PRESENTATION BASED ON Q3.18 FINANCIAL RESULTS November 2017 TABLE - PowerPoint PPT Presentation

PIRAEUS BANK GROUP PRESENTATION BASED ON Q3.18 FINANCIAL RESULTS November 2017

TABLE OF CONTENTS 01 EXECUTIVE SUMMARY 02 PLAN 2021 03 FINANCIAL PERFORMANCE 04 ASSET QUALITY 05 LIQUIDITY 06 APPENDIX

01 . EXECUTIVE SUMMARY

01 1.1 GREEK ECONOMY OUTLOOK Real GDP Returns to Growth Trajectory (2017: +1.5% , 9Μ .18: +2.1%) € 48.2bn in 9M.18 Exports Improve Notably (vs € 44.5bn in 9M.17) 3.0 2.0 2.2 70 QoQ % change YoY % change Exports of goods and services 2017 € 60bn 2016 Long term average 2.0 60 € 56bn 1.0 50 0.0 40 -1.0 30 2018-2019 -2.0 20 outlook -3.0 10 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 Q3/18 2018 2019 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Economic Sentiment Indicator (ESI) Unemployment Rate Fallen Significantly (2017: 21.5%) & Manufacturing PMI Point to Improving GDP Dynamics 30 Unemployment Rate Economic Sentiment Indicator (left axis) PMI Manufacturing (right axis) 115 60 25 110 19.0 55 20 105 16.9 50 100 15 95 45 10 90 40 85 2018-2019 5 35 outlook 80 75 30 0 Q2.04 Q4.04 Q2.05 Q4.05 Q2.06 Q4.06 Q2.07 Q4.07 Q2.08 Q4.08 Q2.09 Q4.09 Q2.10 Q4.10 Q2.11 Q4.11 Q2.12 Q4.12 Q2.13 Q4.13 Q2.14 Q4.14 Q2.15 Q4.15 Q2.16 Q4.16 Q2.17 Q4.17 Q2.18 Q4.18 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 4 | EXECUTIVE SUMMARY

01 1.2 PIRAEUS BANK RECENT DEVELOPMENTS Significant Progress on Capital Enhancement Plan Actions 01 • 85% of the internal capital generating actions agreed, have been concluded (late Nov.18 update) • The remaining actions will be concluded by early 2019 02 03 04 Deposits End of Restructuring Plan New NPE Plan • The 2021 NPE target is set at € 13bn, indicating • Steady inflows of € 0.8bn in Q3 • Greek commitments fully completed • International divestments to be concluded soon: a cumulative decrease of € 14bn vs Sep.18 and € 3.6bn yoy • 2 plans were unveiled by the HFSF & the BoG • Same trend continued in Q4 - Tirana Bank sale to close by Q1.19 • Further easing of capital recently, intending to support the Greek NPEs - Piraeus Bank Bulgaria sale to close by Q1.19 de-risking at a systemic level controls , with no limit on cash withdrawals and facilitation of business transactions as of 05 06 New Loan Demand Enhancing NPE Sales early Oct.18 • ELA funding zeroed in mid-July • Arctos & Amoeba transactions concluded in • €2 bn new loans disbursed in 9M.18 at 5.0% rate • Healthy business demand is emerging across Oct.18 ( € 1.8bn GBV in total) • 2 new NPE sales projects in the pipeline specific sectors geared to growth and exports • More than € 3bn target for FY.18 achieved ( €1.4 bn GBV in total): Project Nemo (non-binding offers received) regarding shipping loans and Project Iris regarding consumer, small business loans 5 | EXECUTIVE SUMMARY

01 1.3 GROUP FINANCIAL HIGHLIGHTS Net Results Liquidity NPEs Core Bank €9 4mn 90% LDR €359mn - € 5.2bn in Greece NPEs yoy recurring net SHs profit in Q3 profit in 9M • NIM of 2.95% • NIM of 2.45% in 9M • Deposits in Greece + € 1.8bn ytd • Sales € 1.8bn in 9M • OpEx down 6% yoy in 9M • Repos € 2.2bn • Decreasing defaults • NFI of 0.78% • CoR 1.58% in 9M • Covered Bonds IG rating • Decreasing re-defaults • RoA at 1.2% 6 | EXECUTIVE SUMMARY

01 1.4 GROUP BALANCE SHEET Group, €bn Dec.17 Jun.18 Sep.18 26% Assets (1) 67.4 56.8 56.9 91% LDR LLRs over loans Gross Loans (2) 60.3 53.7 52.8 enhanced liquidity profile Net Loans (2) 44.7 39.4 38.9 € 3.1bn ELA Loan Loss Reserves (2) 15.5 14.4 13.9 new loan generation eliminated in Customer Deposits (2) 42.7 42.1 42.9 budgeted for 2018 mid-July 2018 (achieved) Eurosystem Funding 9.7 1.8 2.0 (1) Assets of Sep.18 & Jun.18 vs. Dec.17 exclude completed sales (Avis, Serbia, Romania), α s well as planned divestments (Albania, Bulgaria, agreed NPE sales) (2) Gross loans, net loans, loan loss reserves and customer deposits of Sep.18 & Jun.18 exclude operations in Bulgaria and Albania, which as of Q2.18 were classified as discontinued operations 7 | EXECUTIVE SUMMARY

01 1.5 SELECTED GROUP BALANCE SHEET ITEMS DEVELOPMENT Assets (€bn ) Gross Loans (€bn ) 9M.17: - € 1.6bn 67.4 60.3 56.9 52.8 -4.0 -1.6 -0.5 -1.0 -1.6 -1.4 -1.2 -1.8 -1.8 -2.1 -0.9 Dec.17 Disc Ops Seasonal Sales EFSF IFRS9 9M Sep.18 Dec.17 Disc Seasonal Sales Write-offs 9M Sep.18 Agri Loan Bonds FTA Net delta Operations Agri Loan Net delta Loan Loss Reserves (€ bn) Deposits (€bn ) + € 1.8bn 42.7 +1.5 +0.2 42.9 +0.8 +1.7 -1.6 +0.5 15.5 -0.7 13.9 -1.3 -2.1 -0.4 Dec.17 IFRS9 FTA Sales Write-offs Cost Other Sep.18 Dec.17 Disc Seasonal State Household Business Sep.18 [loans] of risk Operations Agri Loan Deposits Deposits Deposits Related Note: in assets movement, discontinued operations delta includes Avis, Serbia, Romania, Albania, Bulgaria, and the 2 NPE sales portfolios. In the other items, this element includes Bulgaria and Albania, which were classified as discontinued during Q2.18 8 | EXECUTIVE SUMMARY

01 1.6 GROUP OPERATIONAL PERFORMANCE Group (1) , €mn Q1.18 Q2.18 Q3.18 qoq Net Revenues | recurring 450 484 453 -6% Operating Expenses | recurring (242) (259) (244) -6% 243bps NIM 57bps NFI Pre Provision Income | recurring 208 225 210 -7% over assets in Q3 over assets in Q3 Loan Impairment (163) (149) (149) 0% Other Items (2) (17) (31) 6 - 54% C:I 153bps CoR Non Recurring Items (3) (142) 6 43 - unchanged qoq in Q3 Pre Tax Result (115) 51 110 - Net Results Attrib. to SHs | recurring 22 20 64 - Note: assets adjusted for discontinued and held for sale operations Net Results Attrib. to SHs (79) 24 94 - Net Result from Disc’d Ops Attrib. to SHs (4) (3) (309) (27) - (1) P&L figures illustrated exclude the Group’s discontinued operations (2) Other Items line includes associates’ income & other impairments (3) Non Recurring Items include: for Q1.18, € 143mn VES and staff costs related to FTEs who left the Bank [reported in OpEx] for Q2.18, € 24mn loss [reported in other income], € 5mn staff costs [reported in OpEx], reversal of loan impairment of € 67mn from the sale of 2 NPE portfolios [reported in loan impairment] and € 32mn loss [reported in other impairment] for Q3.18, € 48mn extraordinary quality commission for past performance in our cooperation for general insurance business with international partner [reported in net fee income], € 5mn staff costs [reported in OpEx] (4) Discontinued operations loss incorporates a negative amount of € 139mn of FX reserves from Romania and Serbia, with no effect in equity capital, as it had affected it in the past 9 | EXECUTIVE SUMMARY

01 1.7 ASSET QUALITY TRACK RECORD & PROVISIONS Group NPE Development | € bn €5.2bn On track with 37.7 35.8 NPE reduction 32.9 2018 NPE 96% 28.5 in the last 12 months reduction target -3.9 -0.4 13.4 collateral €9.2bn - €0.8bn provisions 13.9 NPE reduction Q3.18 ΝPE quarterly from Sep.15 peak reduction Sep.15 Dec.16 Dec.17 ytd disc.ops Sep.18 Coverage peak Provisions Over The P ast 2 Years | € bn Loan Portfolio Supervisory Assessment | € bn 4.5 +0.5 59.3 €52.7 bn of loan portfolio +2.0 (as of 30.09.17) has already 6.6 been assessed 2.0 39.2 Collectively assessed Individually assessed 13.5 FY.17 IFRS9 FTA 9M.18 Total Gross Loans (parent level) 10 | EXECUTIVE SUMMARY

01 1.8 NPE SALES IN THE PIPELINE Project Nemo: Project Amoeba: c. €0. 6bn gross book value €1.4bn gross book value • Predominantly secured shipping loans • Secured large SME and corporate loans • Houlihan & Lokey is acting as Financial Advisor • Sale agreed with Bain Capital Credit LP in May • 8 non-binding offers received in Dec.18 2018 and concluded near end of Oct. 18 Η 2.18 H1.19 Project Arctos: Project Iris: €0.4bn gross book value c. €0.8bn gross book value • Unsecured personal loans & credit cards • Unsecured personal loans & credit cards, • Sale agreed to consortium led by APS small business loans, leasing exposures Investments Capital s.r.o. in Jun. 2018 and • VDR to open in Feb.19 concluded at the end of Oct.18 11 | EXECUTIVE SUMMARY

01 1.9 IMPROVED LIQUIDITY Domestic Deposits | € bn 49.5 42.7 40.9 41.4 41.9 39.3 36.1 • Deposit inflows: € 1.8bn ytd • Positive deposit movement in all quarters • Q4 ~+ € 0.3bn (end Nov.) Dec.14 Dec.15 Dec.16 Dec.17 Mar.18 Jun.18 Sep.18 Wholesale Funding | € bn 34 2 Repos ELA ECB 23 21 • Zero ELA reliance since mid-July 2018 17 8 12 • € 4.0bn covered bonds received Investment Grade 11 Rating in late Aug, widening ECB eligible collateral 2 8 16 14 2 6 5 4 2 9 3 2 4 4 2 2 Dec.14 Dec.15 Dec.16 Dec.17 Mar.18 Jun.18 Sep.18 12 | EXECUTIVE SUMMARY