Q2.16 Financial Results August 31, 2016 Important Notice Forward - - PowerPoint PPT Presentation

Q2.16 Financial Results

August 31, 2016

1 National Bank of Greece Q2.16 results

No representation or warranty, express or implied, is or will be made in relation to, and no responsibility is or will be accepted by National Bank of Greece (the Group) as to the accuracy or completeness of the information contained in this presentation and nothing in this presentation shall be deemed to constitute such a representation or warranty. Although the statements of fact and certain industry, market and competitive data in this presentation have been

• btained from and are based upon sources that are believed to be reliable, their accuracy is not guaranteed and any

such information may be incomplete or condensed. All opinions and estimates included in this presentation are subject to change without notice. The Group is under no obligation to update or keep current the information contained herein. In addition, certain of these data come from the Group’s own internal research and estimates based on knowledge and experience of management in the market in which it operates. Such research and estimates and their underlying methodology have not been verified by any independent source for accuracy or completeness. Accordingly, you should not place undue reliance on them. Certain statements in this presentation constitute forward-looking statements. Such forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. As a result, you are cautioned not to place any reliance on such forward-looking statements. Nothing in this presentation should be construed as a profit forecast and no representation is made that any of these statement or forecasts will come to

• pass. Persons receiving this presentation should not place undue reliance on forward-looking statements and are

advised to make their own independent analysis and determination with respect to the forecast periods, which reflect the Group’s view only as of the date hereof.

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Important Notice – Forward Looking Information

Table of Contents 1

Financial Highlights

2

Liquidity

3

Profitability

4

Asset quality

5

Capital

6

Macro

7

Appendix

Financial Highlights

1

4 National Bank of Greece Q2.16 results

€ m 1H16 1H15 yoy 2Q16 1Q16 qoq NII 961 959 0% 482 479 +1% Fees & Commissions1 149 150

• 1%

76 73 +4% Pillar-2 costs (45) (91)

• 51%

(15) (30)

• 50%

Insurance income 41 63

• 35%

23 18 +30% Trading & other income (49) (30) 63% (43) (6) >100% Income 1,058 1,051 1% 524 534

• 2%

Operating Expenses (628) (641)

• 2%

(319) (309) +3% Core PPI 478 440 9% 247 231 +7% PPI 429 410 5% 205 225

• 9%

Provisions (365) (2,680)

• 86%

(208) (158) +32% Operating Profit 64 (2,271) n/m (3) 67 n/m Other impairments (46) (171)

• 73%

(12) (34)

• 66%

PBT 18 (2,442) n/m (15) 33 n/m Taxes (15) 535 n/m (9) (7) +34% PAT (cont. ops) 3 (1,908) n/m (23) 26 n/m PAT (discount. ops) (2,957) 150 n/m (3.028) 71 n/m Minorities (21) (15) 34% (10) (10) 0% Other one-offs

• n/m
• n/m

Attributable PAT2 (2,975) (1,773) 68% (3.062) 87 n/m

P&L Highlights

• 1. Excludes Pillar-2 costs
• 2. Group attributable income includes a loss of €3,095m which reflects the recycling of losses recognized in other comprehensive income related to Finansbank. This loss has already been recognized in the Group’s equity and CET1 capital in prior periods, therefore has

no impact on the Group’s equity and CET1 capital in Q2.16

H1.16 Group PAT from continued operations breaks even at € 3m

Highlights

Group P&L

Q2 Group core PPI at €247m, driven by domestic core PPI, up by 10% qoq

• Domestic core income is driven by funding cost improvements as time

deposit repricing continued unabated in Q2 (-19bps qoq), ELA was reduced further (-€4.9bn qoq) and Pillar II exposure dropped further and was eliminated in July allowing for the Government representative to leave the Board

• H1.16 OpEx in Greece, down by 3% yoy, driven by both personnel

(-2.9% yoy) and G&A (-4.3%); future VRS savings will provide further cost containment

• Q2 domestic provisioning run rate at 231bps vs 164bps in Q1, due to

credit charges relating to a limited number of corporate defaults during Q2. H1.16 CoR at 197bps, or 189bps at Group level

• Q2 trading income includes €35m related to the VISA transaction

H1.16 Group PAT2 from continued operations breaks even at €3m, reflecting domestic core income growth and CoR reduction relative to 2015 Positive recurring PAT contribution from our SEE international business rises to €52m in H1, +98% yoy

5 National Bank of Greece Q2.16 results

Improving liquidity profile, substantially reduced NPE stock, strong capital position

Liquidity, Asset Quality & Capital Highlights Key Ratios - Group

2Q16 1Q16 4Q15 3Q15 2Q15 Liquidity L/D ratio 91% 92% 91% 96% 99% ELA exposure (€ bn) 6.1 11.0 11.5 15.6 17.6

• /w Pillar exposure (nominal)2

2.4 7.1 11.8 18.0 16.9 Profitability NIM (bps) 285 280 280 279 264 Cost / Core income 56% 57% 64% 64% 62% Asset quality NPE ratio 45.8% 47.3% 46.8% 45.1% 43.5% NPE coverage ratio 54.3% 53.0% 52.8% 52.2% 52.4% Cost of Risk (bps) 216 162 746 251 2 195 Capital CET1 phased-in 16.8%1 17.2%3 17.5%3 9.6% 9.5% CET1 ratio CRD4 FL 16.2%1 16.7%3 16.8%3 8.8% 8.7% RWAs (€ b) 40.51 40.43 40.33 60.7 62.9

1. Pro-forma for Astir Palace and NBGI divestments and CoCos repayment, 2. Pillar II zero as of July 2016 3. Pro forma for Astir Palace, NBGI divestments, Finansbank sale and CoCos repayment,

Significant ELA reduction and elimination of Pillar II and III exposure

• ELA reduced by an impressive €6b from end Q1.16, resulting into a current exposure of just

€5.0b, underscoring NBG’s unique liquidity profile

• Elimination of Pillar II and III exposure, reduces fee costs by half in Q2.16; implies an

annualized funding cost saving of ca €200m compared with 2015

• Regain access to repo market with EFSF bonds currently at €3.4b
• L:D ratio at 91% in Greece and the Group
• Domestic deposits broadly stable in Q2, +€300m qtd

1st Quarter of NPE stock reduction, excluding write offs

• The stock of NPEs contracts for the first time (-€0.9bn qoq) reflecting the combined positive

impact of favourable formation trends, curing and write offs

• Domestic 90dpd retail formation remains negative (-€98m); all retail segments, including SB,

recorded negative formation

• Domestic 90dpd corporate formation edges sharply lower qoq but remains elevated due to a

small number of corporate exposures lapsing into default

• H1.16 domestic CoR at 197bps; NPE coverage at an industry leading 55% (+140bps qoq)
• UBB ranked top among peers with excellent results in both the AQR and the ST, confirming a

solid capital position with CET1 adjusting by just 40bps to 25.7%. CET 1 pro forma1 ratio at 16.8%

• CET1 ratio on a CRD IV FL basis at 16.2%1, including CoCos, CET 1 at 21.6%
• Group RWAs at 40.5b1 of which €34.7b in Greece (phased in)
• Capital adequacy to be further enhanced by implementation of the restructuring plan

Highlights

Liquidity

2

7 National Bank of Greece Q2.16 results

Eurosystem funding (€ bn)

• 1. Latest available data
• 2. Excl. EFSF & ESM bonds

ELA drops by €6bn to just €5bn, underscoring NBG’s unique liquidity advantage

Liquidity

Peer group analysis1: liquidity position

14.2 9.8 10.0 10.1 12.5 11.8 8.9 8.2 13.9 17.6 15.6 11.5 11.0 6.1 5.0 14.2 23.6 27.6 25.6 24.0 22.8 14.9 13.2

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Aug

€ 3.6bn repo placed with the market

• ver the past

5 months 5.0 13.5 15.4 18.3 NBG Peer 1 Peer 2 Peer 3 8% 24% 29% ELA / Assets2 L:D ratio 91% 150% 144% 20% 127% ELA exposure (€ bn)

8 National Bank of Greece Q2.16 results

Eurosystem collateral cash values (€ bn) | Aug 2016

Pillar II and III exposure fully repaid

Liquidity

Pillar II & Pillar III eliminated

9.9 6.4 3.8 1.8 5.7 5.1 7.2 4.3 15.6 11.5 11.0 6.1 5.0 9.8

ELA Sep-15 ELA Dec-15 ELA Mar-16 ELA Jun-16 ELA Aug-16 Undrawn liquidity

Other ELA collateral (cash value) Pillar-2 & 3 bonds (cash value) No Pillar exposure EFSF / ESM 6.3 Other 1.9 1.2 11.0 2.4 14.6

• Cov. bonds

Credit claims Other ECB: € 8.2bn Cash value of eligible collateral: € 22.9bn

9 National Bank of Greece Q2.16 results

• 2.2
• 4.8
• 3.6

0.3 0.8

• 0.9

0.0 0.3

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 qtd

Deposit evolution by geography (€ bn)

35.5 35.8 36.6 35.7 35.7 6.0 6.1 6.3 6.3 6.5 2Q15 3Q15 4Q15 1Q16 2Q16

Deposits stabilize in Q2, increasing in Q3

Liquidity

Greek deposit flows per quarter (€ bn)

YoY +0.6% +8.1% Group ex-TUR SEE & Other Greece 41.5 41.9 43.0 42.0 42.2 +1.7%

+0.9% +2.2%

• 2.5%

0%

• €10.6 bn

+€0.5 bn

10 National Bank of Greece Q2.16 results

45.8 44.9 44.7 44.3 44.0 7.6 7.6 7.3 7.2 7.1 2Q15 3Q15 4Q15 1Q16 2Q16 98% 94% 90% 91% 91% 99% 96% 91% 92% 107% 104% 97% 96% 92% 2Q15 3Q15 4Q15 1Q16 2Q16

L:D ratio evolution

L:D ratio steady at 91%

Gross loan evolution by geography (€ bn)

Liquidity

Group Greece SEE & Other SEE &

• ther

Greece 53.4 52.5 52.0 51.5 51.1 YoY

• 3.9%
• 7.0%
• 4.3%

Group ex-TUR

• 0.5%
• 2.0%
• 0.9%
• 0.7%

Profitability

3

12 National Bank of Greece Q2.16 results

Group Core PPI decomposition by region (€ m)

155 139 153 189 207 43 41 37 42 40 198 180 190 231 247 2Q15 3Q15 4Q15 1Q16 2Q16

Domestic Core PPI recovery (+10% qoq, €207m), is driven by funding cost reduction and fee income growth

Profitability

Domestic Core PPI bridge

189 +4 +8 +15

• 9

207 1Q16 ΔNII Δfees & Insurance Δ Pillar II costs ΔOpEx 2Q16 Greece SEE & Other

• 5%

+10% qoq +10% qoq +7%

13 National Bank of Greece Q2.16 results

SEE & Other Greece

379 389 392 396 400 249 267 269 268 274 2Q15 3Q15 4Q15 1Q16 2Q16 NII (€m) NIM (bps)

Domestic NII picks up on the back of improving funding costs

Profitability

Domestic NII quarterly evolution (€ m) Domestic NII breakdown

396

• 11

+9 +4

• 2

3 400

1Q16 Δloans Δdepos ΔEurosystem & wholesale ΔSecurities Subs & other 2Q16

84 83 82 83 83 354 356 355 361 355 2Q15 3Q15 4Q15 1Q16 2Q16 NII (€m) NIM (bps) 2Q15 3Q15 4Q15 1Q16 2Q16 Loans 430 434 411 395 384 Deposits

• 94
• 80
• 69
• 55
• 46

Bonds 83 85 86 85 83 Eurosystem & wholesale

• 54
• 58
• 49
• 40
• 36

Subs & other 12 10 13 11 14 Total 379 389 392 396 400 NII +€4m qoq, excludes +€15m funding cost saving qoq from Pillar II exposure accounted for in fees

14 National Bank of Greece Q2.16 results

14.2 16.4 17.4 17.7 17.8 6.2 6.5 7.4 6.6 6.8 15.1 13.0 11.8 11.5 11.1 35.5 35.8 36.6 35.7 35.7 2Q15 3Q15 4Q15 1Q16 2Q16 Time Sight &

• ther

Savings

• 0.1% qoq

Greek deposit yields (bps)

25 25 24 24 20 185 185 163 132 113 101 90 77 62 51 2Q15 3Q15 4Q15 1Q16 2Q16

Time deposit yields drop by 19bps qoq, new production at 85bps

Profitability

Greek deposits evolution (€ bn)

Time Total New production yield at 85 bps 57% 64% 68% 68% 69% Core deposits/total Mkt share 35% Core

15 National Bank of Greece Q2.16 results

Greek lending yields (bps)

263 262 264 261 258 933 934 956 953 947 652 673 658 672 650 430 421 420 421 417 2Q15 3Q15 4Q15 1Q16 2Q16

Corporate lending yields resilient, despite market rates moving deeper into negative territory

Profitability

Greek loan evolution (€ bn)

18.0 17.8 17.7 17.5 17.3 5.5 5.5 5.5 5.4 5.4 4.2 4.1 4.1 4.0 4.0 18.1 17.6 17.5 17.4 17.4 45.8 44.9 44.7 44.3 44.0 411 408 408 409 404 2Q15 3Q15 4Q15 1Q16 2Q16 Corporate SBL Consumer Mortgages Consumer SBLs Corporate Mortgages Total lending yield (bps)

• 0.7% qoq

34.8 33.8 33.0 32.5 32.4 Net loans Gross loans

16 National Bank of Greece Q2.16 results

8 2 4 4 5 3 5 6 5 5 24 20 24 22 23 15 13 15 17 17 3 3 2 3 3 29 19 26 16 22 2Q15 3Q15 4Q15 1Q16 2Q16 Insurance Fund management Banking fees Corporate lending Retail lending Custody, brokerage

• inv. Banking

53 42 50 50 52 30 21 29 18 23 25 23 24 23 24 108 86 103 91 99 2Q15 3Q15 4Q15 1Q16 2Q16 Greece1 SEE & Other Insurance

Group fees & insurance income (€ m)

• 1. Excl. Pillar fee charges

Fee line recovery reflects Pillar II and III repayment as well as a pick-up in core fees

Profitability

Domestic fees1 & insurance decomposition (€ m)

• 48
• 53
• 54
• 30
• 15

Pillar 2 cost 0.52% 0.42% 0.50% 0.44% 0.47% Fees1/Assets 50 42 53 82 62 76 66 74

+4% +37% qoq

Total Total1 52 50

+12%

17 National Bank of Greece Q2.16 results

62% 65% 63% 56% 55% 2Q15 3Q15 4Q15 1Q16 2Q16

Domestic OpEx evolution (€ m) Group OpEx by category (€ m)

Domestic H1.16 costs, down by 3% yoy, support C:I recovery; upcoming VRS will provide further improvement

Profitability

Headcount evolution (‘000) Domestic cost-to-core income evolution

Greece Group 1H16 1H15 yoy 1H16 1H15 yoy Personnel 324 334

• 2.9%

393 401

• 1.9%

G&As 122 127

• 4.3%

176 181

• 2.9%

Depreciation 49 48 +2.3% 60 59 +0.5% Group 495 509

• 2.8%

628 641

• 2.0%

167 163 168 161 163 90 96 94 82 88 257 259 262 243 251 2Q15 3Q15 4Q15 1Q16 2Q16 15.0 12.2 12.0 12.3 10.1 7.9 7.8 7.7 25.1 20.1 19.8 20.0 FY09 1 FY14 FY15 2Q16 G&A &

• ther

Staff SEE & Other Greece Includes Astir Palace seasonal employment

18 National Bank of Greece Q2.16 results

Operating profit evolution (€ m)

SEE contributes €52m in Group PAT for H1.16, +98% yoy

Profitability

SEE headline figures

P&L items (€ m) 2Q16 1Q16 qoq 1H16 1H15 yoy NII 83 83

• 1.0%

166 167

• 0.8%

Core income 107 108

• 0.4%

215 216

• 0.4%

OpEx (67) (66) 2.6% (133) (132) 1.1% PPI 50 55

• 8.9%

105 90 16.9% Provisions (20) (24)

• 15.3%

(44) (55)

• 21%

Operating profit 30 31

• 4.1%

62 35 77.2% Net profit after min. 25 27

• 6.3%

52 26 98.1% 39 42 40 55 50

• 27
• 23
• 68
• 24
• 20

2Q15 3Q15 4Q15 1Q16 2Q16 Pre-provision income Provisions 12 18

• 28

31 30 Operating profit Selective ratios 2Q16 1Q16 1H16 1H15 Liquidity L/D ratio 92% 96% 92% 107% Profitability NIM (bps) 355 361 357 341 Cost / Core income 63% 61% 62% 61% Asset quality 90dpd ratio 26.5% 27.0% 26.5% 28.0% 90dpd coverage ratio 59.1% 58.3% 59.1% 54.1% Cost of Risk (bps) 133 155 144 177

Asset quality

4

20 National Bank of Greece Q2.16 results

75% 67% 69% 64% 33% 39% 38% 35% NBG Peer 1 Peer 2 Peer 3 41 406 86 127 2 2,302 232 671 134 188 2Q15 3Q15 4Q15 1Q16 2Q16

90dpd flows (€ m) Provisions (€ m)

Greece: 90dpd formation and provisions Greece: 90dpd ratio and coverage

74.9% 73.4% 76.8% 76.5% 76.6% 32.1% 33.8% 34.1% 34.7% 34.4% 2Q15 3Q15 4Q15 1Q16 2Q16

• 1. CoR (bps) adjusted for AQR charges, calculated on net loans
• 2. Texas Ratio: (NPLs-Provisions)/TBV
• 3. Peer comparison is based on latest available data

90dpd ratio levels off as formation trends improve

Asset Quality

Peer Group analysis3: asset quality (Group) Group: 90dpd ratio and coverage

72.3% 71.3% 74.6% 74.5% 74.7% 31.5% 33.0% 33.1% 33.6% 33.3% 2Q15 3Q15 4Q15 1Q16 2Q16 400 271 329 164 231 CoR1(bps) SEE & other: 90dpd ratio: 26.5% Coverage: 59.1% Coverage ratio 90dpd ratio 0.6x 1.2x 0.9x 1.2x Texas ratio2 Includes AQR Includes AQR Quarterly credit charges relate to a limited number of corporate defaults Stable excl. write-offs

21 National Bank of Greece Q2.16 results

71 121 154 281 37 122

• 133
• 117
• 70

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

SBLs (€ m) Mortgages1 (€ m)

6 31 36 53 85 35

• 3

10

• 13

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

• 1. Mortgage formation up to 3Q14 Is on 180dpd basis; 4Q14 onwards is on a 90dpd basis

Retail formation remains negative, corporate formation decelerates but remains affected by limited corporate defaults

Asset quality

Corporate (€ m) Consumer (€ m)

22 14 15 42 21 76

• 22
• 26
• 19

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

163 81 28

• 42
• 101

173 246 260 106

2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16

22 National Bank of Greece Q2.16 results

Domestic 90dpd restructuring flows (€ m) Domestic NPE stock evolution (€ bn) Mortgage roll-rates

14.7 15.2 15.3 15.4 15.1 6.1 6.1 6.7 6.6 5.9 20.8 21.3 22.0 22.0 21.1 2Q15 3Q15 4Q15 1Q16 2Q16 FNPEs & other impaired 90dpd

Q2 NPEs contract by almost €1bn reflecting favourable collection trends, curing and write-offs

Asset quality

831 627 485 356 1,072 510 812 609 381 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Benefits from €0.3bn of Q2 write-offs 10% 20% 30% 40% 50% 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 RR1-->2 RR2-->3 RR3-->4 45.4% 47.4% 49.2% 49.6% 47.9% NPE ratio

23 National Bank of Greece Q2.16 results

Domestic NPE ratios and coverage per segment Domestic 90dpd ratios per segment

• 1. Bank level

Coverage of 90dpd loans at 77%; most of FNPEs are less than 30dpd

Asset quality

Domestic forborne stock breakdown (€ bn) Domestic 90dpd – NPE bridge (€ bn)

Cash coverage Cash coverage 13% 55% 47% 25% 26% LLAs/ Gross loans 15.1 4.0 0.7 1.3 21.1 90dpd FNPE <30 FNPE 31-90 Other impaired NPEs 42% 97% 76% 102% 77% 31% 57% 62% 25% 34% Mortgages Consumer SBL Corporate Total GRE 29% 82% 67% 62% 55% 44% 67% 71% 40% 48% Mortgages Consumer SBL Corporate Total GRE FNPE<30 dpd 4.0 FNPE 31-90dpd 0.7 FNPE >90dpd 2.9 FPE 2.1

9.7

Collateral coverage1 78% 7% 52% 53% 54%

Capital

5

25 National Bank of Greece Q2.16 results

17.2% 16.8% 16.2% 1Q16 2Q16 CRD 4 fully loaded

Peer Group analysis2: CET1 Capital ratios3 Ordinary equity to CET 1 reconciliation (€ bn) CET 1 ratio

7.0 6.8 2.0

• 0.1

0.2

• 0.3

2.0 9.1 8.8 Ordinary equity GW & intangibles Minority interest Other CET1

• 1. Pro-forma for Astir Palace and NBGI divestments, and CoCos repayment
• 2. Peer comparison is based on latest available data
• 3. Excl. CoCos and State prefs.

CET1 ratio at 16.8%1; adding CoCos boosts ratios by 530bps

Capital

RWAs (€ bn) CET1: €7.0bn 16.2% 12.7% 16.2% 13.1% 16.8% 13.6% 16.6% 14.1% NBG Peer 1 Peer 2 Peer 3 CoCos Excluding CoCos (+530ps) TBV: €6.9bn Phased-in Fully loaded 40.4 40.5 CET1: €6.8bn 40.4 CET1: €6.6bn

QoQ delta due to: CoCo div, 2Q16 PAT and Reg. adj. &

• ther

Macro

6

27 National Bank of Greece Q2.16 results

GDP growth (y-o-y and q-o-q)

Source: EL.STAT., Greek MinFin, EU Commission, Bank of Greece

Unemployment rate and employment growth

+0.2% q-o-q &

• 0.9% y-o-y in Q2:16

and positive y-o-y growth in H2:2016 according to EU Commission forecasts

GDP deflator, HICP, core inflation & house prices (y-o-y)

• 4
• 3
• 2
• 1

1 2

• 12
• 9
• 6
• 3

3 6 2009:Q2 2009:Q4 2010:Q2 2010:Q4 2011:Q2 2011:Q4 2012:Q2 2012:Q4 2013:Q2 2013:Q4 2014:Q2 2014:Q4 2015:Q2 2015:Q4 2016:Q2

GDP (q-o-q, s.a., right axis) GDP growth (y-o-y, s.a., left axis)

% 5 10 15 20 25

• 10
• 6
• 2

2 6 May-08 Jan-09 Sep-09 May-10 Jan-11 Sep-11 May-12 Jan-13 Sep-13 May-14 Jan-15 Sep-15 May-16

Employment growth (left axis) Unemployment rate (right axis)

% y-o-y

GDP trends in H1:2016 bode well for a pick-up in economic activity in 2H, as deflation lowers, labor market conditions improve, and property price drops abate

• 85
• 75
• 65
• 55
• 45
• 35
• 25
• 15
• 5

5

• 50
• 40
• 30
• 20
• 10

10 20 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Industrial (left axis) Services (left axis) Retail (left axis) Consumer (right axis)

Greece - Business & consumer confidence indicators

• 15
• 10
• 5

5

• 15
• 10
• 5

5 2008:Q2 2008:Q4 2009:Q2 2009:Q4 2010:Q2 2010:Q4 2011:Q2 2011:Q4 2012:Q2 2012:Q4 2013:Q2 2013:Q4 2014:Q2 2014:Q4 2015:Q2 2015:Q4 2016:Q2

HICP (y-o-y) Core inflation (y-o-y) House prices (total, y-o-y) GDP deflator (y-o-y)

y-o-y

28 National Bank of Greece Q2.16 results

Current account balance (% GDP)

• 20
• 15
• 10
• 5

5

• 20
• 15
• 10
• 5

5 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016f Greece Euro area % GDP

Manufacturing production and capacity utilization Goods and services exports (y-o-y)

Source: EL.STAT., Bank of Greece, OECD, NBG Estimates

Economic rebalancing continues, driven by healthy exports and a further import adjustment, albeit capital controls constrain liquidity stressing smaller, domestically-oriented enterprises

60 65 70 75

• 15
• 10
• 5

5 10 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13 Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Capacity utilization (right axis) Manufacturing production (y-o-y, 3m m.a., left axis) % %

• 55
• 45
• 35
• 25
• 15
• 5

5 15 25

• 55
• 45
• 35
• 25
• 15
• 5

5 15 25 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Tourism receipts (y-o-y, 12m m.a.) Transportation (y-o-y, 12m m.a.) Other services (y-o-y, 12m m.a.) Exports of goods (excl.oil & ships, 12m m.a.) % % 70 80 90 100 110 120 70 80 90 100 110 120 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016f

Germany Ireland Greece Spain Portugal

Cost competitiveness – ULC based exchange rate

Index 2004=100, Performance relative to 37 industrial countries Capital controls

29 National Bank of Greece Q2.16 results

Source: EL.STAT., Greek MinFin, EU Commission (Compliance Report), Bloomberg,

• Gen. Government: Total and primary balance
• 9
• 7
• 5
• 3
• 1

1 3

• 9
• 7
• 5
• 3
• 1

1 3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2009 2010 2012 2013 2014 2015 2016

% GDP surplus deficit excluding SMP & ANFA revenue

EU funding and Gov. arrears clearance

• 12
• 10
• 8
• 6
• 4
• 2
• 12
• 10
• 8
• 6
• 4
• 2

2010 2011 2012 2013 2014 2015 2016

• Gen. Government Total balance
• Gen. Government Primary balance

Primary balance (Programme target) % GDP

The fiscal adjustment remains credible and official funding inflows, along with other positive effects from the completion of the 1st review, will offset the fiscal drag

Primary balance, 2015 (as % of GDP): +0.7% vs. target of -0.25%

State budget primary balance (% GDP) Greek & Portuguese 10y Gov. Bond yields

5 10 15 20 25 30 35 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16

Greece: 10y Government bond yield Portugal: 10y Government bond yield

% 1st Review completion, ECB waiver reinstatement, Brexit

• 1,0

0,0 1,0 2,0 3,0 4,0 H2:2015 H2:2016-2017 2018 Clearance of government arrears (negative sign stands for new arrears accumulation) EU funds % GDP

Appendix

7

31 National Bank of Greece Q2.16 results

Balance Sheet | Group

Group Balance Sheet & P&L

P&L | Group

€ m 2Q16 1Q16 4Q15 3Q15 2Q15 Cash & Reserves 1 974 1 873 2 208 1 982 2 074 Interbank placements 2 909 2 753 2 799 2 788 3 002 Securities 24 187 25 337 24 852 22 233 22 584 Loans (Gross) 51 133 51 512 51 969 52 477 53 444 Provisions (12 712) (12 909) (12 843) (12 357) (12 204) Goodwill & intangibles 143 142 147 259 273 Tangible assets 1 311 1 315 1 325 1 384 1 413 DTA 5 087 5 093 5 096 5 104 4 582 Other assets 9 143 8 686 7 912 8 089 7 791 Assets held for sale 742 27 941 27 767 28 580 30 233 Total assets 83 916 111 743 111 232 110 538 113 192 Interbank liabilities 20 278 25 003 25 166 26 948 28 963 Due to customers 42 184 42 047 42 959 41 890 41 496 Debt securities 1 276 1 279 1 252 1 960 1 874 Other liabilities 10 113 9 621 8 387 8 836 8 535 Hybrids

• 83

83 Liabilities held for sale 301 23 931 23 643 23 555 24 028 Minorities 701 735 725 724 714 Equity 9 064 9 128 9 100 6 543 7 500 Total liabilities and equity 83 916 111 743 111 232 110 538 113 192

Appendix

€ m 2Q16 1Q16 4Q15 3Q15 2Q15 NII 482 479 474 472 463 Net fees 61 43 21 13 30 Insurance income 23 18 29 21 30 Core Income 567 540 524 506 523 Trading & other income (43) (6) 108 (178) 80 Income 524 534 632 328 603 Operating Expenses (319) (309) (333) (325) (325) Core Pre-Provision Income 247 231 190 180 198 Pre-Provision Income 205 225 298 3 278 Provisions (208) (158) (739) (256) (2 329) Operating Profit (3) 67 (441) (253) (2 051) Other impairments (12) (34) (247) (51) (134) PBT (15) 33 (688) (304) (2 185) Taxes (9) (7) (62) 518 540 PAT (cont. ops) (23) 26 (750) 214 (1 645) PAT (discount. ops) (3 028) 71 (1 160) (595) 34 Minorities (10) (10) (2) (12) (5) Other one-offs

• (138)

(9)

• Attributable PAT

(3 062) 87 (2 050) (401) (1 616)

Group attributable income includes a loss of €3,095m which reflects the recycling of losses recognized in other comprehensive income in previous periods and relates mainly to foreign currency translation differences from the translation of Finansbank’s assets and liabilities in Euro, in accordance with IFRS. This loss has already been recognized in the Group’s equity and CET1 capital in prior periods, therefore has no impact on the Group’s equity and CET1 capital in Q2.16

32 National Bank of Greece Q2.16 results

Greece

Regional P&L: Greece, SEE & other

Appendix

SEE & Other

€ m 2Q16 1Q16 4Q15 3Q15 2Q15 NII 400 396 392 389 379 Net fees 37 20 (3) (10) 5 Insurance income 22 16 26 19 29 Core Income 459 432 415 398 413 Trading & other income (52) (19) 105 (178) 84 Income 407 413 520 219 497 Operating Expenses (252) (243) (262) (259) (257) Core Pre-Provision Income 207 189 153 139 155 Pre-Provision Income 155 170 258 (39) 240 Provisions (188) (134) (671) (232) (2 302) Operating Profit (33) 35 (413) (271) (2 062) Other impairments (10) (34) (242) (51) (134) PBT (44) 2 (655) (322) (2 196) Taxes (5) (3) (62) 521 543 PAT (49) (1) (717) 199 (1 653) € m 2Q16 1Q16 4Q15 3Q15 2Q15 NII 83 83 82 83 84 Net fees 24 23 24 23 25 Insurance income 1 2 3 2 1 Core Income 107 108 109 108 110 Trading & other income 10 13 3 1 (4) Income 118 121 112 109 106 Operating Expenses (67) (66) (72) (67) (68) Core Pre-Provision Income 40 42 37 41 43 Pre-Provision Income 50 55 40 42 39 Provisions (20) (24) (68) (23) (27) Operating Profit 30 31 (28) 18 12 Other impairments (1) (0) (5) (1) (1) PBT 29 31 (33) 18 11 Taxes (3) (4) (0) (2) (3) PAT 26 27 (33) 15 9

Contact details

Paul Mylonas Deputy CEO +30210 334 1521 pmylonas@nbg.gr Greg Papagrigoris Head of IR +30210 334 2310 papagrigoris.gr@nbg.gr ir@nbg.gr Anthony Kouleimanis Investor Relations +30210 334 3037 akouleimanis@nbg.gr ir@nbg.gr

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.

Ioannis Kyriakopoulos Group CFO +30210 334 3051 ikyriakopoulos@nbg.gr Maria Kanellopoulou Investor Relations +30210 334 1537 mkanellopoulou@nbg.gr ir@nbg.gr Ilias Katsikalis Investor Relations +30210 334 1401 katsikalis.ilias@nbg.gr ir@nbg.gr