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

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

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National Bank of Greece Q1.2014 Results May 28 th , 2014 Q1.2014 Results: Highlights National Bank of Greece | Q1.14 Results Q1.14 Result Highlights Post the 2.5bn capital increase and before capital actions, CET1 1 ratio at 15.4% 2

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National Bank of Greece

Q1.2014 Results

May 28th, 2014

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Q1.2014 Results: Highlights

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National Bank of Greece | Q1.14 Results

Q1.14 Result Highlights Post the €2.5bn capital increase and before capital actions, CET11 ratio at 15.4%2 Q1.14 Group PAT “in the black” for a 6th consecutive quarter at €181mn Operating profit (PPI less Provisions) doubles qoq to €76mn

  • Group NII remains resilient +7% yoy, 0% qoq in stable currency terms
  • Group cost cutting (-10% yoy) is driven by impressive results in domestic personnel cost

containment (-19% yoy) – Group Cost to income ratio already at 54%, Domestic at 52%

  • 90dpd formation in Greece and Turkey on a continuous decelerating trend (-6% and -

66% qoq) despite seasonality Finansbank on a positive trajectory, bounces back from Q4.13 lows: Q1.14 PAT at TL192mn (+102% qoq) Industry leading L:D ratio at 93%, with Greece at 84% Following the capital raising and the 5 yr bond issue at a yield of 4.5%, ECB funding down to €14.5bn,3 of which €7.1bn through EFSF bonds

   

1 Common Equity Tier 1 , CRD ІV rules for 2014 2 Pro forma for the completed €2.5bn capital increase, Finansbank IRB, and Astir Hotel sale; excluding BoG approved capital actions deliverable by Sep.14 3 Date as of 19 May 14

 

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National Bank of Greece | Q1.14 Results Pre-Provision Earnings

Positive Group PAT for a 6th quarter in a row driven by the doubling of Operating Profit

Highlights Highlights

Q1.14 PPI of €438mn (+25% yoy) absorbs declining credit risk charges of €362mn (-15% yoy), producing operating profit of €76mn Q1.14 Group PAT, is “in the black” for a 6th consecutive quarter Q1.14 Group NII – stripping off the TL translation impact - keeps recovering in Greece and SEE, displaying remarkable resilience in Turkey:

  • Greece: +14% yoy
  • SEE: +9% yoy
  • Turkey: -2% yoy (TL terms), despite a strong Q1.13

Cost containment accelerates in Greece (-16% yoy ) driving Q1.14 Group OpEx down by 10% yoy Credit risk charges are reduced further by 15% yoy and 7% qoq, driven by reduced 90dpd formation (-32% yoy, -6% qoq) Finansbank starts to recover from the tough levels of Q4.13:

  • Core income: +1% qoq
  • OpEx: -6% qoq
  • PPI: +24% qoq
  • PAT: +102% (TL 192mn)

SEE produces a quarterly PAT of €14mn €750mn 5yr senior unsecured bond issue priced through the sovereign at a yield of 4.5%

€ mn Q1.14 Q1.13 yoy% Q4.13 qoq% NII 751 772

  • 3%

776 `-3% Net fees 129 135

  • 4%

136

  • 5%

Insurance income 20 14 +39% 17 +18% Trading & other income 44 (7)

  • 131
  • 66%

Income 944 915 +3% 1 060

  • 11%

Operating Expenses (506) (563)

  • 10%

(638)

  • 21%

Pre-Provision Earnings 438 352 +25% 422 +4% Loan Provision Charges (362) (428)

  • 15%

(388)

  • 7%

Operating Profit 76 (76)

  • 34

>100% Impairments & other one-offs 138 117 +18% 535

  • 74%

Taxes (20) (7) >100% (18) +11% Minorities & non cash chrg (13) (7) +86% (4) >100% Attributable PAT 181 27 >100% 547

  • 67%

Consolidated P&L Account

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National Bank of Greece | Q1.14 Results

NPL Formation decelerates further, liquidity improves, capital adequacy is strengthened

Highlights

Pre-Provision Earnings

Liquidity

Eurosystem exposure reduced by €6.2bn ytd, to just 7% of Group assets L:D at 84% domestically, and 93% for the Group, driven by strong deposit gathering in the key regions: Greece +15% yoy, Turkey +23% yoy

Asset Quality

Formation of domestic past due loans dropped further to €312mn in Q1, reduced by 32% yoy and 6% qoq, supporting a decelerating trend for 6 quarters in a row Q1.14 domestic provisioning charges reduced by 17% at 270bps vs 324bps in Q1.13. Domestic coverage at 56%, up by 270bps yoy

Capital

Q1.14 reported CET I ratio at 10.5% Pro forma for the €2.5bn capital increase and before capital actions*, CΕT I at 15.4%

+1.031 +1.028 +487 +457 +378 +382 +332 +312 +0 +400 +800 +1.200

Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Domestic: +90dpd flows 106% 112% 109% 101% 96% 93% 88%

90%

84%

112% 117% 115% 108% 105% 102% 97%

97% 93%

Q1.12 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Group & Domestic L:D +90dpd formation Q1.14 -32% yoy

10,3% 10,5% 15,4%

FY.13A Q1.14A Q1.14*PF CET I *: Pro forma for the €2.5bn cap. increase, FB IRB and Astir hotel

sale, before capital actions €1,040mn

EBA CT I CET I RWAs: €57.7bn

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National Bank of Greece | Q1.14 Results

252 260 251 260 266

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

359 346 364 325 326 317

310 340 370 400 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Pre-Provision Earnings

Gradual NII recovery in Greece, resilience in Turkey despite systemic pressures (-2%qoq)

Group Income Group Net Interest Margin & NII

788 903 794 787 770 336 376 303 284 254

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

643 721 591 556

512

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

NII (TL mn) NIM (bps) NII (€mn) NIM (bps)

Greece: NII & NIM Turkey: NII & NIM SEE: NII & NIM

365 388 393 413 418

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 NII (€mn) NIM (bps) NII (€mn)

€ mn

Q1.14 Q1.13 yoy% Q4.13 qoq%

NII 751 772

  • 3%

776

  • 3%

Net fees 129 135

  • 4%

136

  • 5%

Insurance income 20 14 +39% 17 +18% Core income 900 922

  • 2%

929

  • 3%

Non core income 44 (7)

  • 131
  • 66%

Total Group Income 944 915 +3% 1 060

  • 11%

€ mn Q1.14 Q1.13 yoy Greece 418 365+14% Turkey 254 336

  • 2%

SEE & Int’l 79 72+11% Group NII 751 772 +7% Group NIM - bps Group NII yoy breakdown (€mn)

322 314 312 332 354

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Highlights

In TL terms Adjusted for stable TL terms

62 62 62 66 67

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

+0% Adjusted for stable TL terms +1% Adjusted for stable TL terms

LT avg 580bps

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National Bank of Greece | Q1.14 Results

Personnel costs in Greece down by 19% reflecting the successful completion of the large scale VRS

Group Operating Expenses

271 255 234 208 169

50 100 150 200 250 300 Q1.10 Q1.11 Q1.12 Q1.13 Q1.14

Greece

Personnel expenses - €mn

€ mn

Q1.14 Q1.13 yoy% Q4.13 qoq%

Greece 257 306

  • 16%

326 -21%

Personnel expenses 169 208

  • 19%

212 -20% G&A’s

63 73

  • 13%

85

  • 25%

Depreciation

24 25

  • 2%

29

  • 15%

Turkey 190 195

  • 2%

246 -23% SEE & other 60 63

  • 4%

67 -10% Group Opex 506 563

  • 10%

638 -21%

G&As & Depreciation - €mn 116 104 93 98 87

20 40 60 80 100 120 140 160 Q1.10 Q1.11 Q1.12 Q1.13 Q1.14

  • 38% vs Q1.10
  • 25% vs Q1.10

Highlights

€ mn Q1.14 Q1.13 yoy%

Q4.13 qoq%

Personnel exp. 276 323

  • 14%

340

  • 19%

G&As 183 190

  • 4%

249

  • 26%

Depreciation 47 50

  • 7%

49

  • 4%

Group Opex. 506 563

  • 10%

638

  • 21%

Group C:I ratio

62% 60% 54%

40% 50% 60% 70% 80% Q1.13 Q4.13 Q1.14

  • 8% pps yoy
  • 6% on a

stable currency and like for like basis Group C:I at 54% the lowest since 2011

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National Bank of Greece | Q1.14 Results

418 271 271 247 250 236

100 200 300 400 500 600 Q3.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Q1.14 90dpd formation normalizes in Turkey, decelerates further in Greece

+90dpd Evolution

Group Cost of Risk- bps

+90dpd flows & CoR

+1.244 +1.162 +662 +617 +563 +476 +403 +380 +0 +400 +800 +1.200 +1.600

Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

23,1%23,3% 24,1% 24,4% 24,6% 23,9% 24,8%

20% 22% 24% 26% 28% Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

5,2% 5,5% 5,8% 5,2% 5,4% 6,1% 6,0%

3% 4% 5% 6% 7% Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Turkey: +90dpd SEE: +90dpd Group: +90dpd flows

Highlights

16,5% 18,2% 19,0% 19,8% 20,8% 21,9% 22,5% 23,0%

15% 17% 19% 21% 23% Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

19,3% 21,9% 23,1% 24,3% 25,9% 27,1% 27,4% 28,4%

17% 20% 23% 26% 29% Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Group: +90dpd Greece: +90dpd

  • Incl. TL 0.5bn NPL sale

Q1.14 flows

  • 38% yoy

NPL ratio to benefit c.100bps in Q2.14 from TL 0.7bn retail NPL portfolio sale in May

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National Bank of Greece | Q1.14 Results

€mn Q1.14 Q4.13 ytd yoy Savings 15 414 15 722

  • 2%

+2% Sight 6 365 6 773

  • 6%

+15% Time deposits 21 943 21 233 +3% +17% Customer deposits 43 722 43 727 +0% +11% State & Public entities 2 178

  • >100%

Total 45 900 43 727 +5% +15% Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

5,1 5,2 5,3 5,6 5,5

Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

33 30,9 27,5 25,5 22,2 20,7 18,0 14,5

Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 May.14

Loans / Deposits Greece: Deposits Evolution Turkey: Deposits SEE: Deposits SEE: €5.4bn

+2% yoy

106% 112% 109% 101% 96% 93% 88% 90%

84%

112% 117% 115% 108% 105% 102% 97% 97%

93%

Q1.12 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Greece Group

Eurosystem Funding (€bn)

Sustained deposit gathering across regions reduces further Group and Domestic L:D to 93% and 84%

100% ELA 100% ECB.

  • Adj. for

€7.1bn EFSF bonds net Eurosystem exposure / Assets at 7.2%*

Highlights

(*) excl. EFSF bonds Eurosystem funding and Total Assets

TL 40.4bn

+ 23%yoy

TL retail bonds 35.1

Greece: Deposits

38,9 40,1 40,6 45,1 43,7

Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Greece: €45.9bn

+15% yoy

32.8 36.6 37.3

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National Bank of Greece | Q1.14 Results

Median: 10%

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

Significantly Strengthened NBG CET1 Ratio Under Basel III

Buffer Above 8%

Well Capitalized in European Context NBG Capital Position

Basel III1 Fully Loaded CET1 Ratio (Pro forma)

11.6% 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 4.9% 2.3% (6.1)% 10.5% 17.7% 11.6%

CRD IV CET I €2.5bn Capital Increase (Pro forma IRB & Astir) BoG Approved Capital Actions Pro Forma CET I Fully Loaded Basel 3 Impact Pro Forma Basel 3 Fully Loaded CET1

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National Bank of Greece

Q1.2014 Results: Greece

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National Bank of Greece | Q1.14 Results

Q1.14 Operating Profit broadly to break even driven by NII recovery, cost containment and lower CoR

Segment review: Greece

Q1.14 domestic operating result (-€23mn), is driven by strong performance in all key areas: NII recovers (+14% yoy) driven by lower funding costs Impressive cost containment (-16% yoy), driven by personnel cost reduction (-19% yoy) Further normalization of credit risk charges (-17% yoy) due to lower formation; coverage at 56% Q1.14 PPI of €241mn (6.5x Q1.13 PPI) comes close to absorbing loan loss provisions of €264mn, producing a small

  • perating loss of €23mn

Q1.14 PAT reaches €104mn driven by operating profit improvement and additional DTA 90dpd formation levels drop further in Q1 to €312mn (-6% qoq) and (-32% yoy) Deposits up 5% qoq, drive L:D further down to 84%, close to pre crisis levels. Eurosystem funding reduced further by €7.7bn since the beginning of the year, at just 7% over assets. (excl. EFSF

notes)

Pre-Provision Earnings

Highlights P&L Account

€ mn

Q1.14 Q1.13 yoy% Q4.13 qoq%

NII 418 365 +14% 413 +1% Net fees 14 5 >100% 19

  • 26%

Insurance income 20 14 +41% 17 +20% Trading & other income 45 (42)

  • 131
  • 66%

Income 497 343 +45% 579

  • 14%

Wages & Salaries (169) (208)

  • 19%

(212)

  • 20%

G&As & Depreciation (88) (98)

  • 11%

(113)

  • 22%

Operating Expenses (257) (306)

  • 16%

(326)

  • 21%

Pre-Provision Earnings 241 37 >100% 254

  • 5%

Loan Provision charges (264) (318)

  • 17%

(275)

  • 4%

Operating Profit (23) (281)

  • 92%

(21) +9% Impairments & other one-offs 141 117 +21% 541

  • 74%

Taxes (1) 30

  • (12)
  • 92%

Minorities & non-cash charges

(13) (5) >100% (4) >100% Attributable PAT 104 (138)

  • 504
  • 79%

Highly successful 5yr bond issue in April: — €500mn senior unsecured — Priced through the sovereign at a yield of 4.5%

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National Bank of Greece | Q1.14 Results

44,3 44,7 45,5 46,4

46,0

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Domestic Business Lending

Corporate book grows +9% yoy and total book +4%

18,918,7 18,4 18,818,5 18,4

FY.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Gross Balances (€bn)

  • 1.5% yoy

SBLs (€bn)*

15,7 15,7 15,4 17,0 17,3 17,2

FY.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Corporate Lending (>2.5mn)*

+9.1% yoy

3,7 3,6 3,6 4,2 4,3 4,2

FY.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

+17% yoy

6,4 6,3 6,2 6,3 6,3 6,2

FY.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

  • 2.0% yoy

Domestic Loan Book Domestic Mortgages* Domestic Consumer Lending*

  • 12% from

Q2.10 peak

  • 15% from

Q2.10 peak

  • 3% from

Q2.10 peak

  • 9% from

Q2.10 peak

Segment review: Greece

38,6 38,3 39,7 39,3 38,7 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

+0% yoy Net Balances (€bn)

(*) Gross balances (*) Gross balances

+4% yoy

(*) Gross balances (*) Gross balances

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National Bank of Greece | Q1.14 Results

€ mn Q1.14 Q4.13 qoq Core deposits

  • 6
  • 11

+5 Term deposits

  • 141
  • 157

+16 Deposit NII

  • 148
  • 168

+20 Retail loans 210 222

  • 12

Corporate loans 173 177

  • 4

Lending NII 383 399

  • 16

Bonds 55 53 +2 Eurosystem funding

  • 3
  • 14

+11 Funding gap 62 68

  • 6

Subsidiaries & Other 69 75

  • 6

Domestic NII 419 413 +6

Lending Spreads (match-maturity; bps) Q1.14 Q4.13 qoq Mortgages 233 241

  • 8

Consumer loans 925 921 +4 SBLs 662 716

  • 55

Total retail 379 397

  • 17

Corporate lending 409 437

  • 28

Total lending 392 413

  • 21

Q1.14 Q4.13 qoq Core deposits

  • 12
  • 20

+8 Time

  • 229
  • 264

+35 Total deposits

  • 129
  • 147

+20 Deposit Spreads (match-maturity; bps)

Domestic Spreads Domestic Net Interest Income

NII driven by repricing of time deposits and lower eurosystem funding dependence

NII Breakdown (match-maturity; €mn)

Segment review: Greece

40 37 37 39 40 41 45 44 46 25 24 9 25 20 22 21 18 7 11 24 31 3 6

20 40 60 80 Q1.12 Q2.12 Q3.12 Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Domestic deposits ECB Funding ELA

Funding mix (€bn)

Lowering of Eurosystem dependence Further de-escalation of time deposit spreads

1,0% 2,0% 3,0% 4,0%

NBG Term Deposits: New Production Spreads

30bps below backbook spreads

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National Bank of Greece | Q1.14 Results

National Bank of Greece

Q1.2014 Results: Turkey

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National Bank of Greece | Q1.14 Results

Q1.14 PAT at TL 192mn (+102% qoq) in a difficult, yet improving banking environment Core income is recovering (+1% qoq), despite monetary policy tightening: — NII resilient in Q1.14 (-2% qoq) — Impressive growth in fees (+10% qoq) OpEx down 13% qoq (6% qoq adjusted for Q4.13 like for like) reflects zero branch openings Provision charges down -17% qoq reflect improving 90dpd formation, driving coverage levels +3ppts, qoq to 71% Liquidity profile improves further: — Solid credit expansion (+6% qoq) remains fully funded by new deposits (+8% qoq) — Eurobond issuance of USD 500mn in April was met by high international investor demand Best in class capital adequacy at 16%

Q1.14 marks the beginning of recovery in Turkey

Profit & Loss Account

Segment review: Turkey

TL mn Q1.14 Q4.13 qoq% Q1.13 yoy% Net interest income 770 787

  • 2%

788

  • 2%

Net fees 280 254 +10% 255 +10% Trading & other income (9) (2) >100% 60

  • Income

1 041 1 039 +0% 1 103

  • 6%

Operating expenses (579) (667)

  • 13%

(457) +27% Pre-provision earnings 462 372 +24% 647

  • 29%

Provisions (218) (262)

  • 17%

(194) +12% Operating Profit 244 110 121% 453

  • 54%

Income tax (52) (16) >100% (89)

  • 42%

Minority (0)

  • (1)
  • 50%

Attributable PAT 192 95 >100% 362

  • 47%

P&L account Highlights

Highly successful Eurobond issuance in April 2014: — Raised USD 500mn, with 5 years maturity — Fixed coupon rate, 6.25% p.a. — Oversubscribed c.3x

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National Bank of Greece | Q1.14 Results

643 721 591 556

400 500 600 700 800

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

100 200 300

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Q1.14 Q4.13 qoq TL Mortgages 1 045 1 017 +28 TL Credit Cards 2 461 2 362 +99 TL Consumer lending 1 819 1 769 +50 TL SME lending 1 411 1 329 +82 TL Time Deposits 993 873 +120 FC Time Deposits 276 312

  • 36

NII and NIM TL 770mn

Net Interest Margin (bps) Net Interest Income (TL mn)

200 400 600 800

3M.13 3M.14

512

200 300 400 500 600 700 800 900

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Fees

Key Product Yields (bps)

Yields TL 280mn

Core income up qoq on resilient NII and supportive fees

  • 2%

+10% qoq

  • 2% qoq

Segment review: Turkey

Q1.14 Q4.13 qoq Q1.13 yoy FTEs 15 039* 15 129

  • 90

13 624 +1 415 Branches 674 674

  • 592

+82 TL mn Q1.14 Q4.13 qoq Q1.13 yoy Wages & Salaries* 235 262

  • 10%

198 +19% G&A, Depreciation 344 356

  • 3%

259 +33% Total OpEx 579 667

  • 13%

457 +27%

Operating Expenses

Breakdown Net Fees (TL mn)

100 150 200 250 300 3M.13 3M.14

+10%

*: excluding cash bonuses

  • 44bps qoq

Since Q1, loan repricing has continued while time deposit cost has been declining *: as of April 14

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National Bank of Greece | Q1.14 Results

17,8 19,2 21,6 22,0 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 25,9 26,0 26,1 26,0 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 43,7 45,2 47,7 48,0 50,7 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

50.7bn

Business Lending (TL bn) Retail Lending (TL bn) Gross Loans (TL bn)

Successful business model shift towards SMEs is fully funded by deposit gathering

+16% yoy

+6% qoq

25.0bn

+40% yoy

+14% qoq

  • 1% yoy
  • 1% qoq

25.7bn

Demand deposits (TL bn) Total Deposits (TL bn) 4.9bn

12%

% of total deposit pool 11%

Branches

Source: The Banks Association of Turkey

Young branch network

Finansbank Peer 1 Peer 2 Peer 3 Peer 4 Average branch age (years) 7.1 12.1 23.6 21.3 28.6 Share of branches aged <5 years 32% 30% 22% 15% 22% Deposits per branch (TRY mn) 59 105 94 91 92

Segment review: Turkey

+67%

+6% yoy

TL 40.4bn

+ 23% yoy + 8% qoq

3,7 4,4 4,4 5,4

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

TL retail bonds 37.3 36.6 35.1 32.8 +30% yoy

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National Bank of Greece | Q1.14 Results

5,5% 5,8% 5,2% 5,4% 6,1%

6,0%

Q4.12 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

194 166 222 262 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

188 627

3M.13 3M.14

Pre Provision Margin (bps)

Pre-provision margin (bps) Provision Coverage Provision Charge (TL mn) NPL Formation

Q1.14 90dpd formation abates

Cost of Risk (bps)

75% 69% 71% 68% 71% Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

TL 218mn 184 bps

2.1x Cost of Risk

391 bps 184 bps

Segment review: Turkey

Benefits from TL 0.5bn retail NPL portfolio sale NPL ratio to benefit c.100bps in Q2.14 from TL 0.7bn retail NPL portfolio sale in May

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National Bank of Greece | Q1.14 Results CAR (%) vs. peers – Q1.14 Capital Adequacy

Strong capital adequacy and low leverage support balance sheet expansion

(TRY mn) Q1.14 Core Tier I 7 521 Tier II and Deductions 2 668 Total Capital 10 188 RWAs 63 510 Core Tier I Ratio 11.8% Total CAR 16.0% 13,5 14,3 14,5 15,1

Peer 1 Peer 4 Peer 2 Peer 3 Finansbank 16.0

BRSA Consolidated

Segment review: Turkey

Securities / Total Assets (%) – Q1.14

12,9 14,0 18,4 19,3 24,4

Peer 3 Finansbank Peer 4 Peer 1 Peer 2 14.0

BRSA Consolidated

78% 55% 76% 67% 53% AFS / Total Securities

Assets / Equity (x) – Q1.14

8,9 8,9 9,2 9,4 9,6

Finansbank Peer 2 Peer 3 Peer 1 Peer 4 8.9

BRSA Consolidated

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National Bank of Greece

Q1.2014 Results: Southeastern Europe

slide-22
SLIDE 22

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National Bank of Greece | Q1.14 Results

Segment review: SEE

SEE: profitable, self funded and well capitalized

SEE business remains profitable: – Q1.14 PAT at €14mn (+8% yoy) – NII and fees continue recovering in Q1, up by 9% yoy – NIM picks up (+22bps qoq) as funding costs improve – Cost containment is sustained , -4% yoy Overall PPI up by 27% yoy Liquidity improves as deposits grow and credit conditions remain tight: – Deposits +2% yoy, deleveraging continues (loans -3% yoy) – L:D ratio at 101% – Commercial gap at €28mn in Q1 vs €1.52bn in Dec.11

€ mn Q1.14 Q1.13 yoy% Q4.13 qoq% NII 67 62 +9% 66 +1% Net fees 20 18 +9% 21

  • 4%

Core Revenues 87 80 9% 87 +0% Trading & other income 2 4

  • 43%

2 +33% Income 90 84 +7% 89 +1% Operating Expenses (51) (53)

  • 4%

(55)

  • 7%

Pre-provision earnings 39 30 +27% 34 +14% Provisions (21) (16) +35% (12) +70% Operating Profit 17 15 +18% 21

  • 19%

Other impairment (1) (2)

  • 50%

(4)

  • 75%

Taxes (2) 1

  • (2)

+13% Net income 14 13 +8% 15

  • 7%

Pre-Provision Earnings

Highlights P&L Account

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SLIDE 23

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National Bank of Greece | Q1.14 Results

322 313 312 332

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

30 30 30 34

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Segment review: SEE

Asset yields and funding cost

213 217 220 247

284

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Pre-provision margin +37bps qoq

284bps

Pre-prov. +14% qoq

€39mn Pre-provision earnings

NIM

354bps

62 62 62 66

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Income

NII +1% qoq

€67mn

NIM(+22bps qoq) benefits from declining funding costs and increased asset yields

53

Q1.13 Q1.14

Opex and C:I

C:I

57%

€51mn

64 64 64 62

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

OpEx 7,4 7,3 7,6 7,4 7,6 6,17% 5,98% 5,79% 5,88% 5,69% 3,42% 3,24% 3,03% 2,67% 2,35% Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Funding cost

  • 32bps qoq
  • 107 bps yoy

Asset yield

  • 19bps qoq
  • 48bps yoy
  • 4% yoy

18 19 21 21

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

Fees

  • 4% qoq

€20mn

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SLIDE 24

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National Bank of Greece | Q1.14 Results

6,4 6,3 6,3 6,2 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 Q1.13 Q1.14 Q1.13 Q1.14 Q1.13 Q1.14 Q1.13 Q1.14 Q1.13 Q1.14

Segment review: SEE

Deposits Deposits per country Loans

Balanced liquidity profile as deposit gathering combines with minor deleveraging

5,2 5,3 5,6 5,5 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

€5.4bn

+2% yoy

  • 2% qoq

€2.6bn

+2% yoy

  • 3%qoq

€0.8bn

  • 1% yoy
  • 7% qoq

€1.0bn

+5% yoy +0% qoq

€0.7bn

+2% yoy

  • 0% qoq

€0.2bn

+9% yoy +3% qoq Bulgaria Romania FYROM Serbia Albania

€6.2bn

  • 3% yoy

0% qoq

Loans:Deposits

108% 104% 99% 99% Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 L:D

  • 7pps yoy

+2pps qoq

101% Commercial gap

1.357 414 28

Q1.12 Q1.13 Q1.14

Commercial gap €mn (net loans – deposits) Down from peak of 200%

retail corporate

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page 25

National Bank of Greece | Q1.14 Results

49% 51% 51% 52%

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

+90dpd ratio Cash coverage % +90dpd generation (€m) Charge-offs & Cost of Risk

203 246 130 90 Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

provision run rate

155bps

charge-offs

€21mn

29 34 18 12

  • 13

Q1.13 Q2.13 Q3.13 Q4.13 Q4.13

52%

90dpd generation –although volatile due to corporate delinquencies– remain low

Segment review: SEE

41 8 14

  • 47

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14 49% 46% 90% 59% Bulgaria Romania FYROM Serbia

24,1% 24,4% 24,6% 23,9%

24,8%

Q1.13 Q2.13 Q3.13 Q4.13 Q1.14

corporate recoveries

  • incl. corporate

recoveries

€47mn

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SLIDE 26

National Bank of Greece

Appendix

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SLIDE 27

page 27

National Bank of Greece | Q1.14 Results

NBG Group: Summary Financials

Balance Sheet

Appendix

€ mn Q1.14 Q1.13 yoy% Q4.13 qoq% Cash & Reserves 5 881 5 895

  • 0%

5 910

  • 0%

Interbank placements 3 082 3 750

  • 18%

2 847 +8% Securities 26 126 18 041 +45% 26 522

  • 1%

Loans (gross) 70 450 70 908

  • 1%

70 140 +0% Provisions (9 080) (7 610) +19% (8 851) +3% Goodwill & Intangibles 1 707 2 159

  • 21%

1 708 0% Tangible assets 2 074 1 780 +17% 1 755 +18% Other assets 11 274 9 231 +27% 10 899 +8% Total Assets 111 964 104 154 +7% 110 930 +1% Interbank & Securities Repos 25 043 31 670

  • 21%

27 898

  • 10%

Due to customers 65 888 60 486 +9% 62 876 +5% Debt securities 3 879 3 787 +2% 3 807 +2% Other liabilities 9 060 9 937

  • 9%

8 474 +7% Hybrids 80 170 53%- 80 +0% Minorities 694 71 >100% 684 +1% Equity 7 320 (1 968)

  • 7 111

+3% Total liabilities & equity 111 964 104 154 +8% 110 930 +1%

Consolidated Profit & Loss Account

€ mn Q1.14 Q1.13 yoy% Q4.13 qoq% NII 751 772

  • 3%

776

  • 3%

Net fees 129 135

  • 4%

136

  • 5%

Insurance income 20 14 39% 17 +18% Trading & other income 44 (7)

  • 131
  • 66%

Income 944 915 +3% 1 060

  • 11%

Operating Expenses (506) (563)

  • 10%

(638)

  • 21%

Pre-Provision Earnings 438 352 +25% 422 +4% Loan Provision Charges (362) (428)

  • 15%

(388)

  • 7%

Core Profit 76 (76)

  • 34

>100% Other impairments (5) 276

  • 4
  • Cash PBT

71 200

  • 64%

38 +87% Taxes (20) (7) 100% (18) +11% Minorities & non cash chrg (13) (7) 86% (4) >100%

  • Attrib. PAT (before one-offs)

38 186

  • 80%

16 >100% DTA & other one-offs 143 (159)

  • 531
  • 73%

Attributable PAT 181 27 >100% 547

  • 67%
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page 28

National Bank of Greece | Q1.14 Results

Turkey: Summary Financials

Summary Balance Sheet

TL mn Q1.14 Q4.13 qoq% Q1.13 yoy% Cash & reserves 8 602 8 256 +4% 6 602 +30% Interbank placements 5 070 2 377 >100% 930 >100% Investment & Trading Securities 8 773 9 021

  • 3%

6 845 +28% Loans (net) 48 500 46 034 +5% 41 833 +16% Tangible assets 1 514 555 >100% 489 >100% Goodwill & intangibles 217 211 +3% 187 +16% Other assets 5 093 4 505 +13% 1 406 >100% Total Assets 77 770 70 958 +10% 58 291 +33% Interbank liabilities 11 532 8 459 +36% 3 315 >100% Due to customers 40 367 37 290 +8% 32 810 +23% Borrowed funds 11 001 10 722 +3% 9 071 +21% Other liabilities 4 897 4 726 +4% 4 148 +18% Minorities 168 155 +8% 155 +9% Equity 9 805 9 606 +2% 8 792 +11% Total liabilities & equity 77 770 70 958 +10% 58 291 +33%

Appendix

TL mn Q1.14 Q4.13 qoq% Q1.13 yoy% Net interest income 770 787

  • 2%

788

  • 2%

Net fees 280 254 +10% 255 +10% Trading & other income (9) (2) >100% 60

  • Income

1 041 1 039 +0% 1 103

  • 6%

Operating expenses (579) (667)

  • 13%

(457) +27% Pre-provision earnings 462 372 +24% 647

  • 29%

Provisions (218) (262)

  • 17%

(194) +12% Income tax (52) (16) >100% (89)

  • 42%

Minority (0)

  • (1)
  • 50%

Attributable PAT 192 95 >100% 362

  • 47%

Profit & Loss Account

slide-29
SLIDE 29

Petros Christodoulou

Deputy CEO +30210 334 3909 pchristodoulou@nbg.gr

National Bank of Greece

Contact details

This presentation is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading

  • strategy. No part of this presentation may be construed as constituting investment advice or recommendation to enter into any transaction. No

representation or warranty is given with respect to the accuracy or completeness of the information contained in this presentation, and no claim is made that any future to transact any securities will conform to any terms that may be contained herein. Before entering into any transaction, investors should determine any economic risks and benefits, as well as any legal, tax, accounting consequences of doing so, as well as their ability to assume such risks, without reliance on the information contained in this presentation.

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