National Bank of Greece Quality and Strength for the Greek - - PowerPoint PPT Presentation

National Bank of Greece

April 2014

Quality and Strength for the Greek Renaissance

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Table of Contents

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Capital Raising Overview Key Investment Highlights Appendices: Greek Macro Environment Finansbank Overview SEE Operations Overview Bank of Greece Stress Test 1 2 A B C D

National Bank of Greece

Capital Raising Overview

4

1

Key Transaction Terms & Rationale

1 NBG CET1 ratio is an estimate by NBG based on its current understanding of CRD IV rules applicable to Greek banking groups, and on the outputs of certain models not yet approved by the Bank of Greece. These rules are new and complex and their implementation may be different from NBG’s current understanding. 2 Subject to regulatory approval. 3 Subject to confirmation by the HCMC.

5

Structure — €2.5bn non pre-emptive primary capital raising, approved by the HFSF — No amendment in the terms of warrants issued in respect of NBG’s ordinary shares — International book-building process for up to €2.5bn Rationale Capital raising addressing conclusively all capital considerations — Covers the immediate capital requirement arising from the Bank of Greece stress test — Shields NBG’s capital position against Basel III fully loaded impact1 — Provides the optionality to repay the €1,350mn of Greek preference shares when appropriate2 Expected Key Dates — 22 April – 2 May: Management roadshow to be followed by international bookbuilding process — 10 May: EGM to approve capital increase; Greek prospectus approval expected on or about 14 May3 — Commencement of trading of new shares on ATHEX expected on or about 21 May Syndicate — Joint Global Coordinators: Goldman Sachs International and Morgan Stanley & Co. International plc.

Compelling Strategic Rationale

1 Subject to regulatory approval.

6

Conclusively address Bank of Greece stress test

1

Strengthen fully loaded Basel III capital position in line with best capitalised European peers

2

Provide optionality to redeem €1,350mn Greek preference shares as and when appropriate1

3

Substantially increase free float and enlarge shareholder base

4

Improve funding capacity, facilitating NBG’s access to debt markets at more favorable terms

5

Reinforce NBG’s position in supporting the recovery of the Greek economy

6

€2.18bn €1.14bn €2.50bn €1.04bn €1.36bn Capital Requirement Identified by BoG (-) BoG Approved Capital Actions² Residual Capital Needs Identified by BoG (+) Additional Capital Strengthening Target Capital Increase Size 7

Capital Increase Addresses Upfront All Capital Considerations

1 Subject to regulatory approval. 2 €1,040m capital actions include the sale of Astir palace (signed in Feb-2014 but not yet completed), the impact of the Voluntary Retirement Scheme (completed in Dec-2013), non-core assets disposals as well as RWAs optimisation in Greece.

• Non-Core Asset Disposals,

RWAs Optimisation

• Executable under a short

timeframe

• Strengthening Basel III CET1

Ratio

• Flexibility to redeem preference

shares when appropriate1

1 2 3

Addressing Strategic Rationale

(=) (=)

Median: 10%

4.7% 2.3% (6.5)% 11.2% 18.2% 11.7% EBA Core Tier 1 Ratio (Pro forma IRB & Astir) €2.5bn Capital Increase BoG Approved Capital Actions¹ Pro Forma EBA Core Tier 1 Ratio Fully Loaded Basel 3 Impact Pro Forma Basel 3 Fully Loaded CET1 Capital Actions Executable Over a Longer Time Frame

8

1 Although Basel III through CRD IV became effective in the EU as of January 1, 2014, certain of the applicable provisions relating to CET1 ratios will transition over time and are also subject to interpretation by the relevant regulator. As a result the calculation by NBG of its CET1 ratio may not be directly comparable to the calculations made by the peer group. Accordingly, Basel III fully loaded CET1 measures should not be considered in isolation or as a consistent comparative measure across banks, in particular across banks in different

• jurisdictions. NBG’s CET1 ratio is an estimate by NBG based on its current understanding of CRD IV rules applicable to Greek banking groups, and on the outputs of certain models not yet approved by the Bank of Greece. These rules are new and complex and their

implementation may be different from NBG’s current understanding. 2 Peer sample consists of Piraeus Bank (pro forma for €1.75bn capital increase), Alpha Bank (pro forma for €1.2bn capital increase), Banco Bilbao Vizcaya Argentaria SA, Banco de Sabadell SA, Banco Espirito Santo SA, Banco Popolare SC, Banco Popular Espanol SA, Bank of Ireland, BNP Paribas SA, CaixaBank SA, Commerzbank AG, Credit Agricole SA, Deutsche Bank AG, Erste Group Bank AG, KBC Groep NV, Societe Generale SA. NBG pro forma for capital increase and BoG approved capital actions.

Basis for Upcoming ECB AQR NBG Estimate of Basel III1 Impact Including Full Phasing (Applicable 2024)

Significantly Strengthened NBG CET1 Ratio Under Basel III

€5.1bn €1.9bn €1.7bn

Buffer Above 8%

Well Capitalised in European Context NBG Capital Position (Dec 2013 Pro Forma)

Additional Capital Actions Basel III3 Fully Loaded CET1 Ratio (Dec 2013, Pro forma)4

Source: Company filings, Basel III fully loaded CET1 ratios as reported.

11.7% Peer 1 Peer 2 NBG Pro Forma Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer 15

9

Capital Requirements Derive From Conservative Views on Capital Generation

Source: Bank of Greece, “2013 Stress Test of the Greek Banking Sector”, Mar-2014 (Baseline scenario)

1.5 5.1 (3.6) 2.2 BoG-Estimated Capital Generation Until End 2016 3 years PPI Implied from Q4.13 PPI (Assumes no Synergies and no Capital Actions) Implied Haircut BoG Estimated Capital Requirements

• Implied haircut of €3.6bn (-71%) from current Q4.13 PPI of €422mn

€bn

BoG Overlay Adjustment

10

Flexibility to Apply for Preference Share Repayment

1 Subject to regulatory approval.

NBG seeks to be in a position to repay the preference shares, at any time considered appropriate1

Non Basel III CET1 compliant instrument

• Redemption

eliminates risk of potential dilution Repayment increases NBG’s flexibility to

• rdinary shareholders

returns

1 2 3

11

A Clear Trend Towards Repaying State Aid

Overview of State Aid Repayment by European Banks

• c. 3/4
• c. 1/4

Repaid Outstanding / No Immediate Action Clear Plan to Repay

National Bank of Greece

Key Investment Highlights

12

2

€2.5bn Capital Raising on the Back of Strong Competitive Edge

Greek operations geared for core revenue recovery Significant domestic cost reduction program well underway Best-in-class asset quality and risk profile among Greek banks First and only Greek bank to Return to Profitability in 20131 Highly attractive international presence Stable funding sources and strong liquidity position

2 1 3 4 5

6

Robust capital base post €2.5bn capital raising and €1.04bn capital actions approved by BOG EBA Core Tier 1 ratio of 18.2% (applicable ratio for AQR) Fully loaded Basel III Common Equity Tier 1 ratio of 11.7%2

13

6

1 NBG is the only systemic Greek bank with pre provision income exceeding cost of risk at the end of 2013 (in 2Q’13 and 4Q’13). 2 Although Basel III through CRD IV became effective in the EU as of January 1, 2014, certain of the applicable provisions relating to CET1 ratios will transition over time and are also subject to interpretation by the relevant regulator. As a result the calculation by NBG of its CET1 ratio may not be directly comparable to the calculations made by the peer group. Accordingly, Basel III fully loaded CET1 measures should not be considered in isolation or as a consistent comparative measure across banks, in particular across banks in different jurisdictions. NBG CET1 ratio is an estimate by NBG based on its current understanding of CRD IV rules applicable to Greek banking groups, and

• n the outputs of certain models not yet approved by the Bank of Greece. These rules are new and complex and their implementation may be different from NBG’s current understanding.

Greek Operations Geared for Core Revenue Recovery

15.7 17.3 FY 2012 FY 2013 35.1% 37.1% +€3bn 2

14

121bps 9bps Historical Pre Crisis Level (2005-2008 Average) FY 2013 €43.7bn Savings Sight Time Deposits

Core3 Deposit spread

• 20 bps

in Q4‘13

• 264 bps

spread in Q4‘13

Substantial Scope for Recovery in Fee Income Core Deposit Base Offers a Significant Funding Advantage Time Deposit Repricing Leads to Margin Improvement Ongoing Credit Expansion to Attractive Corporate1 Segments

Source: Bank of Greece

% of domestic loans Savings Deposit Market Share at 35.3%

49% 15% 36%

Front book at 241bps

Domestic Deposit Mix (Dec-13) Domestic Gross Corporate Loans Evolution (€bn, Dec-13) Domestic Term Deposits: Yield vs NIM

1

Domestic Fees/Average Domestic Net Loans (bps)

bps

1 Excluding loan to the Greece State maturing in 2037. 2 NBG 2014 Corporate Campaign. 3 Savings, sight, current.

330 344 349 339 300 245 252 260 251 260 200 240 280 320 360 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Yield NIM

Significant domestic cost reduction program well underway

15

…Leaving a Mark on Efficiency Ratio Before Income Recovery Domestic Personnel Expenses Consistently Optimised…

2

Domestic Personnel Expenses (€bn)

1,100 1,060 987 904 821 155 666 FY2009 FY2010 FY2011 FY2012 Personnel Expenses FY2013 VRS Savings Personnel Expenses FY2013 Pro Forma

1 Excluding FBB & Probank acquisition impact in 2013. 2 Excluding VRS one-off costs. 3 Including VRS saving, excluding VRS one-off costs.

70.3% 61.5% 2013 2013 Pro Forma for VRS

Domestic Cost / Income Ratio (%)

2 3

486 303 2012 2013

Best-in-class asset quality and risk profile among Greek banks

3 6.5 11.2 9.1 5.8

• 8.7
• 16.1
• 14.7
• 9.5

NBG Peer 1 Peer 2 Peer 3

18.1% 23.2% 22.2% 21.8% NBG Peer 1 Peer 2 Peer 3

Source: Bank of Greece, “2013 Stress Test of the Greek Banking Sector” (Mar-2014)

1 All data as of 30/06/2013. 2 Based on released financial statements.

74% 69% 62% 61% Less to Charge 2014-2016 Highest Coverage Lowest Losses under Stress

Coverage

2.3 5.0 5.6 3.7 NBG Peer 1 Peer 2 Peer 3

Stock of Provisions (€bn)2 Credit Loss Projections (CLPs) €bn

3,559 1,549 2012 2013 Domestic +90 dpd Flows (€bn) Cost of Risk (bps)

16

Decelerating Domestic +90 days past due Formation Levels Resulting in Normalising Cost-of-Risk BlackRock Attests: NBG Has the Best Quality Loan Portfolio in Greece1

Lifetime CLPs / Loans CLPs and Provision Stock Uncovered (net) CLPs

• 57%
• 38%

523 880 148 1,037 1,551 2012 2013 Greece Turkey SEE & Other

First and only Greek bank to Return to Profitability in 20131

4 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

PPI CoR

• +34

+422

• 388
• 536

Pre-provision Income 2013, €mn Pre-provision Income vs Provisions 2013

• 76
• 1,720
• 1,005
• 1,405

1,551 498 918 516

• 1,627
• 2,218
• 1,923
• 1,920

NBG Peer 1 Peer 2 Peer 3 Pre-provision income (€mn) Provision Charges (€mn) Earnings after provisions (€mn) 17

NBG Group has Closed the Gap Between Cost of Credit Risk and Pre-Provision Income

€mn

NBG Peer 1 Peer 2 Peer 3

Source: Company disclosure

1 NBG is the only systemic Greek bank with pre provision income exceeding cost of risk at the end of 2013 (in 2Q’13 and 4Q’13).

15.6 17.5 24.6 30.3 36.4 42.7 2008 2009 2010 2011 2012 2013 2014E 2015E Customer Loans (Finansbank) 18.9% 18.7% 18.6% 17.7% 17.0% 17.9% 17.4% 16.3% 15.7% 15.3% Dec-12 Mar-12 Jun-13 Sep-13 Dec-13 Finansbank Sector 18

Strong Revenue Generation

(NII + FCI) / IEAs, bps1

18.3 21.3 22.7 26.4 2010 2011 2012 2013 TRY Deposits

Sources: BRSA Bank-Only data for Finansbank. The Banks Association of Turkey, BRSA bank-only data as of Dec 31,2013

898 772 831 753 82 78 205 194 2010 2011 2012 2013 NII & Fee Margin CoR

TRY Deposits, TRYbn

105% 103% 105% 109%

Total LTD, % (customer loans / (customer deposits + TRY bonds))

Turkey: Strong Presence in an Attractive Market

Remaining Self-Funded High Growth Market Strong Capital Position

CAR, %

Real GDP Growth, % y-o-y TRY bn

5

Source: BRSA Bank-Only financial statements 2008-2013 Sources: BRSA Bank-Only financial statements 2008-2013, IMF World Economic Outlook Sources: BRSA Bank-Only financial statements 2011-2013

1 (Net Interest Income + Fee & Net Commission Income) / Interest Earning Assets (incl. cash).

0.7%

• 4.8%

9.2% 2.2% 8.8% 2.3% 3.1% 4.3%

9,243 7,051 700 517

2009 2013 118 60 61 122 160% 148% 132% 113% 99% 2009 2010 2011 2012 2013

SEE-5: Restructured and Profitable Operations

265 218 2009 2013

• 24% employees
• 26% branches

Loans/deposits (%) Operating Expenses (€mn)

• 65

6 26 32 2012 H1 2013 H2 2013 2013 457 453 391 318 323 2009 2010 2011 2012 2013 Dec12 Dec13 Δ± Bulgaria 411 313

• 98

Romania 449 313

• 136

Serbia 468 297

• 171

FCY time deposits cost (bps)

• 18%

Pre-provision income Net income

5 19

Footprint Reduced Liquidity Position Allows Credit Expansion Operating Expenses Cut Cost of Funding Reduction Supports NIM Profitability Trend Improved in H2’13

Net Interest Margin (bps) Net Income1 (€mn)

1 Profit of the Period.

Sources: Bank of Greece; Company disclosure.

1 Adjusted for a loan to the Greek State maturing in 2037.

Stable Funding Sources and Strong Liquidity Position

6

Loans to Deposits Ratio1, Dec 2013

97% 111% 122% 110% 90% 110% 117% 115% NBG Peer 1 Peer 2 Peer 3 Group Domestic

Domestic Deposit Breakdown by Type, Dec 2013

20 6.3% 12.4% 18.6% 14.7% 4.7% 7.2% NBG Peer 1 Peer 2 Peer 3 EFSF Bonds ECB Funds ELA

18.7% 19.1% 23.3% 21.9%

Eurosystem Funding / Total Assets

Cost Advantageous Domestic Deposit Mix

Lowest Reliance on Eurosystem Funding and No ELA Exposure Best in Class Loans to Deposits Ratio

€bn, Dec 2013

11.4%

Eurosystem Funding / Total Assets,

• Excl. EFSF Bonds

Time Deposits, 49% Sight & Savings Deposits, 51%

NBG Market (Excluding NBG)

Time Deposits, 64% Sight & Savings Deposits, 36%

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Strategic Priorities and Business Actions1

Enhancement of Pre-Provision Income

• Selective domestic credit disbursements to high RoE sectors
• Fee income recovery led by bancassurance and loan origination
• Domestic time deposit repricing to converge to pre crisis spreads
• Process redesign in order to rationalize pesronnel cost
• Optimize central / admin functions

Enhancement of the Capital Base

• Swift execution of the capital plan
• Derisking the balance sheet
• Preparing for the repayment of preference shares2

Strenghtens the Liquidity Active Management of Loans in Arrears

• Dedicated corporate troubled assets division
• Alignment of retail collection operating model to the new legal

framework

• Value maximization through active management of NPL

portfolios

• Recapture loyal deposits as the economy recovers
• Tapping of the wholesale funding markets
• Reduce ECB funding

1 As identified by NBG management. 2 When and as appropriate, subject to regulatory approvals.

   

National Bank of Greece

Greek Macro Environment

22

A

Greek Macro Environment

— General Government Deficit declined by 13% of GDP during the 2009-2013 period. General Government Primary Deficit declined by almost 12% of GDP at the same period — From twin deficits to twin surpluses: current account surplus

• f 0.7% of GDP; primary fiscal balance of 1.5% in 2013

— GDP has recovered from a decelerated contraction of 3.8% in 2013 to an expected expansion by 0.6% in 2014 and 2.9% in 2015

Sources: IMF/ECB/European Commission, EL.STAT., Eurostat, BoG, Council of Economic Advisors to the Ministry of Finance

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— Economy has regained its lost competitiveness in terms of nominal labour cost (reduced by c. 17% since 2009) — Labour market reform has resulted in a 22% reduction in minimum wage (32% for young workers) and a new minimum wage setting mechanism — Economic sentiment in Greece has improved by 2.2 points to 94.8 in Feb-2014 vs. 92.6 in Jan- 2014, highest since Sep- 2008, boding well for a recovery scenario — Growth sectors currently are tourism and related sectors, energy, chemicals, food and beverages, production and services sectors

Greek Macro – Current Environment

(2.0) (0.6) (1.2) (4.1) (7.1) (6.0) (4.0) (2.1) 0.2 5.0 7.1 6.1 5.5 (4.2) (3.3) (4.2) (7.2) (10.5) (9.7) (7.9) (6.2) (4.6) 2.9 4.6 4.9 4.9 (6.5) (5.8) (7.6) (11.4) (14.6) (14.9) (11.2) (10.1) (9.9) (2.4) 0.7 1.1 1.3 (15.0) (10.0) (5.0) 0.0 5.0 10.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013¹2014²2015² % GDP Current Account Balance (excl. oil) Current Account Balance Current Account Balance (excl. oil & GG net interests) (3.1) (4.9) (7.1) (6.4) (3.7) 0.6 2.9 (8.0) (6.0) (4.0) (2.0) 0.0 2.0 4.0 2009 2010 2011 2012 2013¹ 2014² 2015²

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Unemployment Rate Nominal Unit Labor Costs (2005 = 100) Current Account (% GDP) GDP Growth Rate

1 Provisional estimate. 2 Forecast/ Economic Program Targets.

— Current Account Deficit fell by 15.6% of GDP between 2008 and 2013 — Current Account in surplus in 2013 for the first time after many decades — Between 2008 and 2013, the Greek economy has lost almost 25% of GDP but is expected to start growing again in 2014 — Unemployment above 27% with youth unemployment at 58% (the highest level in the Euro-area) — Reforms in labour market have resulted in a 22% reduction in minimum wage levels and a new minimum wage setting mechanism — Average public sector salary cut by 23% between 2010 and 2012

Source: Bank of Greece Source: European Commission, European Economic Forecast, Winter 2014 8.9 8.3 7.7 9.5 12.6 17.7 24.3 27.3 26.0 24.0 21.0 8.3 7.2 7.1 9.0 9.7 9.7 10.5 10.9 10.7 10.4 5 10 15 20 25 30 2006 2007 2008 2009 2010 2011 2012 2013¹ 2014² 2015² 2016² Greece EU28 80 90 100 110 120 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E Greece Euro Zone (17 countries) Source: European Commission, Winter Forecast 2014 Sources: Bank of Greece, European Commission DG ECFIN, ELSTAT, AMECO

Greek Macro – Results of the Economic Program

— General Government Deficit shrank by 13.4% of GDP,

• verperforming the target for

2013 by 1.9% of GDP — General Government Primary Deficit shrank by 11.1% of GDP, overperforming the target by 0.7% of GDP — Fiscal measures amounting to 29% of GDP have been taken since 2010, almost equally split between expenditure cuts and revenue increases — Cyclically adjusted primary balance improved by more than 16% of GDP between 2009 and 2013; substantially higher than the Euro area average — Greece has managed to achieve the biggest fiscal consolidation among OECD countries during the 2009 to 2013 period

General Government Fiscal Accounts 2009- 2016 (% of GDP) Fiscal Measures 2010-2014 (% of GDP)

Sources: European Commission, IMF, AMECO, General Accounting Office, Council of Economic Advisors to the Ministry of Finance Note: Program definition, excluding financial sector support; Fiscal consolidation episodes as defined in OECD Economic Outlook 81 1 Provisional estimate. 2 Forecast/Economic Program Targets Economic Program Definitions. 3 Excludes financial sector support.

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Cyclically Adjusted Primary Balance (% GDP) Cyclically Adjusted Primary Balance Improvement (% GDP)

(1.7) (2.6) (0.6) 0.5 1.4 1.7 1.3 (9.9) (2.3) 1.9 4.1 6.3 7.3 6.1 (15.0) (10.0) (5.0) 0.0 5.0 10.0 2009 2010 2011 2012 2013¹ 2014² 2015² Euro Area Greece 16.3 11.4 9.9 9.6 9.0 8.8 7.6 7.4 6.5 6.5 3.6 3.6 3.3 3.1 Greece³ Denmark Belgium Germany UK Finland Sweden Portugal³ Ireland³ Spain³ Austria Italy Netherlands France³ 4.8% 4.7% 3.1% 1.2% 0.5% 3.8% 4.1% 2.8% 4.4% 1.6% 8.6% 8.8% 6.0% 5.6% 2.1% 2010 2011 2012 2013E 2014E % of GDP Revenue Expenditure Source: IMF, 06-2013 and General Accounting Office Source: General Accounting Office, European Commission Source: European Commission, Winter Forecast 2014 Source: AMECO

Greece achieved cumulative fiscal consolidation of 16.3p.p. of GDP (2009-2013), the biggest in the developed world in this time period

(15.6) (10.8) (9.6) (6.3) (2.6) (2.7) (1.9) (0.7) (10.5) (4.9) (2.4) (1.3) 1.5 1.5 3.0 4.5 (20.0) (15.0) (10.0) (5.0) 0.0 5.0 10.0 2009 2010 2011 2012 2013¹ 2014² 2015² 2016² General Government Balance General Government Primany Balance

National Bank of Greece

Finansbank Overview

26

B

A Favorable Macroeconomic Story

Favorable Demographic Profile Strict Fiscal Discipline

27

Source: Eurostat, CIA

50% 36% 34% 36% 33% 33% 32% 39% 44% 43% 43% 43% 43% 43% 11% 20% 23% 21% 24% 24% 25% Turkey Russia Romania Poland Hungary Czech Rep. Eurozone

Population by Age 2013

>59 <30 30-59

(0.6)% (1.6)% (1.8)% (5.5)% (3.5)% (1.3)% (2.0)% (1.2)%

(3.0)% 2011 2013 2012 2010 2009 2008 2007 2006 Maastricht criterion

Budget Balance % GDP

Declining Public Debt

47% 40% 40% 46% 42% 39% 36% 36% 2006 2007 2008 2009 2010 2011 2012 2013 60%

Public Debt EU Definition, % GDP

Maastricht criterion 2.1 4.0 2.5 3.9 (0.5) 4.6 1.7 3.7 (2.7) 4.3 2.0 4.7 (4.0) (0.7) 2.7 6.0 2012 2013E 2014E 2015E Real GDP Private Consumption Gross Fixed Investment

Source MSER

Uptick in Growth Rates from 2015

Source: IMF WEO Source: IMF

Finansbank Is #5 Privately Owned Bank in Turkey

28

Key Metrics (Q4’13) 1 Ranking by Segment (Q4’13) 1,2

Total Assets TRY 66.0bn / #5 Loans TRY 42.7bn / 4.0% Customer Deposits TRY 38.1bn / 3.9% Employees 13,967 ATMs 2,736 Branches 674 TRY Time Deposits #5 Overdrafts #1 Commercial Instalment Loans #4 Mortgages #5 Consumer Loans #5 Branches #6

1 Finansbank, The Banks Association of Turkey. BRSA bank-only data as at Q4’13 2 Ranking among top 9 privately owned commercial banks

Real Banking the Core Driver for Delivering Growth and Strong Performance

Real Banking…

29

Source: The Banks Association of Turkey, BRSA bank-only data as at Dec-31

Asset Composition 2013 Revenue Composition 2013

…With A Track Record of Strong Growth

Source: The Banks Association of Turkey, BRSA bank-only data as at Dec-31

65% 60% 60% 65% 64% 13% 18% 24% 13% 18% 22% 21% 15% 22% 18% Finansbank Peer 1 Peer 2 Peer 3 Peer 4 Loans Securities Other 83% 74% 69% 73% 73% 12% 21% 28% 20% 18% 5% 5% 3% 7% 9% Finansbank Peer 1 Peer 2 Peer 3 Peer 4 Revenue from Customer Business1 Revenue from Securities2 Other3

1 Comprises interest income from loans, fees and commissions received, foreign exchange gains / (losses). 2 Comprises interest income from securities, securities trading gains / (losses). Excluding gains / losses from financial derivatives. 3 Comprises other operating income, dividend income, other interest income.

Total Assets TRY, bn

19.8 67.7 2006 2013 12.3 42.7 2006 2013

Net Loans TRY, bn

2.2 7.9 2006 2013

Equity TRY, bn

Source: Finansbank, BRSA consolidated data as at Dec 31,2013

Strong Distribution Efficiency & Nationwide Reach to Capitalise on Turkish Growth Opportunity

Countrywide Presence with Network Capturing 97% of Turkish GDP1

30

Branch Evolution

New and Efficient Branch Network

Top 5 Others No Presence

1 Finansbank analysis. 2 Active customers for credit cards are customers active in the last 3 months, and for other products active in the last month. Source: Finansbank, BRSA bank-only data as at Q4’13 unless otherwise stated

411 458 461 503 522 582 674 2007 2008 2009 2010 2011 2012 2013 2.2 2.7 3.1 3.4 4.0 4.6 5.1 2007 2008 2009 2010 2011 2012 2013 6.8 11.9 21.1 23.3 28.9 Finansbank Peer 1 Peer 3 Peer 2 Peer 4 28.3 34.8 35.1 41.6 42.5 Peer 4 Peer 3 Finansbank Peer 2 Peer 1 24.4 25.2 34.5 35.2 39.5 Finansbank Peer 3 Peer 2 Peer 4 Peer 1

• No. of Active Customers2

mn Average Branch Age Years Retail Loans + SME / Branch TRYmn Retail Deposit / Branch TRYmn Geographic Footprint Number of Branches

Kırklareli (2) Edirne (3) Tekirdağ (9) Istanbul (245) Çanakkale (4) Balıkesir (7) Manisa (9) İzmir (52) Aydın (8) Muğla (12) Denizli (8) Burdur (2) Antalya (32) Isparta (2) Eskişehir (6) Bilecik (2) Konya (12) Düzce (2) Kütahya (2) Bursa (29) Mersin (13) Afyon (2) Uşak (2) Kocaeli (16) Yalova (1) Sakarya (7) Zonguldak (4) Bartın (1) Karabük (1) Kastamonu (1) Çankırı (1) Karaman (1) Aksaray (1) Nevşehir (2) Kayseri (11) Adana (17) K.Maraş (4) Gaziantep (10) Hatay (7) Niğde (1) Kırıkkale (1) Ankara (65) Çorum (2) Yozgat (1) Amasya (2) Sinop (1) Ordu (3) Tokat (2) Elâzığ (2) Gümüşhane Sivas (1) Bingöl Malatya (3) Tunceli Artvin Erzurum (2) Trabzon (4) Rize (1) Erzincan (1) Giresun (1) Samsun (7) Urfa (4) Adıyaman (1) Diyarbakır (4) Mardin (3) Hakkâri Batman (1) Van (1) Ağrı (1) Iğdır (1) Muş Bitlis Osmaniye (2) Kilis (1) Bayburt Şırnak Siirt (1) Ardahan Kars (1) Bolu (1) Kırşehir (1)

Existing Strategic Shift to Attractive SME Segment

31

Restrictive Regulatory Changes Being Implemented

• Political focus on curbing consumer lending has been

increasing in intensity since 2011

• Starting with increasing the general provisioning rates

in June ’11, regulations have served to slow down consumer lending

• The regulatory pressure intensified in 2013 as general

provisioning rates increased further and caps were introduced on interest rates charged to specific retail products

Households’ Wealth and Leverage Have Been Rising

9.1% 11.1% 12.3% 13.4% 15.7% 17.2% 18.7% 21.0% 2006 2007 2008 2009 2010 2011 2012 2013 GDP per capita (current prices, $000s) Household liabilities / GDP 7.7 9.2 10.3 8.5 10.0 10.5 10.5 10.7

Historical Growth in Retail Tailing Off

Source: BRSA, IMF

Expansive Regulatory Changes Being Implemented

• Authorities have encouraged lending to SMEs

again through changing general provisioning rates

• Authorities are focusing on reducing imports and

boosting exports

• As a result of these incentives, SME business

started to accelerate after 2011

SME Loans/GDP increased by 2 pps annually on average

SME Lending Has Been Growing Steadily (TRY bn)

Source: BRSA, IMF

SME Loans SME Loans / GDP 83 125 163 200 257 8.7% 11.4% 12.5% 14.1% 16.4% 2009 2010 2011 2012 2013

• Corporate & Commercial companies: (Over

TRY 40mn)

• SME companies: (Up to TRY 40mn)
• Corporate & Commercial and SME make up 43% of bank

loans

• Mortgage loan growth slowing in line with the strategy of

the Bank

• Over the last 2 years, the bank has continued to increase

its SME focus while reducing its exposure to consumer loans and credit cards

Source: BRSA consolidated data as of 2013

Business segmentation (By annual turnover)

Loan Breakdown

35% 34% 31% 26% 30% 26% 39% 36% 43% 2011 2012 2013 Retail Credit Cards Corporate €42.4bn €36.4bn €30.4bn

National Bank of Greece

SEE Operations Overview

32

C

SEE-5 is an attractive region with solid banking growth prospects

Percent

Real GDP growth CAGR 2012-2017 1.3% 2.4% 3.3% 2.3% 2.4% 2.8% 0% 50% 100% 150% 200% 250% 300% 5 10 15 20 25 30 35 40 45 Romania Portugal Poland Netherlands Malta Lithuania Italy Hungary Greece Albania France Finland Spain Estonia UK GDP based on PPP/Capita USD ‘000 Croatia Turkey Denmark Germany EU-28 Average Bulgaria Belgium Austria FYROM Latvia Serbia Slovakia Slovenia Sweden Czech Republic

2012

Loans over GDP Bulgaria Romania Serbia FYROM Albania EU-28 Average

33

Strong GDP growth Estimates vs. EU average

Source: IMF

Loan penetration expected to expand as GDP grows

National Bank of Greece

Bank of Greece Stress Test

34

D

NBG Group Capital Needs Assessment by the Bank of Greece (€bn)

1 Greek & International CLP, net of existing provisions at June 2013. Pre-tax for Greece and post-tax and taking into account mitigating actions for foreign subsidiaries a per Bank of Greece methodology.

35

1.5 (3.7) 2.2 4.8 4.7 Jun-2013 Reference EBA Basel 2.5 Core Tier1 3.5 Years Pre Provision Income Retained by BoG Net CLPs¹ Retained by BoG Implied Capital Needs Target Dec-2016 EBA Basel 2.5 Core Tier1 Significant Discount to NBG Own Estimate and Run-Rate PPI BoG CLP Imply a Highly Stressed Scenario (Prudential Filter on Top of Blackrock) A B Based on 8% Minimum CT1 Ratio (Baseline Scenario) EBA CT1 Ratio of 8.6%

• .w. €1.0bn Covered

by BoG Approved Capital Actions €1.1bn Outstanding Shortfall

• On March 6, 2014, the BoG published the results of its capital needs assessment exercise
• NBG capital needs estimated at €2,183mn in the Baseline Scenario (binding constraint), €2,502mn in the Adverse Scenario

BoG PPI at a Significant Discount to Recent Profitability Track Record

BoG 3.5 Years (Jun-13 to Dec-16) Capital Generation (€bn)

36

NBG PPI Quarterly Performance 2012-2013 (€mn)

12 24 (175) 89 37 123 109 254 233 276 306 272 315 317 228 168 245 300 131 361 352 440 337 422 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Greece International €0.3bn €0.4bn €5.1bn €5.8bn €1.5bn BoG Estimate 3.5 years PPI Implied from Q4'13 PPI No synergies No capital actions Q4'13 (€422m) x 12 Q4'13 Q3'13 3.9x Haircut

Source: Bank of Greece, “2013 Stress Test of the Greek Banking Sector” (Mar-2014)

Total 2013 PPI of €1.6bn in just 1 year, exceeding BoG retained PPI for 3.5 years (despite 2013 recession in Greece and significant headwinds in Turkey)

BoG Implied Quarterly PPI: €104m (3.1x haircut) Average Quarterly PPI: €324m

• NBG has benefited historically from strong diversification in its pre provision earnings
• Bank of Greece retained PPI (implied quarterly average of €104mn) is at a significant discount to track record
• Minimum quarterly PPI over the last 2 years (€131mn in Q3’12 at the heights of the Greek crisis), exceeded BoG retained amount

A

Petros Christodoulou

Deputy CEO +30210 334 3909 pchristodoulou@nbg.gr

National Bank of Greece

Contact details

Greg Papagrigoris

Head of IR +30210 334 2310 papagrigoris.gr@nbg.gr ir@nbg.gr

Paula Hadjisotiriou

Group CFO +30210 334 3051 phadjisotiriou@nbg.gr

Paul Mylonas

Group CRO +30210 334 1521 pmylonas@nbg.gr