H 1 2 0 1 9 R e s u l t s August 29, 2019 Key Highlights - - PowerPoint PPT Presentation

H 1 2 0 1 9 R e s u l t s

August 29, 2019

Contents

• Key Highlights
• Macroeconomic Update
• H1 19 Financial Performance
• Appendix

 Asset Quality  Capital  Volumes  P&L

9M 2013 Results FY 2013 Results 3 3 H1 2019 Results This presentation has been prepared and issued by Alpha Bank solely for informational purposes. For the purposes of this disclaimer, this presentation shall mean and include materials, including and together with any oral commentary or presentation and any question and answer session. By attending a meeting at which the presentation is made, or otherwise viewing

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sanctions attached to the misuse, disclosure or improper circulation of the presentation or any information contained herein. By reading this presentation, you agree to be bound by the following limitations: No representation or warranty, express or implied, is or will be made in relation to, and no responsibility is or will be accepted by Alpha Bank (or any member of Alpha Bank’s Group) as to the accuracy, fairness or completeness of the information contained in this presentation and nothing in this presentation shall be deemed to constitute such a representation or

• warranty. The information contained in this presentation may contain and/or be based on information that has been derived from publicly available sources that have not been

independently verified. Alpha Bank is not under any obligation to update, revise or supplement this presentation or any additional information or to remedy any inaccuracies in or

• missions from this presentation.

This presentation does not constitute an offer, invitation or recommendation to subscribe for or otherwise acquire securities. Also, it is not intended to be relied upon as advice to investors or potential investors and does not take into account the objectives, financial situation or needs of any particular investor. You are solely responsible for forming own opinion and conclusion. Certain statements in this presentation may be deemed to be “forward-looking”. You should not place undue reliance on such forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they reflect current expectations and assumptions as to future events and circumstances that may not prove accurate. Forward-looking statements are not guarantees of future performance, and the actual results, performance, achievements or industry results of Alpha Bank’s operations, results of operations, financial position and the development of the markets and the banking industry in which it operates or is likely to operate may differ materially from those described in, or suggested by, the forward-looking statements contained in this presentation. In addition, even if the operations, results of operations, financial position and the development of the markets and the banking industry in which Alpha Bank operates is consistent with the forward-looking statements contained in this document, those results or developments may not be indicative of results or developments in subsequent periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements including, without limitation, general economic and business conditions, competition, changes in banking regulation and currency fluctuations. Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements in this document reflect Alpha Bank’s current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to Alpha Bank's financial position, operations, results of operations, growth, strategy and expectations. Any forward-looking statement speaks only as of the date on which it is made. New factors will emerge in the future, and it is not possible for Alpha Bank to predict which factors they will be. In addition, Alpha Bank cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those described in any forward looking statements. Alpha Bank disclaims any obligation to update any forward-looking statements contained herein, except as required pursuant to applicable law.

Disclaimer

• Key Highlights
• Macroeconomic Update
• H1 19 Financial Performance
• Appendix

 Asset Quality  Capital  Volumes  P&L

H1 2019 Results

9M 2013 Results FY 2013 Results 5 5 H1 2019 Results

Q2 2019 Financial Performance Overview

Financial Performance

PAT at €59mn for Q2 2019 and €87mn for H1 2019 PPI increased q-o-q by 19% to €323mn in Q2 2019 from €271mn in Q1 2019 due to higher trading gains NII stable on a quarterly basis at €389mn Fees increased by 16% q-o-q to €81mn, on the back of higher volume of card transactions Impairment losses on loans at €246mn vs €243mn the previous quarter

Commercial Activity

Loan disbursements picked up reaching €0.9bn in Q2 2019 and €1.5bn for H1 2019 Deposits in Greece increased by €0.3bn in Q2 2019, driven by customer deposits inflows

Asset Quality

NPEs in Greece down by €0.4bn in Q2 2019, with negative formation across all segments Sales processes for 2 NPL transactions

• f c.€3.7bn, have commenced

Liquidity

Group LDR at 102% as of June 2019 versus 111% a year ago ECB funding at €4.1bn and Repos at €6.2bn

Capital

Phased in CET1 ratio increased by 80bps q-o-q to 17.8%, positively affected by GGBs performance, RWAs decrease and the profits of Q2 FL B3 CET1 ratio at 14.8% Buffer of €1.9bn over

• ur SREP ratio requirements

New business plan

to be presented in Q4 2019 Q1 Q2 Q3 Q4

9M 2013 Results FY 2013 Results 6 6 H1 2019 Results

Key pillars of our strategy Dealing decisively with the NPE burden while minimizing execution risk and preserving capital strength Restoring profitability through a more customer centric approach, supported by superior service levels and disciplined capital allocation decisions Increasing efficiency across the servicing model through emphasis on data analytics, automation, digitalization and process optimization Delivering a new, transparent and effective governance structure to act as the key custodian of the new Strategy Drastic improvement of balance sheet health Meet stakeholder expectations on capitalization levels Create value for shareholders

• Key Highlights
• Macroeconomic Update
• H1 19 Financial Performance
• Appendix

 Asset Quality  Capital  Volumes  P&L

H1 2019 Results

9M 2013 Results FY 2013 Results 8 8 H1 2019 Results

Reduced sovereign risk and improving economic sentiment

• The continued decline in the 10yr Greek government bond yields reflects a fall in

sovereign risk, attributed to external factors (expectations for the maintenance of accommodative monetary policy stance), as well as favourable domestic developments (political stability, expectations for a pro-growth policy mix)

• Structural factors contribute to the faster drop of the 10-year GGBs yield

compared to the respective periphery sovereigns in the euro area:  Negative yields worldwide;  17% of the Greek government debt is held by private bondholders;  Adequate cash reserves, covering the financing needs for more than 2 years

• The combination of low financing needs and a projected debt-decreasing

snowball effect, on average, over 2019-2020, enhances debt sustainability prospects in the medium term

• In July 2019, ESI in Greece recorded its highest performance since March 2008,

surpassing the respective Eurozone index for the first time after almost 5 years, supported by the perception of a change in the policy mix, the recovery of the domestic economic activity and the fall in sovereign risk

10yr GB yields YTD drops and Distance to S&P investment grade Convergence of the Economic Sentiment Indicator between Greece and the Eurozone Gross financing needs and Snowball effect in 2019-2020

Source: Bloomberg Source: European Commission, IOBE, Alpha Bank Economic Research calculations Source: European Central Bank, AMECO (April 2019) and Alpha Bank Economic Research calculations The snowball effect refers to the average 2019-2020 difference between sovereign funding costs and expected GDP growth.

65 75 85 95 105 115

Jul-07 Jan-09 Jul-10 Jan-12 Jul-13 Jan-15 Jul-16 Jan-18 Jul-19

Economic Sentiment Indicator - Eurozone Economic Sentiment Indicator - Greece 6-month moving average 6-month moving average

Euro Area Germany Ireland Greece Spain France Italy Cyprus Portugal

5 10 15 20 25 30 35 40

• 2.5
• 1.5
• 0.5

0.5 1.5 2.5 Total debt servicing needs over the next two years (% of GDP) Expected average snowball effect for 2019-2020

The size of the bubbles represents the expected debt-to-GDP ratio in 2020.

• 4

1 3 1 9 7

Distance from S&P investment grade

• 70

30 130 230 330 430 Greece Italy Spain Portugal Germany France 31/12/2018 27/8/2019

257,4 bps 160,4 bps 133,3 bps 161,0 bps 93,5 bps 112,1 bps bps

10yr GB yields YTD drops

9M 2013 Results FY 2013 Results 9 9 H1 2019 Results

Economic recovery continues as confidence improves

• Real GDP growth is expected to remain on an upward trajectory,

supported by robust private consumption, an investment rebound and strengthened business and consumer confidence, especially in the aftermath of national elections

• The recovery of the Greek economic activity continued in the first quarter
• f 2019, albeit at a slower pace, broadly in line with the slowdown of the

economic activity in the euro area

• Business expectations in retail trade began to improve since May 2019,

while Consumer Confidence Indicator remains on upward trend for the fifth consecutive month

• The prospects for the construction sector and the real estate market are

set to strengthen further in the coming years, underpinned by the property-related tax reductions, the acceleration of the implementation of the investment in Hellinikon and the design of other large investment projects in Attica and Thessaloniki

Real GDP growth maintains its recovery dynamics amid a less favourable international environment Green shoots of recovery in the Construction sector Consumers and Retailers sentiment is trending upwards

Source: Eurostat

*volume, annual % change

Source: ELSTAT, IOBE, Bank of Greece Source: IOBE

• 11
• 9
• 7
• 5
• 3
• 1

1 3

2011Q1 2011Q4 2012Q3 2013Q2 2014Q1 2014Q4 2015Q3 2016Q2 2017Q1 2017Q4 2018Q3 2019Q2

Real GDP Growth (%)-Euro area Real GDP Growth (%)-Greece Manufacturing Production* -Euro area, rhs Manufacturing Production* -Greece, rhs 30 40 50 60 70 80 90 100 110

• 50%
• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% Ι ΙΙΙ I ΙΙΙ I ΙΙΙ I ΙΙΙ I ΙΙΙ I ΙΙΙ I ΙΙΙ I ΙΙΙ I ΙΙΙ I 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Private Building Activity, volume (m3), 4q m. av., % annual change, lhs Construction Confidence Indicator, 4q m.av., rhs Office Price Index (half-year frequency), 2010=100, rhs

3.9% 7.7% 6.4%

• 80
• 70
• 60
• 50
• 40
• 30
• 20
• 10

40 50 60 70 80 90 100 110 120 Retail Trade Confidence Indicator, lhs Consumer Confidence Indicator, rhs

9M 2013 Results FY 2013 Results 10 10 H1 2019 Results

Recovery in real estate market; Improving labor market conditions; Tourism receipts good performance is maintained

• The recovery dynamics in residential property prices accelerated further

in Q1 2019, with nominal residential property prices rising by 4.0% y-o-y (2018: 1.6%). The rise in house prices was more pronounced in Athens (5.8% y-o-y) compared to the rest of Greece

• The sectoral breakdown of employment in Q1 2019 reveals that almost

all sectors of the economy contributed to job creation, with the broader public sector, other services and tourism remaining among the main

• contributors. In May 2019, the unemployment rate (seasonally adjusted)

stood at 17.2%, down by 2.2 pps one year earlier

• In H1 2019, tourism receipts increased by 15.3% y-o-y despite the

marginal decline in tourist arrivals (-0.5% y-o-y). As a result, the average expenditure per trip increased to Euro 567.1 from Euro 489.2 in H1 2018

Recovery accelerates in residential real estate market countrywide Greece sees increase in travel receipts, despite a marginal decline in tourist arrivals Contribution to job creation by sector of economic activity (annual change in thousand)

Source: Bank of Greece, ELSTAT

annual % change

Source: Bank of Greece Source: ELSTAT

• 40%
• 30%
• 20%
• 10%

0% 10% 20% 30% 40%

• 6%
• 4%
• 2%

0% 2% 4% 6% I II ΙΙΙ IV I II ΙΙΙ IV I II ΙΙΙ IV I II ΙΙΙ IV I 2015 2016 2017 2018 2019

Residential RE prices - Athens Residential RE prices - Thessaloniki Residential RE prices - Other cities Residential RE prices - Other areas Residential RE prices - Greece Residential Investment, s.a., rhs

100 200 300 400 500 600 700 2 4 6 8 10 2012H1 2013H1 2014H1 2015H1 2016H1 2017H1 2018H1 2019H1

Tourism Receipts (in € bn) Tourist Arrivals (in ml persons) Average expenditure per trip (in €), rhs 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

• 500
• 400
• 300
• 200
• 100

100 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2019

Manufacturing Other Services Public Admin. Tourism Trade Construction Industry Agriculture Employment rate (% labour force), rhs

• Key Highlights
• Macroeconomic Update
• H1 19 Financial Performance
• Appendix

 Asset Quality  Capital  Volumes  P&L

H1 2019 Results

9M 2013 Results FY 2013 Results 12 12 H1 2019 Results

Q2 2019 Group P&L and Balance Sheet highlights

Balance Sheet (€ bn) 30/06/2019 31/03/2019 qoq change (€ bn) 31/12/2018 Assets 63.0 61.6 1.4 61.0 Net Loans 39.9 39.9 … 40.2 Deposits 39.3 38.9 0.3 38.7 Tangible Equity (TE) 7.9 7.7 0.2 7.7 Common Equity Tier 1 Ratio (CET1) 17.8% 17.0% … 17.4% NPE ratio 48.1% 48.9% … 48.9% NPE Cash Coverage 4 47% 47% … 48% NPL ratio 32.7% 33.3% … 33.5% NPL Cash Coverage 4 69% 69% … 70% Profit & Loss (€ mn) H1 2019 H1 2018 yoy % change Q2 2019 Q1 2019 qoq % change Net Interest Income (NII) 777 903 (13.9%) 389 388 0.1% Fee and commission Income 151 167 (9.2%) 81 70 15.6% Trading & Other Income 209 282 (25.7%) 135 75 80.1% Operating Income 1,138 1,351 (15.8%) 604 533 13.3% Total Operating Expenses (544) (548) (0.8%) (282) (262) 7.5% Recurring Operating Expenses (523) (536) (2.5%) (267) (256) 4.0% Core Pre Provision Income 427 552 (22.6%) 214 213 0.5% Pre Provision Income (PPI) 594 803 (26.0%) 323 271 18.9% Impairment Losses on Loans (489) (722) (32.3%) (246) (243) 1.4% Other Impairment Losses 14 22 … (9) 22 … Profit/ (Loss) before income tax (PBT) 119 104 15.0% 68 51 33.3% Income Tax (32) (91) … (9) (24) … Profit/ (Loss) after income tax 87 13 … 59 27 … Net Interest Margin (NIM) 2.5% 3.0% 2.5% 2.5% Cost to Income ratio (Recurring) 55.7% 49.3% 55.5% 54.6%

1 1 2018 comparative figures have been restated due to reclassification of expenses paid to VISA, Mastercard and Diners from

General Expenses to Net Fee and Commission Income

2 Core Pre Provision Income excludes trading, extraordinary expenses and one-offs in other income (a goodwill impairment of

€9.7mn in relation to an associated company for Q1 2019)

3 Restated as modification losses reclassified from “Other Impairment Losses” to “Impairment Losses on Loans” line 4 Provisions include €101.2mn for off balance sheet items as of June 2019

• Core Pre Provision Income at €214mn in Q2 2019, stable q-o-q,

as the combined result of improved core income items driven by stable NII and higher fees, was offset by an increase in core expense items

• Pre Provision Income stood at €323mn, up by 18.9% q-o-q,

benefitting from higher trading gains

• Impairment losses on loans at €246mn in Q2 2019, effectively

flat q-o-q, implying a CoR of 1.9% over gross loans

• Profit After Tax at €59mn in Q2 2019 vs €27mn in Q1 2019

2 2 3 3

1 2 3 1 2 3 4 4

9M 2013 Results FY 2013 Results 13 13 H1 2019 Results

CET1 ratio up by 80bps q-o-q at 17.8%

CET1 capital 8,121 8,454

17.0% 17.8% 14.8%

12bps 45bps 19bps 4bps

17.8%

CET1 Mar-19 Period Result FVOCI (ex AFS reserve) DTA reduction & threshold utilisation RWAs & Other CET1 Jun-19 Total CAD Jun-19 FLB3 IFRS9 CET1 Jun-19

€1.9bn buffer over OCR SREP

• f 13.75%

for 2019 6,903 8,469

CET1 ratio quarterly evolution (€ mn)

• CET1 ratio at 17.8%, increased by 80bps,

positively affected by our Greek Government Bonds portfolio valuation

• CET1 ratio on a fully-loaded basis also

increased q-o-q by 80bps to 14.8%

• c.€2.1bn of capital is allocated to our net

NPEs

• Tangible Equity stood at €7.9bn in June

2019, increased from €7.7bn in March 2019, with a TBV per share at €5.1

1 Fair Value Through Other Comprehensive Income. This is mainly related to GGB portfolio valuation

231 527 Mar-19 Jun-19

GGB unrealized gains (€ mn)

+€296mn A 50bps move in GGBs yields will result in a

• c. €160mn of

gain/loss before tax in FVOCI portfolio

1 1

10Y GGB Mid-YTM evolution (%)

4.35 Dec-18 Mar-19 Jun-19 Aug-19

1.55

29.03.19 28.06.19

3.73 2.43

Standardised method – Capital allocation over 2019 SREP

47.6 3.2 15.3 RWA Jun-19 29.1 @ 13.75% SREP €1.9bn Buffer over 2019 SREP Total CAD Jun-19 4.0 0.4 2.1 8.5 1.9

NPEs DTC Buffer Other

€2.1bn allocated for our net NPEs 6.5 SREP Capital requirement

9M 2013 Results FY 2013 Results 14 14 H1 2019 Results

Q2 2019 Core PPI stable

1 Core Pre Provision Income excludes trading, extraordinary expenses and one-offs in other income (a goodwill impairment of €9.7mn in relation to an associated company for Q1 2019)

• NII stable q-o-q, as the NII decrease from loans counterbalanced the benefit from the lower deposits and wholesale funding cost
• Fees increased by €10.9mn compared to Q1 2019, primarily reflecting an increased card usage, a higher volume of bond and syndicated loans

issuance and a higher contribution from asset management as well as other commercial banking transactions

• Opex increased by €10.3mn q-o-q, mainly on the back of higher general expenses as a result of higher consulting fees, as well as marketing

expenses

271 (58) 213 0.2 10.9 0.3 (10.3) 214 124 (15) 323 Q1 19 Reported PPI Trading and

• ne-offs

Q1 19 Core PPI Δ NII Δ Fees Δ Other income Δ OPEX Q2 19 Core PPI Trading One-offs Q2 19 Reported PPI

PPI q-o-q evolution (€ mn)

1 1 1

+€1mn

9M 2013 Results FY 2013 Results 15 15 H1 2019 Results

NII stable q-o-q; NIM stable q-o-q at 2.5%

(2.4) 1.7 (3.5) 0.8 3.7 388.4 388.6 NII Q1 19 Loans Deposits Bonds &

• ther

Funding Days effect NII Q2 19

NII q-o-q evolution (€ mn)

• Net Interest Income’s negative impact from Loans has

been counterbalanced by the positive effect from the lower Deposits and Wholesale funding cost

• Net Interest margin remained stable q-o-q at 2.5%
• New loan disbursements in Greece at €1.5bn for H1

2019 vs €1.3bn in H1 2018

+€0.2mn NIM% 2.5% 2.5% 40.1 39.9 Q1 19 Q2 19

Average net loans balances (€ bn) Funding cost rates (bps)

112 98 88 80 70 66 65 61 59 56 (32) (32) (31) (31) (35) (40) (40) (40) (40) (37) Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Average Repos Cost Time Deposits rates 3M Euribor (period ending) Average ECB Cost Spread 408 407 € bn Q1 Q2 H1 2019 0.6 0.9 1.5 2018 0.6 0.7 1.3

New disbursements (€ bn)

• €0.2bn

9M 2013 Results FY 2013 Results 16 16 H1 2019 Results

Fee and Commission income up by €11mn q-o-q, supported by cards performance

Q2 2019 Net Fees & Commissions stood at €81.2mn, increased by €11mn, mainly due to:

• higher volume of cards’ transactions mainly due to tourism
• increased new loan disbursements
• better asset management fees as well as other banking

transactions’ fees Fee income is expected to strengthen in H2 2019 mainly due to:  increased new loan disbursements  increased card volumes benefiting from the tourist season  enhanced asset management and bancassurance fees

Net Fee & Commission Income evolution q-o-q (€ mn)

56.2 4.4 3.3 0.9 64.8 12.4 0.7 1.2 14.3 1.7 0.4 2.1 70.2 81.2

Q1 19 Cards Loans Other Commercial Banking Bancassurance & Private Banking Asset Mgmt IB & Brokerage Q2 19

Commercial Banking Asset Gathering & Bancassurance IB & Brokerage +€11mn 28.3 26.7 H1 19 4.2 134.3 H1 18 3.7 121.0 166.8 151.4

H1 2019 Fees stood at Euro 151.4 million, a yearly reduction of 9.2%, mostly attributed to:

• the extraordinary fees from credit cards

recorded in Q1 2018

• weakness in asset management activity

in Q1 2019, having thereafter improved

• €15.4mn
• 9.2%

Net Fee & Commission Income evolution y-o-y (€ mn)

Commercial Banking Asset Gathering & Bancassurance IB & Brokerage

9M 2013 Results FY 2013 Results 17 17 H1 2019 Results

Recurring Operating expenses decreased by -2.5% on a yearly basis

• General expenses increased compared to Q1, mainly as a

result of higher consulting fees and marketing expenses

• Staff costs’ quarterly increase stemming mainly from salary

adjustments in Romania and Cyprus

Recurring OPEX q-o-q (€ mn)

252 (26) 226 234 (9) 225 50 22 72 444 426 92 97 536 523 H1 18 H1 19 H1 18 General expenses Staff costs Depreciation & Amortisation H1 19

• €13mn or -2.5%

Recurring OPEX y-o-y (€ mn)

• General expenses decreased by €26mn or -10.4% y-o-y,

reflecting:  lower NPL remedial management costs and  the transfer of a rent expense of €18.8mn mostly to depreciation following IFRS 16 adoption1. Adjusted for IFRS 16 impact, H1 2019 General expenses were reduced by -3.2% y-o-y

• Staff costs down by 3.9% y-o-y, as a result of previous

year’s VSS

536 523 110 7 116 112 2 113 35 2 37 256 267 Q1 19 General expenses Staff costs Depreciation & Amortisation Q2 19 +€10mn or +4% General expenses Staff Costs Depreciation & amortisation General expenses Staff Costs Depreciation & amortisation Greece Abroad Greece Abroad

• 10.4%
• 4%

1 IFRS16 implementation impacted General expenses by €18.8mn (rent expense) in H1 2019 and Depreciation and amortization by €16.9mn

9M 2013 Results FY 2013 Results 18 18 H1 2019 Results

Greek deposits maintain their positive pace with €0.3bn in Q2 2019; adding to further improvement of the liquidity profile

Group deposits on positive trend (€ bn)

31.5 33.0 0.9 (0.6) 33.3 5.6 5.9 0.1 6.0 37.1 38.9 39.3 Jun-18 Mar-19 Customer deposits State deposits Abroad Jun-19 Greece Abroad +€2.2bn

1

Greece

Evenly split between individuals and business

Repos (€ bn)

6.7 6.2 Mar-19 Jun-19 Repos

ECB funding (€ bn)

3.1 4.1 Mar-19 Jun-19 ECB +€1.0bn

• €0.5bn

113% 107% 106% 104% 103% 111% 106% 104% 103% 102% Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Greece Group

Loan to Deposit ratio evolution (%)

• Customer deposits in Greece increased by €0.9bn during the

second quarter of 2019 as a result of inflows in both businesses and households

• Individual deposits recorded inflows from both affluent and mass

clientele

• ECB funding increased in Q2 following the assignment of

Investment Grade rating to our retained covered bond programme

9M 2013 Results FY 2013 Results 19 19 H1 2019 Results

NPE reduction accelerates in Q2 2019

24.6 21.9 (0.2) (0.4) 21.3 Jun-18 Dec-18 Q1 19 Q2 19 Jun-19

NPE Reduction – Greece (€ bn)

Note: Gross formation including curings, repayments, liquidations and debt forgiveness

0.66 0.68 0.66 0.68 0.48 (0.79) (0.64) (1.13) (0.74) (0.86) Q2 18 Q2 19 Q3 18 Q1 19 Q4 18 (0.47) (0.13) (0.38) Gross Formation 0.04 (0.06)

Negative gross formation in Greece (€ bn) NPE reduction plan (Solo basis) (€ bn)

21.0 3.7 16.2 Jun-19 Actual Q3 19 Q4 19 Sales Q4 19 Dec-19 Target

• €4.8bn
• €3.3bn

Entries Exits

Organic reduction

Project Orion

• €1.9bn Securitisation
• f retail loan portfolio

secured with residential real estate assets

NPE sales transactions

c.€1.1bn

Organic reduction

Project Neptune

• Sale of €1.8bn

SMEs loan portfolio

secured with real estate assets

9M 2013 Results FY 2013 Results 20 20 H1 2019 Results

Negative gross NPE formation in Greece across segments

(90) 65 (1,070) (186) (117) (193) Q2 18 Q3 18 Mercury & Jupiter Sale Q4 18 Q1 19 Q2 19 (42) (28) (983) (286) 60 (189) Q2 18 Q3 18 Jupiter Sale Q4 18 Q1 19 Q2 19

Gross formation – Wholesale (€ mn) Gross formation – Retail (€ mn) Gross formation - SBL (€ mn) Gross formation - Mortgages (€ mn) Gross formation - Consumer (€ mn)

(110) (21) (450) (109) (88) (81) Q2 18 Q3 18 Mercury Sale Q4 18 Q1 19 Q2 19 15 38 (42) (131) (63) (102) Q2 18 Q3 18 Mercury & Jupiter Sale Q4 18 Q1 19 Q2 19 6 48 (480) 54 33 (11) Q2 18 Q3 18 Mercury & Jupiter Sale Q4 18 Q1 19 Q2 19

Note: Gross formation including curings, repayments, liquidations and debt forgiveness

9M 2013 Results FY 2013 Results 21 21 H1 2019 Results

Group Cost of Risk at 1.9%; NPE cash coverage at 47%

2.7% 2.5% 2.2% 3.3% 1.9% 1.9% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19

1 Excluding impairment losses related to upcoming transactions in Q4 2018 2 Provisions include €101.2mn for off balance sheet items as of June 2019

47% 47% Mar-19 Jun-19 69% 69% Mar-19 Jun-19

• In Q2 2019, Group cost of risk (incl. modification losses) came

at 1.9% over Gross loans

• Loans’ impairment losses for the quarter stood at €246mn,

including modification losses, mainly stemming from provisions in the retail segment as well as individually assessed loans in wholesale

• NPE cash coverage at 47% in Q2 19. NPL cash coverage at

69%, in June 2019

1

Group CoR incl. modification losses (over Gross loans) Group NPL Coverage Group NPE coverage

Total Coverage

101% 121%

2 2

101% 120%

Total Coverage Group NPE cash coverage Wholesale 57% SBL 45% Mortgage 33% Consumer 59% Group NPL cash coverage Wholesale 97% SBL 57% Mortgage 45% Consumer 94%

• Key Highlights
• Macroeconomic Update
• H1 19 Financial Performance
• Appendix

 Asset Quality  Capital  Volumes  P&L

H1 2019 Results

9M 2013 Results FY 2013 Results 23 23 H1 2019 Results

Update on ongoing NPE transactions

Project Neptune

Sale of SMEs loan portfolio secured with real estate assets

On balance sheet GBV

• f €1.8bn

Real estate collateral consists mainly of commercial and residential RE

• f €1.1bn MV

More than 4k properties

Project Orion

Securitisation

• f retail loan portfolio

secured with residential real estate assets

On balance sheet GBV

• f €1.9bn

Real estate collateral consists mainly of residential RE

• f €2.1bn MV

More than 23k properties

9M 2013 Results FY 2013 Results 24 24 H1 2019 Results

Auctions and repossession activity evolution

17% 83% 3rd parties Alpha Bank

1 Figures adjusted for CAPEX, depreciation and impairment incurred during 2018 2 Refers to book value of sold assets and not received consideration

• H1 2019 auction activity has been slower than anticipated, also as large

number of auctions suspended by ministerial decision, due to election period

• 83% of successfully auctioned properties have been acquired by Alpha
• In H1 2019, amongst others, the Bank concluded:

 the sale of 100% of the shares of Alpha Investment Properties I A.E. (Project Altion) and  a single asset transaction of €8.5mn in Greece, during Q2 2019

• The Bank has further extended the range of specialized asset management

and commercialization channels to facilitate the sale of its real estate assets

Sales (incl. Jupiter) REO Portfolio 31.12.18 55

• 15

Acquisitions

• 89

Sales REO Portfolio 30.6.19 161 REO Portfolio 31.12.17 Acquisitions

• 64
• 48

REO portfolio 3,3k properties

• f €0.75bn value

1

€0.8bn €0.8bn €0.7bn

Auctioned properties REO portfolio evolution (entries/ exits) – Greece (€ mn)

2

Successfully auctioned properties breakdown by highest bidder

1.313 38% 2018 36% H1 2019 3.489 unsuccessfully successfully auctioned

9M 2013 Results FY 2013 Results 25 25 H1 2019 Results

NPL stock in Greece down by €2.5bn y-o-y

16.5 14.9 14.6 14.2 13.9 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19

• €2.5bn

NPL balances evolution – Greece (€ bn) Wholesale Gross NPL formation – Greece (€ mn)

Note: Gross formation including curings, repayments, liquidations and debt forgiveness

Retail Gross NPL formation per segment – Greece (€ mn)

(14) (21) (675) (43) 142 103 Q2 18 Q3 18 Jupiter Sale Q4 18 Q1 19 Q2 19

(43) (21) (429) (229) (166) (106) Q2 18 Q3 18 Mercury Sale Q4 18 Q1 19 Q2 19

SBL

49 215 (41) (251) (163) (120) Q2 18 Q3 18 Mercury & Jupiter Sale Q4 18 Q1 19 Q2 19

Mortgages

64 25 (507) 226 (22) (103) Q2 18 Q3 18 Mercury & Jupiter sale Q4 18 Q1 19 Q2 19

Consumer

70 218 (600) (254) (351) (329) Q2 18 Q3 18 Mercury & Jupiter sale Q4 18 Q1 19 Q2 19

Retail

9M 2013 Results FY 2013 Results 26 26 H1 2019 Results 4.8 1.8 3.0 3.1 0.7 13.4 3.1 1.2 0.9 1.3 1.1 7.6 7.9 3.0 3.9 4.4 1.8 21.0 MortgagesConsumer SBLs SMEs Corporates Total Performing NPLs

NPL Workout Units Analysis and Group forborne loans

Retail €14.8bn Wholesale €6.2bn

1 Including leasing, factoring and International Unit Greece

• Retail NPL Unit manages all retail exposures which are >1dpd and total

€14.8bn

• In retail 2,238 FTEs broken down in

 648 in Retail NPL Unit  484 in branches  1,106 in collection and legal firms

• WHL NPL Unit manages €6.2bn, out of which €2.4bn are performing loans1
• In wholesale c.129 FTEs broken down in (legal outsourcing excluded):

 Management, Support Division , Transactions Division & WHL NPL Monitoring team: 43 FTEs  Special Credit Division: 51 FTEs  Permanent arrears Division: 35 FTEs 13.9 0.6 9.6 3.8 30.1 22.5 5.2 2.4 44.1 23.1 14.8 6.2 Total Loans Greece Non-NPL Management Units Retail NPL Management Unit WHL NPL Management Unit Performing NPLs FPE 25% FNPE >90dpd 35% FNPE 31-90dpd 10% FNPE 1-30dpd 7% FNPE 0dpd 23% €18.7bn

Loans perimeter managed by NPL Units (€ bn) NPL Workout Units balances breakdown by segment (€ bn) Forborne loans breakdown June 2019 – Group (€ bn)

9M 2013 Results FY 2013 Results 27 27 H1 2019 Results

Detailed overview of Alpha Bank’s asset quality by portfolio – Greece

(€ bn) Wholesale SBL Mortgages Consumer Total Gross loans 19.2 4.9 14.8 5.1 44.1 (-) Provisions (3.9) (1.7) (2.1) (1.8) (9.7) Net loans 15.2 3.2 12.7 3.3 34.4 NPLs 3.8 3.0 5.2 1.9 13.9 NPL ratio 19.9% 61.3% 35.0% 37.2% 31.6% NPEs 6.9 3.9 7.4 3.1 21.3 NPE ratio 35.9% 78.1% 50.1% 61.2% 48.3% NPL collateral 2.0 1.3 3.6 0.5 7.4 NPE collateral 4.0 1.8 5.4 0.7 11.9 Coverage ratio NPLs 3.8 3.0 5.2 1.9 13.9 (+) Forborne NPLs < 90 dpds 2.7 0.8 2.2 1.2 6.9 (+) Unlikely to pay 0.4 0.0 0.0 0.0 0.5 NPEs 6.9 3.9 7.4 3.1 21.3 Forborne NPLs >90dpd 1.1 0.8 2.1 1.3 5.2 Forborne NPLs <90dpd 2.7 0.8 2.2 1.2 6.9 Performing forborne 0.7 0.5 3.0 0.4 4.5 Total forborne 4.4 2.1 7.2 2.9 16.7

Note: Provisions include €90.8mn for off balance sheet items as of June 2019

103% 57% 57% 45% 41% 29% 96% 59% 69% 45% 52% 58% 43% 46% 70% 73% 27% 22% 53% 56%

155% 115% 101% 91% 111% 101% 124% 81% 123% 101%

NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE

Collateral Cash

9M 2013 Results FY 2013 Results 28 28 H1 2019 Results

Detailed overview of Alpha Bank’s asset quality by portfolio – Group

(€ bn) Wholesale SBL Mortgages Consumer Total Gross loans 22.6 5.0 18.1 5.7 51.3 (-) Provisions (4.8) (1.8) (3.0) (2.0) (11.5) Net loans 17.8 3.3 15.0 3.7 39.8 NPLs 4.9 3.1 6.7 2.1 16.8 NPL ratio 21.9% 61.3% 36.9% 37.1% 32.7% NPEs 8.4 3.9 9.0 3.4 24.7 NPE ratio 37.1% 78.0% 50.0% 59.3% 48.1% NPL collateral 2.5 1.3 4.2 0.6 8.6 NPE collateral 4.7 1.8 6.1 0.8 13.4 Coverage ratio NPLs 4.9 3.1 6.7 2.1 16.8 (+) Forborne NPLs < 90 dpds 3.0 0.8 2.3 1.2 7.4 (+) Unlikely to pay 0.4 0.0 0.0 0.0 0.5 NPEs 8.4 3.9 9.0 3.4 24.7 Forborne NPLs >90dpd 1.5 0.8 2.9 1.4 6.6 Forborne NPLs <90dpd 3.0 0.8 2.3 1.2 7.4 Performing forborne 0.7 0.5 3.1 0.4 4.7 Total forborne 5.2 2.1 8.3 3.0 18.7

Note: Provisions include €101.2mn for off balance sheet items as of June 2019

97% 57% 57% 45% 45% 33% 94% 59% 69% 47% 51% 56% 43% 46% 64% 68% 27% 23% 51% 54%

147% 113% 100% 91% 109% 101% 121% 82% 120% 101%

NPL NPE NPL NPE NPL NPE NPL NPE NPL NPE

Collateral Cash

• Key Highlights
• Macroeconomic Update
• H1 19 Financial Performance
• Appendix

 Asset Quality  Capital  Volumes  P&L

H1 2019 Results

9M 2013 Results FY 2013 Results 30 30 H1 2019 Results

Group RWA and CET1 capital

8,389 7,945 8,454 8,459 8,469 (444) (569) 1,078 5 11

Ordinary Equity Intangibles Tangible book value DTA Deduction from CET1 IFRS9 & Other CET1 capital Hybrids Tier 1 Lower Tier II Total CAD

12.7% Tangible book value / Tangible Assets 3.8 3.8 47.8 43.0 1.0 Mar-19 Credit 42.8 Jun-19 47.6 1.0 (0.3) Credit Market Operational 66% 104% 79%

Performing NPE Total Loan Portfolio RWA Density

1.0 0.8 3.2 3.2 0.3 4.5 Jun-19 (phased-in) Jun-19 (fully-loaded) 4.0 TC IFRS9 Other DTA €8.5bn CET 1 €6.9bn DTA 250% RWf DTC 100% RWf

Group Risk Weighted Assets (€ bn) Credit Risk Weights per portfolio Equity to regulatory capital bridge June 2019 (€ mn) DTA and Tax Credit within CET1 capital (€ bn)

• Key Highlights
• Macroeconomic Update
• H1 19 Financial Performance
• Appendix

 Asset Quality  Capital  Volumes  P&L

H1 2019 Results

9M 2013 Results FY 2013 Results 32 32 H1 2019 Results

61.6

Balance Sheet composition

3.0 8.2 0.8 20.9 18.0 7.5 3.1 0.0 Mar-19 3.3 8.4 0.9 21.9 17.3 6.9 4.1 0.0 Jun-19 3.6 5.2 0.9 39.9 8.1 3.0 2.3 Jun-19 Due to Banks

• excl. ECB/ELA

39.3 Net loans PPE DTA Other Securities Cash Due from Banks 38.9 ELA ECB Time deposits Core deposits Debt securities Equity Other Net loans PPE DTA Other Securities Cash Due from Banks Due to Banks

• excl. ECB/ELA

ELA ECB Time deposits Core deposits Debt securities Equity Other 63.0

Asset split (€ bn) Liabilities and Equity split (€ bn)

3.4 5.3 0.9 39.9 7.8 2.5 1.8 Mar-19 61.6 63.0

9M 2013 Results FY 2013 Results 33 33 H1 2019 Results

Business Volumes

(€ mn) Jun 2019 Mar 2019 Dec 2018 Sep 2018 Jun 2018 % Jun 2019/ Jun 2018 Group Gross Loans 51,325 51,832 52,462 53,242 55,432 (7.4%) Mortgages 18,052 18,311 18,561 18,863 18,955 (4.8%) Consumer Loans 4,402 4,418 4,446 4,492 4,902 (10.2%) Credit Cards 1,280 1,341 1,456 1,385 1,521 (15.8%) Small Business Loans 5,008 5,092 5,186 5,298 5,770 (13.2%) Medium and Large Business Loans 22,583 22,670 22,813 23,203 24,284 (7.0%)

• f which:

Greece 44,087 44,395 44,924 45,369 47,453 (7.1%) Mortgages 14,844 15,060 15,277 15,538 15,667 (5.3%) Consumer Loans 3,885 3,906 3,926 3,957 4,371 (11.1%) Credit Cards 1,244 1,306 1,419 1,350 1,485 (16.2%) Small Business Loans 4,938 5,022 5,117 5,229 5,701 (13.4%) Medium and Large Business Loans 19,175 19,100 19,185 19,296 20,229 (5.2%)

• f which: Shipping Loans

1,979 2,074 2,020 1,956 1,904 3.9% Southeastern Europe 6,845 7,055 7,195 7,550 7,672 (10.8%) Accumulated Provisions1 (11,518) (11,990) (12,327) (12,579) (14,316) (19.5%) Group Net Loans 39,913 39,948 40,228 40,751 41,207 (3.8%) Customer Assets 44,475 43,920 43,579 43,626 42,271 5.2%

• f which:

Group Deposits 39,263 38,937 38,732 38,581 37,059 5.9% Sight & Savings 21,923 20,909 20,777 20,670 19,877 10.3% Time deposits & Alpha Bank Bonds 17,340 18,027 17,955 17,911 17,182 0.9% Greece 33,271 33,017 32,685 32,724 31,493 5.6% Sight & Savings 19,542 18,633 18,482 18,518 17,900 9.2% Time deposits & Alpha Bank Bonds 13,729 14,384 14,203 14,206 13,594 1.0% Southeastern Europe 5,226 5,143 5,179 5,035 4,795 9.0% Money Market Mutual Funds 192 219 233 266 294 (34.7%) Other Mutual Funds 1,526 1,364 1,250 1,367 1,394 9.5% Private Banking 3,495 3,400 3,363 3,412 3,525 (0.9%)

1 Accumulated Provisions include €101.2mn for off balance sheet items as of June 2019

9M 2013 Results FY 2013 Results 34 34 H1 2019 Results Passenger 5% Containers 11% Product Tankers 11% Panamax 4% Aframax 5% Suezmax 8% VLCC 5% Handy max/ Handy size 21% Panamax 21% Capesize 9% Tankers 33% Dry Bulk 51% €2.0bn

Breakdown of loans portfolio – June 2019

Wholesale loans 44% SBLs 10% Consumer loans 9% Credit Cards 2% Mortgages 35% €51.3bn Households 46% Trade 14% Manufacturing 11% Construction 7% Transportation 5% Leisure 5% Real Estate 4% Electric Supply 2% Other 7%

• €2.0bn of exposure, to top-names
• The portfolio is split into tankers by 33%, containers

11%, passenger 5% and the rest is dry bulk

• Duration of loan portfolio at 5 years

Group loans breakdown Loans portfolio structure – Group

€51.3bn

Shipping loans portfolio structure

9M 2013 Results FY 2013 Results 35 35 H1 2019 Results

New financing of €1.5bn in H1 2019; Securities at €8.1bn

• Loan disbursements of €1.5bn in H1 2019
• 93% to business, 7% to individuals
• Business disbursements primarily towards sectors that drive

the economy such as manufacturing, trade, transportation and tourism € mn Q1 2018 Q2 2018 H1 2018 Q1 2019 Q2 2019 H1 2019 Individuals 33 34 67 48 51 99 Business 570 701 1,271 567 842 1,409 Total 603 734 1,337 615 893 1,508

Trade 20% Manufacturing 18% Transportation 16% Tourism 12% Real Estate 7% Energy 7% Construction 7% Media & Communication 1% Other 11% €1.4bn

New disbursements - per category H1 2019 Business disbursements - per sector

Greek sovereign securities 57% EU government securities 17% Corporates & banks securities 25%

Securities breakdown (Book Value) – June 2019

€8.1bn

9M 2013 Results FY 2013 Results 36 36 H1 2019 Results

Deposits flow per quarter

31.5 32.7 32.7 33.0 33.3 0.6 (0.0) 0.1 0.9 0.6 (0.0) 0.2 (0.6) Jun-18 Core Time Sep-18 Core Time Dec-18 Core Time Mar-19 Core Time Jun-19 Δ Time Δ Core 31.5 32.7 32.7 33.0 33.3 0.7 (0.4) 0.2 (0.1) 0.5 0.4 0.1 0.4 Jun-18 Bus. Indiv. Sep-18 Bus. Indiv. Dec-18 Bus. Indiv. Mar-19 Bus. Indiv. Jun-19 Δ Individuals Δ Business Q1: €0.3bn Core 59% Time 41% Q3: €1.2bn Q4: (€0.0bn)

Alpha Bank deposits evolution in Greece (€ bn) Alpha Bank deposits evolution in Greece (€bn) Deposits breakdown – June 2019 Deposits breakdown – June 2019

Individuals 71% Business 29% Q2: €0.3bn

Note: Business deposits including State deposits

1 Including an outflow of €0.6bn of state deposits in Q2 2019

1

9M 2013 Results FY 2013 Results 37 37 H1 2019 Results

Wealth Management evolution

226 248 284 2,692 2,818 2,893 1,442 1,246 1,185 4,361 4,313 4,361 Jun-17 Jun-18 Jun-19 Discretionary Advisory Execution Only

Asset Management balances (€ mn) Alpha Private Bank balances (€ mn)

222 522 607 1,037 1,070 1,280 273 191 90 1,532 1,783 1,977 Jun-17 Jun-18 Jun-19 Money Market Mutual Funds Non Money Market Mutual Funds Other AUM

• Key Highlights
• Macroeconomic Update
• H1 19 Financial Performance
• Appendix

 Asset Quality  Capital  Volumes  P&L

H1 2019 Results

9M 2013 Results FY 2013 Results 39 39 H1 2019 Results

PPI and NII breakdown

(54) (53) (51) (50) (49) (6) (17) (17) (17) (16) 436 427 428 396 398 83 70 67 59 55 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Bonds & other Loans Funding Depos 553 513 522 469 481 (270) (272) (279) (256) (267) 282 241 243 213 214 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Core Operating Income Recurring OPEX Core PPI

1 Funding cost in Q2 2018 included €17million one-off benefit from the retrospective application in ECB’s TLTRO funding rate 1

388 459 427

NII decomposition (€ mn) Core PPI breakdown (€ mn)

427 389

9M 2013 Results FY 2013 Results 40 40 H1 2019 Results

Loan and deposit spreads

950 930 928 887 897 694 675 659 620 600 422 414 416 418 422 407 400 412 400 400 255 245 257 253 251 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Consumer Credit Small Business Loans SEE Medium & Large Business Mortgages

(45) (29) (21) (16) (15) (33) (33) (30) (32) (34) (93) (90) (87) (86) (81)

Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 SE Europe Sight and Savings Time Deposits

(€ billion) End of quarter balances (bps) (bps) End of quarter balances

41.2 40.8 40.2 39.9 39.9 426 415 423 408 407 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Net Loans Group loans spread

(€ billion)

44% 56% % Total

Deposit mix & cost evolution Net loan balances & spreads Deposit spreads (Greece and SEE, bps) Lending spreads (Greece and SEE, bps)

19.9 20.7 20.8 20.9 21.9 17.2 17.9 18.0 18.0 17.3 37.1 38.6 38.7 38.9 39.3 (57) (54) (51) (50) (49) Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Core deposits Time deposits Group deposits spread

9M 2013 Results FY 2013 Results 41 41 H1 2019 Results

Operating expenses

1,032 897 721 670 629 613 606 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Mar-19 Jun-19

Bulg

• 83

FYROM

• 18

15,202 13,856 11,863 11,727 11,314 11,322 11,295 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Mar-19 Jun-19

Bulg

• 744

FYROM

• 240

VSS Cy

• 249

Greece 9,570 9,687 8,888 8,667 8,147 8,165 8,145

Serbia

• 836

Serbia

• 67

Hilton

• 323

1 Includes corporate and private banking centers

VSS Gr

• 2,208

VSS Gr

• 523

118 116 115 112 113 128 131 137 110 116 25 26 26 35 37 270 272 279 256 267 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Depreciation & amortisation expenses General expenses Staff costs € mn H1 18 H1 19 yoy % Staff costs (234) (225) (3.9%) General expenses (252) (226) (10.4%) Depreciation and amortisation expenses (50) (72) 44.5% Recurring OPEX (536) (523) (2.5%) Extraordinary/one-off costs (12) (21) … Total OPEX (548) (544) (0.8%)

Recurring OPEX Evolution (€ mn) Branches (€ mn) Employees (€ mn)

Greece1 628 626 533 483 443 426 420

9M 2013 Results FY 2013 Results 42 42 H1 2019 Results

SEE Operations 1

1 Country View

(€ million) Δ% Δ% Δ% Δ% Jun-19 Cyprus yoy Romania yoy Albania yoy Total SEE yoy Deposits 2,264 2.4% 2,447 16.3% 515 7.0% 5,226 9.0% Gross Loans 3,920 (17.6%) 2,631 1.3% 295 (6.8%) 6,845 (10.8%) Mortgages 1,988 (6.3%) 1,135 5.6% 71 0.1% 3,194 (2.3%) Consumer Credit 251 (6.2%) 240 (1.9%) 33 11.3% 524 (3.3%) Businesses 1,681 (29.0%) 1,256 (1.7%) 191 (11.5%) 3,128 (19.0%) NPE ratio 78.9% 8.0% 18.6% NPE Cash coverage 55% 70% 37% NPE Total coverage 98% 137% 131% NPL ratio 68.6% 3.7% 13.4% NPL Cash coverage 63% 148% 52% NPL Total coverage 104% 209% 143% Total Operating Income 53.2 16.5% 68.7 6.6% 9.9 52.2% 131.8 13.0% Operating Expenses (pre-O/H allocation) (31.5) 10.7% (52.7) 9.7% (8.0) 1.2% (92.2) 9.3% Impairment Losses (40.7) (73.1%) (6.1) … 1.3 … (48.1) (68.3%) Profit Before Tax (pre- O/H allocation) (19.1) … 9.9 … 0.6 … (8.6) … Branches 22 130 33 185 (1) Employees 695 1,961 418 3,074 24

9M 2013 Results FY 2013 Results 43 43 H1 2019 Results

SEE Operations / Cyprus

Deposits y-o-y (€ bn)

2.2 2.3 Jun-18 Jun-19

Gross loans y-o-y (€ bn)

4.8 3.9 Jun-18 Jun-19

• €0.8bn

NPEs y-o-y (€ bn)

3.9 3.1 Jun-18 Jun-19

NPLs y-o-y (€ bn)

3.0 2.7 Jun-18 Jun-19

• €0.8bn
• €0.3bn

Cyprus Jun-19 Branches 22 Employees 695

PPI y-o-y (€ mn)

17.2 21.6 H1 2018 H1 2019

PBT y-o-y (€ mn)

(134.2) (19.1) H1 2018 H1 2019

Note: PPI and PBT pre-Overhead allocation

Cyprus Main Macroeconomic Indices 2017 2018 2019E GDP growth 4.5% 3.9% 2.9% Unemployment 11.1% 8.4% 6.7% Harmonised Index

• f Consumer Prices (HICP)

0.7% 0.8% 0.5%

Source: European Commission, European Economic Forecast, Spring 2019 (May 2019) and Summer 2019 (July 2019)

+€0.1bn

9M 2013 Results FY 2013 Results 44 44 H1 2019 Results

SEE Operations / Romania

Deposits y-o-y (€ bn)

2.1 2.4 Jun-18 Jun-19

Gross loans y-o-y (€ bn)

2.6 2.6 Jun-18 Jun-19

NPEs y-o-y (€ bn)

0.3 0.2 Jun-18 Jun-19

NPLs y-o-y (€ bn)

0.2 0.1 Jun-18 Jun-19

• €0.1bn
• €0.1bn

+€0.3bn

PPI y-o-y (€ mn)

16.5 16.0 H1 2018 H1 2019

PBT y-o-y (€ mn)

15.6 9.9 H1 2018 H1 2019

Note: PPI and PBT pre-Overhead allocation

Romania Jun-19 Branches 130 Employees 1,961 Romania Main Macroeconomic Indices 2017 2018 2019E GDP growth 7.0% 4.1% 4.0% Unemployment 4.9% 4.2% 4.1% Harmonised Index

• f Consumer Prices (HICP)

1.1% 4.1% 4.2%

Source: European Commission, European Economic Forecast, Spring 2019 (May 2019) and Summer 2019 (July 2019)

9M 2013 Results FY 2013 Results 45 45 H1 2019 Results

SEE Operations / Albania

Deposits y-o-y (€ bn)

0.5 0.5 Jun-18 Jun-19

Gross loans y-o-y (€ bn)

0.3 0.3 Jun-18 Jun-19

NPEs y-o-y (€ bn)

0.1 0.1 Jun-18 Jun-19

NPLs y-o-y (€ bn)

0.0 0.0 Jun-18 Jun-19

PPI y-o-y (€ mn)

(1.4) 1.9

PBT y-o-y (€ mn)

(1.0) 0.6 H1 2018 H1 2019

Note: PPI and PBT pre-Overhead allocation

H1 2018 H1 2019

Albania Jun-19 Branches 33 Employees 418 Albania Main Macroeconomic Indices 2017 2018 2019E GDP growth 3.8% 4.1% 3.8% Unemployment 14.1% 12.8% 11.9% Harmonised Index

• f Consumer Prices (HICP)

2.0% 2.0% 2.5%

Source: European Commission, European Economic Forecast, Spring 2019 (May 2019) and Summer 2019 (July 2019)

9M 2013 Results FY 2013 Results 46 46 H1 2019 Results

Alpha Bank Group

(€ mn) Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 qoq% change yoy % change Net interest income 388.6 388.4 426.6 426.6 459.0 0.1% (15.3%) Net fee and commission income 81.2 70.2 85.7 77.6 83.5 15.6% (2.8%) Income from financial operations 123.7 73.8 64.3 134.8 77.5 … … Other Income 10.9 0.9 22.7 8.9 10.2 … … Operating Income 604.4 533.3 599.3 647.9 630.2 13.3% (4.1%) Staff costs (113.5) (111.5) (115.1) (115.7) (117.7) 1.7% (3.6%) General expenses (116.5) (109.6) (137.4) (130.9) (127.7) 6.2% (8.8%) Depreciation and amortization expenses (36.7) (35.2) (26.5) (25.8) (24.9) 4.4% 47.3% Recurring Operating expenses (266.6) (256.3) (278.9) (272.4) (270.2) 4.0% (1.3%) Integration costs 0.0 0.0 (0.2) (0.1) (0.1) … … Extraordinary costs (15.1) (5.6) (55.9) (0.8) (8.8) … … Total Operating expenses (281.7) (262.0) (334.9) (274.0) (279.4) 7.5% 0.8% Impairment losses on loans 1 (246.0) (242.6) (704.0) (297.4) (348.7) 1.4% (29.5%) Other impairment losses 1 (8.6) 22.2 (13.6) (16.2) (8.1) … … Profit / (Loss) before income tax 68.0 51.0 (453.2) 60.3 (6.0) … … Income Tax (8.7) (23.6) 452.4 (19.2) (46.8) … … Profit / (Loss) after income tax from continuing

• perations

59.4 27.5 (0.8) 41.1 (52.8) … … Profit / (Loss) attributable to shareholders 59.4 27.5 (0.9) 41.2 (52.8) … … Net interest Margin (NIM) 2.5% 2.5% 2.8% 2.9% 3.1%

1 Restated as modification losses reclassified from “Other Impairment Losses” to “Impairment Losses on Loans” line

9M 2013 Results FY 2013 Results 47 47 H1 2019 Results

Group Results by Business Unit

(€ mn) Retail Commercial & Corporate SE Europe Investment Banking & Treasury Asset Management Other Group Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun Jan-Jun

2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

Operating Income 400.3 505.2 316.3 373.0 131.8 116.6 253.8 355.1 32.9 30.3 2.5 (28.9) 1,137.7 1,351.3 Net Interest Income 349.5 436.2 261.4 308.3 103.8 96.6 54.1 66.9 6.3 4.1 1.9 (9.3) 777.0 902.8 Net fee and Commission Income 48.1 52.7 58.1 68.7 15.1 14.3 9.1 7.2 21.0 23.8 (0.0) (0.0) 151.4 166.7 Income from Financial Operations 1.5 15.3 (9.8) (9.9) 6.3 2.0 188.3 278.4 5.6 3.1 5.6 (25.3) 197.5 263.6 Other Income 1.3 1.0 6.6 6.0 6.6 3.7 2.4 2.5 (0.0) (0.7) (5.0) 5.7 11.8 18.2 Operating Expenses (299.5) (318.4) (91.3) (89.1) (99.6) (91.2) (15.1) (14.6) (17.0) (15.8) (21.1) (19.2) (543.7) (548.3) Staff Costs (126.4) (131.5) (40.8) (41.8) (44.5) (42.5) (6.2) (6.2) (9.1) (9.0) (2.6) (3.1) (229.6) (234.1) General Expenses (135.5) (158.6) (35.2) (35.7) (43.0) (44.0) (7.0) (6.9) (6.0) (5.7) (15.4) (13.5) (242.1) (264.5) Depreciation (37.6) (28.2) (15.3) (11.6) (12.1) (4.7) (1.9) (1.6) (1.8) (1.1) (3.1) (2.6) (71.9) (49.8) Pre Provision Income (PPI) 100.8 186.8 224.9 283.9 32.2 25.5 238.7 340.5 15.9 14.5 (18.6) (48.2) 594.0 803.0 Impairment Losses on Loans 1 (322.0) (400.6) (120.1) (174.9) (48.5) (151.1) 2.0 4.9 0.0 0.0 0.0 0.0 (488.5) (721.7) Other Impairment Losses 1 0.0 0.0 0.0 0.0 0.3 (0.7) 11.8 19.9 1.5 3.0 0.0 0.0 13.6 22.2 Profit / (Loss) before tax (221.1) (213.8) 104.9 109.0 (15.9) (126.4) 252.4 365.3 17.5 17.5 (18.6) (48.2) 119.1 103.5

1 Restated as modification losses reclassified from “Other Impairment Losses” to “Impairment Losses on Loans” line

9M 2013 Results FY 2013 Results 48 48 H1 2019 Results (€ mn) Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Operating Income

203.9 196.5 240.1 237.3 245.6

Net Interest Income

174.1 175.4 202.5 208.5 218.2

Net fee and Commission Income

27.9 20.2 26.6 26.8 26.3

Income from Financial Operations

1.2 0.3 10.4 1.5 0.6

Other Income

0.7 0.6 0.6 0.5 0.5

Operating Expenses

(149.3) (150.2) (157.8) (159.3) (158.8)

Staff Costs

(63.1) (63.3) (62.4) (64.5) (66.0)

General Expenses

(67.6) (67.9) (80.5) (80.1) (78.5)

Depreciation

(18.5) (19.1) (15.0) (14.7) (14.3)

Impairment losses on Loans 1

(175.4) (146.6) (538.2) (118.1) (150.9)

Other Impairment Losses 1

• Profit / (Loss) before tax

(120.8) (100.3) (456.0) (40.1) (64.1)

RWA e

18,119 18,311 18,638 19,095 19,557

Results I Retail Business Unit

1 Restated as modification losses reclassified from “Other Impairment Losses” to “Impairment Losses on Loans” line

9M 2013 Results FY 2013 Results 49 49 H1 2019 Results

Results I Commercial & Corporate Business Unit

(€ mn) Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Operating Income

153.8 162.5 163.9 172.8 195.8

Net Interest Income

130.5 130.9 141.8 147.3 153.2

Net fee and Commission Income

28.9 29.2 38.3 32.0 35.9

Income from Financial Operations

(9.0) (0.8) (19.3) (9.5) 3.5

Other Income

3.3 3.2 3.1 3.0 3.1

Operating Expenses

(46.4) (45.0) (46.8) (47.1) (46.6)

Staff Costs

(20.6) (20.2) (20.5) (20.1) (20.7)

General Expenses

(17.6) (17.6) (20.4) (21.1) (20.0)

Depreciation

(8.2) (7.2) (6.0) (5.9) (5.8)

Impairment losses on Loans 1

(62.1) (58.0) (121.3) (154.2) (118.4)

Other Impairment Losses 1

• Profit / (Loss) before tax

45.3 59.5 (4.3) (28.5) 30.8

RWA e

17,177 17,251 17,371 17,838 18,066

1 Restated as modification losses reclassified from “Other Impairment Losses” to “Impairment Losses on Loans” line

9M 2013 Results FY 2013 Results 50 50 H1 2019 Results

Results I Asset Management Business Unit

(€ mn) Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Operating Income

18.4 14.5 12.1 12.9 14.5

Net Interest Income

3.4 2.9 2.2 1.8 2.0

Net fee and Commission Income

11.3 9.8 10.2 9.9 10.7

Income from Financial Operations

3.7 1.9 (0.4) 1.4 2.1

Other Income

0.0 (0.1) 0.1 (0.3) (0.2)

Operating Expenses

(9.1) (7.9) (8.9) (8.7) (7.9)

Staff Costs

(4.7) (4.4) (4.7) (4.7) (4.6)

General Expenses

(3.4) (2.6) (3.6) (3.4) (2.8)

Depreciation

(1.0) (0.8) (0.6) (0.6) (0.6)

Impairment losses on Loans 1

• Other Impairment Losses 1

(0.7) 2.2 (0.2) (0.9) (0.4)

Profit / (Loss) before tax

8.7 8.8 3.0 3.3 6.2

RWA e

361 356 363 377 397

1 Restated as modification losses reclassified from “Other Impairment Losses” to “Impairment Losses on Loans” line

9M 2013 Results FY 2013 Results 51 51 H1 2019 Results (€ mn) Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Operating Income

148.0 105.8 107.6 172.7 125.0

Net Interest Income

27.4 26.7 27.7 26.6 38.4

Net fee and Commission Income

5.3 3.8 2.7 2.1 3.5

Income from Financial Operations

115.2 73.1 75.4 142.5 81.9

Other Income

0.1 2.3 1.8 1.4 1.3

Operating Expenses

(7.7) (7.4) (7.8) (7.9) (7.5)

Staff Costs

(3.1) (3.1) (3.3) (3.3) (3.2)

General Expenses

(3.6) (3.4) (3.8) (3.7) (3.5)

Depreciation

(1.0) (0.9) (0.7) (0.8) (0.8)

Impairment losses on Loans 1

0.1 1.9 0.8 (0.3) 12.2

Other Impairment Losses 1

(8.9) 20.6 (13.3) (15.3) (7.7)

Profit / (Loss) before tax

131.6 120.8 87.2 149.2 122.0

RWA e

4,860 4,842 4,644 4,060 3,766

Results I Investment Banking & Treasury Business Unit

1 Restated as modification losses reclassified from “Other Impairment Losses” to “Impairment Losses on Loans” line

9M 2013 Results FY 2013 Results 52 52 H1 2019 Results

Results I SE Europe Business Unit

(€ mn) Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Operating Income

67.2 64.6 56.4 60.2 60.4

Net Interest Income

52.6 51.2 51.9 50.6 49.8

Net fee and Commission Income

7.8 7.3 7.7 7.0 7.2

Income from Financial Operations

3.1 3.2 (5.5) 1.0 2.3

Other Income

3.7 2.9 2.4 1.5 1.1

Operating Expenses

(51.0) (48.6) (55.0) (47.8) (45.9)

Staff Costs

(22.6) (21.9) (22.7) (21.5) (21.5)

General Expenses

(22.0) (21.0) (29.6) (23.9) (22.0)

Depreciation

(6.5) (5.6) (2.7) (2.5) (2.3)

Impairment losses on Loans 1

(8.6) (39.8) (45.1) (24.8) (91.6)

Other Impairment Losses 1

0.2 0.1 (0.1) 0.0 (0.0)

Profit / (Loss) before tax

7.8 (23.7) (43.6) (12.5) (77.1)

RWA e

4,835 4,801 4,790 4,805 4,770

1 Restated as modification losses reclassified from “Other Impairment Losses” to “Impairment Losses on Loans” line

9M 2013 Results FY 2013 Results 53 53 H1 2019 Results

Results I Other Business Unit

(€ mn) Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Operating Income

13.1 (10.6) 19.2 (7.9) (11.2)

Net Interest Income

0.6 1.3 0.5 (8.2) (2.6)

Net fee and Commission Income

(0.0) (0.0) 0.2 (0.3) (0.1)

Income from Financial Operations

9.5 (3.9) 3.8 (2.1) (12.9)

Other Income

3.0 (8.0) 14.7 2.6 4.5

Operating Expenses

(18.2) (2.9) (58.6) (3.2) (12.8)

Staff Costs

(1.4) (1.1) (12.0) (1.6) (1.7)

General Expenses

(15.2) (0.2) (45.1) (0.3) (9.9)

Depreciation

(1.6) (1.5) (1.5) (1.3) (1.1)

Impairment losses on Loans 1

• (0.1)
• Other Impairment Losses 1

0.7 (0.7)

• Profit / (Loss) before tax

(4.5) (14.1) (39.5) (11.1) (24.0)

RWA e

2,389 2,208 2,102 1,952 1,826

1 Restated as modification losses reclassified from “Other Impairment Losses” to “Impairment Losses on Loans” line

9M 2013 Results FY 2013 Results 54 54 H1 2019 Results

Terms Definitions Abbreviation 1 Accumulated Provisions or Loan Loss Reserve Accumulated Impairment Allowance, as disclosed for credit risk monitoring purposes LLR 2 Core Operating Income Operating Income (5) less Income from financial operations and other extraordinary items 3 Gross Loans Total gross amount of Loans and Advances to Customers, as disclosed for credit risk monitoring purposes 4 Impairment losses or Loan Loss Provisions Impairment losses and provisions to cover credit risk LLPs 5 Operating Income Total income plus Share of profit/(loss) of associates and joint ventures 6 Recurring Operating Expenses Total Operating Expenses (7) less Integration, Extraordinary Costs and One-Offs Recurring OPEX 7 Total Operating Expenses Total expenses Total OPEX

Glossary

Reconciliation of key Management’s definitions with terms in “Annual report (In accordance with Law 3556/2007)” Alternative Performance Measures Definitions Abbreviation Common Equity Tier 1 ratio (Fully-loaded) Common Equity Tier 1 regulatory capital as defined by Regulation No 575/2013 (Full implementation of Basel 3), divided by total Risk Weighted Assets (RWAs) FL CET 1 ratio Common Equity Tier 1 ratio (Phased-in) Common Equity Tier 1 regulatory capital as defined by Regulation No 575/2013, as amended, based on the transitional rules, divided by total Risk Weighted Assets CET1 ratio Core Pre-Provision Income Core Operating Income (2) for the period less Recurring Operating Expenses (6) for the period Core PPI Cost of Risk Impairment losses (4) for the period divided by the average Gross Loans (3) of the relevant period CoR Deferred Tax Assets Consist of the amounts of income taxes recoverable in future periods in respect of deductible temporary differences, the carryforward of unused tax losses and the carryforward of unused tax credits DTA Deferred Tax Credit The amounts of DTAs that are eligible for conversion into tax credits in specific situations, such as the occurrence of accounting losses (conversion by the proportion of losses vs. total equity), liquidation or insolvency of the credit institution (conversion of all eligible assets) DTC Forborne Exposures Forborne exposures are debt contracts in respect of which forbearance measures have been extended. Forbearance measures consist of concessions towards a debtor facing or about to face difficulties in meeting its financial commitments (“financial difficulties”) Forborne Forborne Non Performing loans (under EBA) Forborne non-performing exposures comprise the following: a) Exposures that are classified as non-performing due to the extension of forbearance measures b) Exposures that were non-performing prior to the extension of forbearance measures c) Forborne exposures which have been reclassified from the forborne performing category, either due to the extension of additional forbearance measures or due to becoming more than 30 days past-due FNPEs Loan Loss Reserves over Loans Accumulated Provisions (1) divided by Gross Loans (4) at the end of the reported period Loan to Deposit ratio Net Loans divided by Deposits at the end of the reported period LDR or L/D ratio Net Interest Margin Net Interest Income for the period, annualised and divided by the average Total Assets of the relevant period NIM Net Loans Gross Loans (3) at the end of the period less Accumulated Provisions (1) at the end of the period Non Performing Exposures Non-performing exposures are those that satisfy either or both of the following criteria: a)Exposures which are more than 90 days past-due b)The debtor is assessed as unlikely to pay its credit obligations in full without realisation of collateral, regardless of the existence of any past- due amount or of the number of days past due NPEs Non Performing Exposure Coverage Accumulated Provisions (1) divided by Non Performing Exposures (NPEs) at the end of the reference period NPE (cash) coverage Non Performing Exposure ratio Non Performing Exposures (NPEs) divided by Gross Loans (3) at the end of the reference period NPE ratio

9M 2013 Results FY 2013 Results 55 55 H1 2019 Results

Glossary

Alternative Performance Measures Definitions Abbreviation Non Performing Exposure Total Coverage Accumulated Provisions (1) including the value of the associated collaterals divided by Non Performing Exposures (NPEs) at the end of the reported period NPE Total coverage Non Performing Loans (under EBA) Τhe part of the Non Performing Exposures (under EBA) that are not classified as Forborne EBA NPLs Non Performing Loans (under IFRS) Non Performing Loans (under IFRS) are considered those if one of the following conditions apply: a) Exposures which are more than 90 days past-due b) Exposures under Legal actions NPLs Non Performing Loan Coverage Accumulated Provisions (1) divided by Non Performing Loans (under IFRS) at the end of the reference period NPL (cash) Coverage Non Performing Loan ratio Non Performing Loans (under IFRS) divided by Gross Loans (3) at the end of the reference period NPL ratio Non Performing Loan Total Coverage Accumulated Provisions (1) including the value of the associated collaterals divided by Non Performing Loans (under IFRS) at the end of the reference period NPL Total Coverage Other Systemically Important Institutions O-SIIs are institutions that, due to their systemic importance, are more likely to create risks to financial stability. Whilst maximizing private benefits through rational decisions, these institutions may bring negative externalities into the system and contribute to market distortions O-SII Overall Capital Requirement OCR includes in addition to the Total SREP Capital Requirements (TSCR) the combined buffers requirements (CBR) defined in point (6) of Article 128 of Directive 2013/36/EU as applicable OCR Property Plant Equipment Definition as per financial statements PPE Pre-Provision Income Operating Income (5) for the period less Total Operating Expenses (7) for the period PPI Recurring Cost to Income ratio Recurring Operating Expenses (6) for the period divided by Core Operating Income (2) for the period C/I ratio Remedial management costs Operating costs related to NPL management initiatives (e.g. collection costs, legal costs etc) Risk Weighted Assets Risk-weighted assets are the bank’s assets and off-balance sheet exposures, weighted according to risk factors based on Regulation (EU) No 575/2013, taking into account credit, market and operational risk RWAs Tangible Book Value per share Tangible Book Value per share is the Total Equity attributable to shareholders excluding Goodwill and other intangible assets, minorities, hybrids and preference shares divided by the outstanding number of shares TBV/share Total Capital Adequacy Ratio Total regulatory capital divided by total Risk Weighted Assets (RWAs), as defined by Regulation No 575/2013 Total CAD Tangible Equity or Tangible Book Value Tangible Equity is the Total Equity attributable to shareholders excluding goodwill, intangibles, minorities, hybrids, preference shares TE or TBV Total Supervisory Review & Evaluation Process Capital Requirement TSCR is composed of the minimum total own fund requirements (8%) and the additional Pillar 2 Requirement (P2R), according to article 16(2) (a) of the Regulation 1024/2013/EU TSCR Unlikely to pay (under EBA) The debtor is assessed as unlikely to pay its credit obligations in full without realisation of collateral, regardless of the existence of any past-due amount or of the number of days past due (Article 178(3) of Regulation (EU) 575/2013) UtP

9M 2013 Results FY 2013 Results 56 56 H1 2019 Results

Alpha Bank Contacts

General Manager – CFO Internet : www.alpha.gr Reuters : ACBr.AT (shares) Bloomberg : ALPHA GA (shares) Alpha Bank Depository Receipts (ADRs) Reuters : ALBKY.PK Bloomberg : ALBKY Lazaros Papagaryfallou cfo-office@alpha.gr +30 210 326 2261 Manager Investor Relations Division Dimitrios Kostopoulos +30 210 326 2271 dimitrios.kostopoulos@alpha.gr Deputy Manager Investor Relations Division Elena Katopodi +30 210 326 2272 elena.katopodi@alpha.gr Senior Investor Relations Officer Stella Traka +30 210 326 2274 stella.traka@alpha.gr Investor Relations Division +30 210 326 2271 +30 210 326 2273 +30 210 326 2277 ir@alpha.gr 40 Stadiou Street, 102 52, Athens