Paulson & Co. Inc 8 | OVERVIEW

01 1.6 ASSETS & LIABILITIES OVERVIEW amounts in €bn Asset Funding Mix Mix Total 68.2 68.2 Total Total 73.9 Cash 3.2 73.9 Total 7.8 3.0 Securities 3.0 ELA Cash ELA 3.3 EFSF|ESM 3.6 10.3 Securities 4.2 Bonds ECB 8.5 2.2 EFSF|ESM 5.5 ECB Bonds Interbank Repos 5.2 Interbank Repos 25.7 25.2 Core Deposits 45.7 Core Deposits Net Loans Net Loans 46.4 16.0 Time Deposits 16.2 Time Deposits 2.1 Fixed Assets 9.7 Total Equity PPE 2.1 Other 10.6 2.2 Other 9.7 Total Equity 10.6 Jun.17 Jun.17 Other 2.4 Other Sep.17 Sep.17 9 | OVERVIEW

01 1.7 RING-FENCING AND DOWNSIZING LEGACY ASSETS Piraeus Bank Business model based on Decisive action on legacy issues, efficiency & risk-adjusted returns value-generating businesses “Piraeus Core Bank” “Piraeus Legacy Unit” Q1.17 H1.17 9M.17 Q1.17 H1.17 9M.17 RWAs € 25.2bn € 24.1bn € 23.5bn RWAs € 28.0bn € 28.6bn € 28.9bn NPE € 32.7bn € 32.1bn € 31.5bn NPE € 2.6bn € 2.5bn € 2.3bn RoA <0% <0% <0% RoA 1.1% 1.1% 1.1% Reg.Capital € 4.2bn € 4.0bn € 4.0bn Reg.Capital € 4.7bn € 4.8bn € 4.9bn Corporate Retail Asset Recovery International Discontinued & Banking Management Banking Unit Operations Operations Inv. Banking 10 | OVERVIEW

01 1.8 PROGRESS AGAINST 2020 GROUP TARGETS 9M.17 Q1.17 H1.17 2020 Targets NIM to >310bps from 273bps 270bps 271bps NFI to >65bps from 61bps 50bps 50bps CIR to <43% 51% from 53% 51% LDR to <105% 109% 116% 113% from NPE 55% to <30% 55% 56% from 36% NPL 38% 37% to <15% from to ~1.5% Pre-tax RoA losses losses losses from to >1.0% RoA break-even break-even losses from Note: c. € 70bn assets at the end of 2020 (est.) for the calculation of NIM, NFI and RoA; NPE ratio over on balance sheet data 11 | OVERVIEW

1.9 9M.2017: ACCELERATION IN EXECUTION ESPECIALLY 01 WITH REGARDS TO IMPROVING ASSET QUALITY Operating profitability improving • Core banking income comprising NII and fees, at €1,593mn ,+1% yoy P&L • Operating costs at €870mn , -5% yoy • Cost to income ratio at 51% from 56% a year ago • Pre provision income at €844mn in 9M, +16% yoy Ν PE & NPL stock down for 8th consecutive quarter in Q3 • NPE stock down to €33.8 bn, - €2.5 bn yoy NPEs|NPLs • NPE operational target attained for 5th quarter in a row • NPE formation at - € 0.3bn, NPL formation at - € 0.5bn (both pre write-off) • NPL stock down to € 22.1bn, - € 3.3bn yoy, at 36% vs 39% a year earlier Increased deposit inflows in Q3; decreased Eurosystem reliance • Deposits in Greece + € 0.9bn in Q3, continuing the upward trend started in Q2 Liquidity • Loans to deposits ratio at 109% down from 113% in Q2; 2nd best domestic market level • Eurosystem reliance at €12bn , - € 9bn ytd; ELA below € 6bn in late November; 2nd best domestic market level • Issue of a 5Y € 0.5bn covered bond (3M euribor +250bps) in Oct.17; interbank repos at € 1.6bn in late Nov.17 12 | OVERVIEW

01 1.10 SIGNIFICANT PROGRESS AGAINST “AGENDA 2020” PLAN Maximising value from core businesses while accelerating clean-up of legacy issues • PLU reduced RWA size by € 0.6bn qoq and by € 1.7bn in the past 6 months, while CET-1 ratio increased by 27bps De-risk • NPE & NPL reduced. “Agenda 2020 ” set targets to < € 20bn for NPEs & < € 10bn for NPLs in 2020 Balance sheet • Disposal of AVIS Greece, Hellenic Seaways stake and Serbian & Romanian banking operations • 3rd public open e-auction via www.properties4sale.gr in Dec.17 | more than 6 auctions in 2018 Optimizing resources, while investing in digitalization • OpEx -5% yoy, domestic cost to income at 48%, moving towards the medium-term target for <43% in 2020 Resize & focus • Further rationalization of domestic network, -32 branches vs. Dec.16 down to 620 by Dec.17 • Additional optimization of Greek FTEs, -215ytd to reach level of 13,200 by year-end 2017 • Migration of transactions to digital channels with target of 86% by end-2018 well on track (76% in Sep.17) Maintaining leading position in business lending, with a focus on SMEs • Core Bank posted € 311mn net profit in 9 Μ , RoA of 1.1%, NIM at 309bps and net fees at 87bps over assets Profitable & sustainable • New loan generation slightly up for SME book, aiming at > € 1bn new loans in 2018 from € 0.6bn in 2017 business model • Further reduction of ELA balance, aiming at full elimination by year-end 2018 • Recent issue of covered bond paves the way for increased market access retuning to normal liquidity conditions 13 | OVERVIEW