Upload
others
View
5
Download
0
Embed Size (px)
Citation preview
F I N A N C I A L R E S U L T S P R E S E N T A T I O NΗ 1 2 0 1 7 P I R A E U S G R O U P F I N A N C I A L R E S U L T S
3 0 A U G U S T 2 0 1 7
2
C O N T E N T S
01 Η117 HIGHLIGHTS
02 Η117 DEVELOPMENTS
03 ASSET QUALITY
04 LIQUIDITY
05 APPENDIX
01
3
Η 1 1 7 H I G H L I G H T S
11 Η117 AT A GLANCE
12 KEY FIGURES
13 SELECTED RATIOS
14 OPERATING PERFORMANCE
15 LIQUIDITY
16 NPL NPE DEVELOPMENT
17 COVERAGE RATIOS
18 NPL NPE OPERATIONAL TARGETS
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
110 CAPITAL
111 GREEK MACRO UPDATE
Note as of Q12017 the operations of two domestic subsidiaries namely Olympic SA (Avis Greece) andImithea SA (HDunant hospital) were recorded as discontinued On top as of Q22017 the Bankrsquosoperations in Serbia (Piraeus Bank Beograd and the local leasing subsidiary) have been also classifiedas discontinued All PampL figures mentioned for 2016 and H12017 have been restated accordingly
4
11 H12017 AT A GLANCE
PampL
bull H1 result attr to SHs from continued ops at break-even Q2 at +euro7mn
bull Net revenues at euro1131mn in H1 +3 yoy
bull Operating costs at euro582mn in H1 -5 yoy
bull Cost to income ratio for H1 at 51 from 56 a year ago
bull Pre provision income at euro549mn in H1 +14 yoy
NPLs|NPEsbull NPL stock down to euro23bn in June -euro29bn yoy
bull NPL formation back in negative territory (-euro329mn) in Q2
bull NPE operational target attained for 3rd quarter in a row -euro2bn yoy
Liquidity
bull Deposits in Greece +euro02bn in Q2 reversing the downward trend of Q1
bull +euro03bn in Q3 till mid-August LDR at 113 down from 116 in Q1
bull Eurosystem reliance at euro158bn -euro5bn ytd ELA at euro85bn in late August
bull ΕFSF|ESM holdings at euro85bn in June down euro47bn ytd
Re-sizing
bull Disposal of Avis Hellas [SPA initiatedin the process of finalizing legal documentation]
bull Disposal of Hellenic Seaways stake [SPA signed]
bull Classification of Serbian operations as discontinued
bull Greek footprint at 639 units -39 yoy FTEs at 13928 -1030 respectively
| H12017 HIGHLIGHTS
Operating profitability improving
NPL amp ΝPE stock down for 7th consecutive quarter in Q2
Deposit outflows have eased since early Mar17
Making progress against restructuring plan commitments
5
12 KEY FIGURES01
Group euro bn|mn Greece Intrsquol Jun17 Jun16 yoy
Total Assets 686 53 739 847 -13
Gross Loans 589 31 620 662 -6
Net Loans 440 24 464 489 -5
Loan Loss Reserves 149 08 157 173 -9
Customer Deposits 382 27 409 388 5
Eurosystem Funding - - 158 268 -41
Equity - - 97 99 -2
NII amp NFI 956 80 1036 1047 -1
Net Revenues 1048 83 1131 1093 3
Operating Costs 514 68 582 610 -5
Pre Provision Income 534 15 549 484 14
Impairment on Loans 504 14 518 492 5
Net Result attr to SHs 2 (2) 0 (13) -
Branches () 639 230 869 939 -7
Employees () 13928 3160 17088 18525 -8
+euro21bn inflows of customer deposits yoy
euro110bn reduction of Eurosystem funding yoy
flattish sum of NII amp NFI yoy both Group amp Greece
euro549mn PPI +14 yoy +17 in Greece
euro7mn Group Q2 result euro14mn in Greece
breakeven Group Q2 bottom line euro2mn in Greece
-7 footprint optimization yoy
-8 headcount reduction yoy
| H12017 HIGHLIGHTS
6
13 SELECTED RATIOS01
371 NPL ratio -210ppts yoy
682 NPL coverage 685 in Greece
523 NPE ratio with 45 cash coverage
271bps NIM with NFI over assets at 50bps
51 Cost to income in Q2 49 in Greece
169 CET-1 with 165 fully loaded CET-1 ratio
Group Greece Intrsquol Jun17 Jun16
Liquidity
Loan Deposits 115 87 113 126
Eurosystem Assets - - 25 40
Profitability
NIM 272 261 271 269
NFI Assets 050 059 050 046
Cost Income 49 82 51 55
Cost of Risk ( of net loans) 23 12 22 20
Capital
CET-1 (phased-in) - - 169 168
CET-1 (fully loaded) - - 165 160
Asset Quality
gt90dpd ratio 370 382 371 392
gt90dpd coverage ratio 685 631 682 668
NPE ratio 525 486 523 521
NPE coverage 449 457 450 470
Note ratios over assets exclude EFSF|ESM bonds and discontinued operations
| H12017 HIGHLIGHTS
7
14 OPERATING PERFORMANCE01
euro mn
952 920 1033
257 292
2014 2015 2016 Q117 Q217
CoR
PPI
-3718-3487
-1015
-259 -259
Operating Jaws
bps on net loans 2014 2015 2016 Q117 Q217
PPI 172 178 208 218 252
CoR 672 673 204 220 223
jaws -500 -495 +4 -2 +29
Group euromn Q217 Q117 qoq H117 yoy
NII 436 437 0 873 -2
NFI 82 81 2 162 7
Other 65 30 gt100 95 -23
Revenues 584 547 7 1131 -3
OpEx (292) (290) 1 (582) -5
PPI 292 257 13 549 19
Loan charge (259) (259) 0 (518) 5
Other charges (18) (11) - (30) -
Net result 7 (7) - 0 -
H117 PPI +14 yoy Bottom Line at Breakeven
Notes (a) recurring PampL data ie excluding one-off items ratios over assets excl ΕFSF|ESM bonds(b) PampL for 2016 excl extraordinary financial gain of euro77mn from the sale of Visa Europe stake
| H12017 HIGHLIGHTS
Note data exclude Serbia for Q1 and Q22017
8
15 LIQUIDITY01
ELA down by euro07bn qoq in Q2 at euro103bn vs 2015 peak of euro22bn
1
2 Eurosystem funding decreased by euro51bn in H1
Interbank repos at euro52bn in Q2 incl euro06bn with non-ECB eligible
collateral
Domestic Deposits (eurobn)
Eurosystem Funding (eurobn)
3
4
5
Positive deposit movement in Q2 in Greece
Zero reliance of L3723 as of April 2016
-29
209
373327
-23-34
-55
141 -31+04
158
-08
Dec14 Jun15 Dec15Δ Q116Δ Q216Δ Q316Δ Q416Dec16Δ Q117Δ Q217 Jun17 Δ Jul17
351 361
-10
+04 +09 +29
495
393
-13
+02 382 +03
Dec14 Jun15 Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217 Jun17 Δ Jul17
Q317
- deposit increase qtd gteuro03bn till mid August
- ELA use has dropped to euro85bn [late August]
ΕLA from euro103bn in June at euro85bn in late August
| H12017 HIGHLIGHTS
6 Continued participation to ESM bond exchange
52 52
279269
264259
253
244241
230
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
382
369 369 368 367 362355 349
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
4037
01
9
16 NPL NPE DEVELOPMENT
1
2
NPL stock marked a drop of euro11bn qoq and euro49bn from Sep15peak
Q217 NPL formation at -euro04bn back on track
Q217 write-offs at euro07bn
SSM NPL operational target attained for Q217 (-euro12bn)
NPΕ reduction of euro20bn in the last 12 months and euro33bn fromSep15 peak
Q217 ΝPE formation marginally negative (-euro005bn)
SSM NPE operational target attained for 3rd quarter in a row
NPL Development amp Ratio (eurobn|)
NPE Development amp Ratio (eurobn|)
-euro49bn
-euro33bn
| H12017 HIGHLIGHTS
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
10
17 COVERAGE RATIOS01
NPL coverage including tangible collateral at 110
Group NPL coverage remained flattish qoq to 682 (+23bps qoq) while domestic slightly increased to 685 (+36bps qoq)
74
40
76 6875
39
7768
Business Mortgages Consumer Total
Mar17
Jun17
business NPLs comprise 68
of total
Group NPE coverage at 45 while including tangible collateral it is 94
1
2
3
NPL Coverage ()
48
29
65
4647
28
64
45
Business Mortgages Consumer Total
Mar17
Jun17
NPE Coverage ()
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
| H12017 HIGHLIGHTS
Jun17Provision coverage
Collateral coverage
Total
NPL 68 41 110
NPE 45 49 94
01
11
18 NPL NPE OPERATIONAL TARGETS
bull Piraeus aims at reducing parent stock of NPEs by 38 from Jun17
(euro326bn) to Dec19 (euro203bn)
bull NPLs at parent level are also targeted to be reduced by 53 from
Jun17 (euro217bn) to Dec19 (euro102bn)
bull The reduction until 2019 will be driven by
restructurings collections liquidations write-offs selected sales
Operational Targets Submitted to SSM | Parent Data
2016 2017 2019
in eurobn June September December March June December
actual target actual target actual target αctual target αctual target
NPLsgt90dpd 244 239 239 233 232 223 230 211 217 102
NPEs 342 344 341 343 338 339 333 329 326 203
218267
223 203
102
109-59
-44 -20101
326
203
Jun17 Write-Offs RestructuringsCollectionsLiquidations
SelectedSales
2019
NPEs
NPLs
| H12017 HIGHLIGHTS
Overall Operational target attained Quarterly target attainedNotes
3834
Jun16 Jun17
4645
Jun16 Jun17
244
217
Jun16 Jun17
01
12
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro01bn
3329
Jun16 Jun17
165
144
Jun16 Jun17
342326
Jun16 Jun17
6264
Jun16 Jun17
242228
Jun16 Jun17
-euro04bn
-euro26bn
-euro21bn
-euro16bn
+euro02bn -euro04bn
-euro14bn
Mortgages Consumer Loans Business Loans
| H12017 HIGHLIGHTS
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
2
C O N T E N T S
01 Η117 HIGHLIGHTS
02 Η117 DEVELOPMENTS
03 ASSET QUALITY
04 LIQUIDITY
05 APPENDIX
01
3
Η 1 1 7 H I G H L I G H T S
11 Η117 AT A GLANCE
12 KEY FIGURES
13 SELECTED RATIOS
14 OPERATING PERFORMANCE
15 LIQUIDITY
16 NPL NPE DEVELOPMENT
17 COVERAGE RATIOS
18 NPL NPE OPERATIONAL TARGETS
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
110 CAPITAL
111 GREEK MACRO UPDATE
Note as of Q12017 the operations of two domestic subsidiaries namely Olympic SA (Avis Greece) andImithea SA (HDunant hospital) were recorded as discontinued On top as of Q22017 the Bankrsquosoperations in Serbia (Piraeus Bank Beograd and the local leasing subsidiary) have been also classifiedas discontinued All PampL figures mentioned for 2016 and H12017 have been restated accordingly
4
11 H12017 AT A GLANCE
PampL
bull H1 result attr to SHs from continued ops at break-even Q2 at +euro7mn
bull Net revenues at euro1131mn in H1 +3 yoy
bull Operating costs at euro582mn in H1 -5 yoy
bull Cost to income ratio for H1 at 51 from 56 a year ago
bull Pre provision income at euro549mn in H1 +14 yoy
NPLs|NPEsbull NPL stock down to euro23bn in June -euro29bn yoy
bull NPL formation back in negative territory (-euro329mn) in Q2
bull NPE operational target attained for 3rd quarter in a row -euro2bn yoy
Liquidity
bull Deposits in Greece +euro02bn in Q2 reversing the downward trend of Q1
bull +euro03bn in Q3 till mid-August LDR at 113 down from 116 in Q1
bull Eurosystem reliance at euro158bn -euro5bn ytd ELA at euro85bn in late August
bull ΕFSF|ESM holdings at euro85bn in June down euro47bn ytd
Re-sizing
bull Disposal of Avis Hellas [SPA initiatedin the process of finalizing legal documentation]
bull Disposal of Hellenic Seaways stake [SPA signed]
bull Classification of Serbian operations as discontinued
bull Greek footprint at 639 units -39 yoy FTEs at 13928 -1030 respectively
| H12017 HIGHLIGHTS
Operating profitability improving
NPL amp ΝPE stock down for 7th consecutive quarter in Q2
Deposit outflows have eased since early Mar17
Making progress against restructuring plan commitments
5
12 KEY FIGURES01
Group euro bn|mn Greece Intrsquol Jun17 Jun16 yoy
Total Assets 686 53 739 847 -13
Gross Loans 589 31 620 662 -6
Net Loans 440 24 464 489 -5
Loan Loss Reserves 149 08 157 173 -9
Customer Deposits 382 27 409 388 5
Eurosystem Funding - - 158 268 -41
Equity - - 97 99 -2
NII amp NFI 956 80 1036 1047 -1
Net Revenues 1048 83 1131 1093 3
Operating Costs 514 68 582 610 -5
Pre Provision Income 534 15 549 484 14
Impairment on Loans 504 14 518 492 5
Net Result attr to SHs 2 (2) 0 (13) -
Branches () 639 230 869 939 -7
Employees () 13928 3160 17088 18525 -8
+euro21bn inflows of customer deposits yoy
euro110bn reduction of Eurosystem funding yoy
flattish sum of NII amp NFI yoy both Group amp Greece
euro549mn PPI +14 yoy +17 in Greece
euro7mn Group Q2 result euro14mn in Greece
breakeven Group Q2 bottom line euro2mn in Greece
-7 footprint optimization yoy
-8 headcount reduction yoy
| H12017 HIGHLIGHTS
6
13 SELECTED RATIOS01
371 NPL ratio -210ppts yoy
682 NPL coverage 685 in Greece
523 NPE ratio with 45 cash coverage
271bps NIM with NFI over assets at 50bps
51 Cost to income in Q2 49 in Greece
169 CET-1 with 165 fully loaded CET-1 ratio
Group Greece Intrsquol Jun17 Jun16
Liquidity
Loan Deposits 115 87 113 126
Eurosystem Assets - - 25 40
Profitability
NIM 272 261 271 269
NFI Assets 050 059 050 046
Cost Income 49 82 51 55
Cost of Risk ( of net loans) 23 12 22 20
Capital
CET-1 (phased-in) - - 169 168
CET-1 (fully loaded) - - 165 160
Asset Quality
gt90dpd ratio 370 382 371 392
gt90dpd coverage ratio 685 631 682 668
NPE ratio 525 486 523 521
NPE coverage 449 457 450 470
Note ratios over assets exclude EFSF|ESM bonds and discontinued operations
| H12017 HIGHLIGHTS
7
14 OPERATING PERFORMANCE01
euro mn
952 920 1033
257 292
2014 2015 2016 Q117 Q217
CoR
PPI
-3718-3487
-1015
-259 -259
Operating Jaws
bps on net loans 2014 2015 2016 Q117 Q217
PPI 172 178 208 218 252
CoR 672 673 204 220 223
jaws -500 -495 +4 -2 +29
Group euromn Q217 Q117 qoq H117 yoy
NII 436 437 0 873 -2
NFI 82 81 2 162 7
Other 65 30 gt100 95 -23
Revenues 584 547 7 1131 -3
OpEx (292) (290) 1 (582) -5
PPI 292 257 13 549 19
Loan charge (259) (259) 0 (518) 5
Other charges (18) (11) - (30) -
Net result 7 (7) - 0 -
H117 PPI +14 yoy Bottom Line at Breakeven
Notes (a) recurring PampL data ie excluding one-off items ratios over assets excl ΕFSF|ESM bonds(b) PampL for 2016 excl extraordinary financial gain of euro77mn from the sale of Visa Europe stake
| H12017 HIGHLIGHTS
Note data exclude Serbia for Q1 and Q22017
8
15 LIQUIDITY01
ELA down by euro07bn qoq in Q2 at euro103bn vs 2015 peak of euro22bn
1
2 Eurosystem funding decreased by euro51bn in H1
Interbank repos at euro52bn in Q2 incl euro06bn with non-ECB eligible
collateral
Domestic Deposits (eurobn)
Eurosystem Funding (eurobn)
3
4
5
Positive deposit movement in Q2 in Greece
Zero reliance of L3723 as of April 2016
-29
209
373327
-23-34
-55
141 -31+04
158
-08
Dec14 Jun15 Dec15Δ Q116Δ Q216Δ Q316Δ Q416Dec16Δ Q117Δ Q217 Jun17 Δ Jul17
351 361
-10
+04 +09 +29
495
393
-13
+02 382 +03
Dec14 Jun15 Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217 Jun17 Δ Jul17
Q317
- deposit increase qtd gteuro03bn till mid August
- ELA use has dropped to euro85bn [late August]
ΕLA from euro103bn in June at euro85bn in late August
| H12017 HIGHLIGHTS
6 Continued participation to ESM bond exchange
52 52
279269
264259
253
244241
230
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
382
369 369 368 367 362355 349
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
4037
01
9
16 NPL NPE DEVELOPMENT
1
2
NPL stock marked a drop of euro11bn qoq and euro49bn from Sep15peak
Q217 NPL formation at -euro04bn back on track
Q217 write-offs at euro07bn
SSM NPL operational target attained for Q217 (-euro12bn)
NPΕ reduction of euro20bn in the last 12 months and euro33bn fromSep15 peak
Q217 ΝPE formation marginally negative (-euro005bn)
SSM NPE operational target attained for 3rd quarter in a row
NPL Development amp Ratio (eurobn|)
NPE Development amp Ratio (eurobn|)
-euro49bn
-euro33bn
| H12017 HIGHLIGHTS
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
10
17 COVERAGE RATIOS01
NPL coverage including tangible collateral at 110
Group NPL coverage remained flattish qoq to 682 (+23bps qoq) while domestic slightly increased to 685 (+36bps qoq)
74
40
76 6875
39
7768
Business Mortgages Consumer Total
Mar17
Jun17
business NPLs comprise 68
of total
Group NPE coverage at 45 while including tangible collateral it is 94
1
2
3
NPL Coverage ()
48
29
65
4647
28
64
45
Business Mortgages Consumer Total
Mar17
Jun17
NPE Coverage ()
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
| H12017 HIGHLIGHTS
Jun17Provision coverage
Collateral coverage
Total
NPL 68 41 110
NPE 45 49 94
01
11
18 NPL NPE OPERATIONAL TARGETS
bull Piraeus aims at reducing parent stock of NPEs by 38 from Jun17
(euro326bn) to Dec19 (euro203bn)
bull NPLs at parent level are also targeted to be reduced by 53 from
Jun17 (euro217bn) to Dec19 (euro102bn)
bull The reduction until 2019 will be driven by
restructurings collections liquidations write-offs selected sales
Operational Targets Submitted to SSM | Parent Data
2016 2017 2019
in eurobn June September December March June December
actual target actual target actual target αctual target αctual target
NPLsgt90dpd 244 239 239 233 232 223 230 211 217 102
NPEs 342 344 341 343 338 339 333 329 326 203
218267
223 203
102
109-59
-44 -20101
326
203
Jun17 Write-Offs RestructuringsCollectionsLiquidations
SelectedSales
2019
NPEs
NPLs
| H12017 HIGHLIGHTS
Overall Operational target attained Quarterly target attainedNotes
3834
Jun16 Jun17
4645
Jun16 Jun17
244
217
Jun16 Jun17
01
12
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro01bn
3329
Jun16 Jun17
165
144
Jun16 Jun17
342326
Jun16 Jun17
6264
Jun16 Jun17
242228
Jun16 Jun17
-euro04bn
-euro26bn
-euro21bn
-euro16bn
+euro02bn -euro04bn
-euro14bn
Mortgages Consumer Loans Business Loans
| H12017 HIGHLIGHTS
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
01
3
Η 1 1 7 H I G H L I G H T S
11 Η117 AT A GLANCE
12 KEY FIGURES
13 SELECTED RATIOS
14 OPERATING PERFORMANCE
15 LIQUIDITY
16 NPL NPE DEVELOPMENT
17 COVERAGE RATIOS
18 NPL NPE OPERATIONAL TARGETS
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
110 CAPITAL
111 GREEK MACRO UPDATE
Note as of Q12017 the operations of two domestic subsidiaries namely Olympic SA (Avis Greece) andImithea SA (HDunant hospital) were recorded as discontinued On top as of Q22017 the Bankrsquosoperations in Serbia (Piraeus Bank Beograd and the local leasing subsidiary) have been also classifiedas discontinued All PampL figures mentioned for 2016 and H12017 have been restated accordingly
4
11 H12017 AT A GLANCE
PampL
bull H1 result attr to SHs from continued ops at break-even Q2 at +euro7mn
bull Net revenues at euro1131mn in H1 +3 yoy
bull Operating costs at euro582mn in H1 -5 yoy
bull Cost to income ratio for H1 at 51 from 56 a year ago
bull Pre provision income at euro549mn in H1 +14 yoy
NPLs|NPEsbull NPL stock down to euro23bn in June -euro29bn yoy
bull NPL formation back in negative territory (-euro329mn) in Q2
bull NPE operational target attained for 3rd quarter in a row -euro2bn yoy
Liquidity
bull Deposits in Greece +euro02bn in Q2 reversing the downward trend of Q1
bull +euro03bn in Q3 till mid-August LDR at 113 down from 116 in Q1
bull Eurosystem reliance at euro158bn -euro5bn ytd ELA at euro85bn in late August
bull ΕFSF|ESM holdings at euro85bn in June down euro47bn ytd
Re-sizing
bull Disposal of Avis Hellas [SPA initiatedin the process of finalizing legal documentation]
bull Disposal of Hellenic Seaways stake [SPA signed]
bull Classification of Serbian operations as discontinued
bull Greek footprint at 639 units -39 yoy FTEs at 13928 -1030 respectively
| H12017 HIGHLIGHTS
Operating profitability improving
NPL amp ΝPE stock down for 7th consecutive quarter in Q2
Deposit outflows have eased since early Mar17
Making progress against restructuring plan commitments
5
12 KEY FIGURES01
Group euro bn|mn Greece Intrsquol Jun17 Jun16 yoy
Total Assets 686 53 739 847 -13
Gross Loans 589 31 620 662 -6
Net Loans 440 24 464 489 -5
Loan Loss Reserves 149 08 157 173 -9
Customer Deposits 382 27 409 388 5
Eurosystem Funding - - 158 268 -41
Equity - - 97 99 -2
NII amp NFI 956 80 1036 1047 -1
Net Revenues 1048 83 1131 1093 3
Operating Costs 514 68 582 610 -5
Pre Provision Income 534 15 549 484 14
Impairment on Loans 504 14 518 492 5
Net Result attr to SHs 2 (2) 0 (13) -
Branches () 639 230 869 939 -7
Employees () 13928 3160 17088 18525 -8
+euro21bn inflows of customer deposits yoy
euro110bn reduction of Eurosystem funding yoy
flattish sum of NII amp NFI yoy both Group amp Greece
euro549mn PPI +14 yoy +17 in Greece
euro7mn Group Q2 result euro14mn in Greece
breakeven Group Q2 bottom line euro2mn in Greece
-7 footprint optimization yoy
-8 headcount reduction yoy
| H12017 HIGHLIGHTS
6
13 SELECTED RATIOS01
371 NPL ratio -210ppts yoy
682 NPL coverage 685 in Greece
523 NPE ratio with 45 cash coverage
271bps NIM with NFI over assets at 50bps
51 Cost to income in Q2 49 in Greece
169 CET-1 with 165 fully loaded CET-1 ratio
Group Greece Intrsquol Jun17 Jun16
Liquidity
Loan Deposits 115 87 113 126
Eurosystem Assets - - 25 40
Profitability
NIM 272 261 271 269
NFI Assets 050 059 050 046
Cost Income 49 82 51 55
Cost of Risk ( of net loans) 23 12 22 20
Capital
CET-1 (phased-in) - - 169 168
CET-1 (fully loaded) - - 165 160
Asset Quality
gt90dpd ratio 370 382 371 392
gt90dpd coverage ratio 685 631 682 668
NPE ratio 525 486 523 521
NPE coverage 449 457 450 470
Note ratios over assets exclude EFSF|ESM bonds and discontinued operations
| H12017 HIGHLIGHTS
7
14 OPERATING PERFORMANCE01
euro mn
952 920 1033
257 292
2014 2015 2016 Q117 Q217
CoR
PPI
-3718-3487
-1015
-259 -259
Operating Jaws
bps on net loans 2014 2015 2016 Q117 Q217
PPI 172 178 208 218 252
CoR 672 673 204 220 223
jaws -500 -495 +4 -2 +29
Group euromn Q217 Q117 qoq H117 yoy
NII 436 437 0 873 -2
NFI 82 81 2 162 7
Other 65 30 gt100 95 -23
Revenues 584 547 7 1131 -3
OpEx (292) (290) 1 (582) -5
PPI 292 257 13 549 19
Loan charge (259) (259) 0 (518) 5
Other charges (18) (11) - (30) -
Net result 7 (7) - 0 -
H117 PPI +14 yoy Bottom Line at Breakeven
Notes (a) recurring PampL data ie excluding one-off items ratios over assets excl ΕFSF|ESM bonds(b) PampL for 2016 excl extraordinary financial gain of euro77mn from the sale of Visa Europe stake
| H12017 HIGHLIGHTS
Note data exclude Serbia for Q1 and Q22017
8
15 LIQUIDITY01
ELA down by euro07bn qoq in Q2 at euro103bn vs 2015 peak of euro22bn
1
2 Eurosystem funding decreased by euro51bn in H1
Interbank repos at euro52bn in Q2 incl euro06bn with non-ECB eligible
collateral
Domestic Deposits (eurobn)
Eurosystem Funding (eurobn)
3
4
5
Positive deposit movement in Q2 in Greece
Zero reliance of L3723 as of April 2016
-29
209
373327
-23-34
-55
141 -31+04
158
-08
Dec14 Jun15 Dec15Δ Q116Δ Q216Δ Q316Δ Q416Dec16Δ Q117Δ Q217 Jun17 Δ Jul17
351 361
-10
+04 +09 +29
495
393
-13
+02 382 +03
Dec14 Jun15 Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217 Jun17 Δ Jul17
Q317
- deposit increase qtd gteuro03bn till mid August
- ELA use has dropped to euro85bn [late August]
ΕLA from euro103bn in June at euro85bn in late August
| H12017 HIGHLIGHTS
6 Continued participation to ESM bond exchange
52 52
279269
264259
253
244241
230
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
382
369 369 368 367 362355 349
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
4037
01
9
16 NPL NPE DEVELOPMENT
1
2
NPL stock marked a drop of euro11bn qoq and euro49bn from Sep15peak
Q217 NPL formation at -euro04bn back on track
Q217 write-offs at euro07bn
SSM NPL operational target attained for Q217 (-euro12bn)
NPΕ reduction of euro20bn in the last 12 months and euro33bn fromSep15 peak
Q217 ΝPE formation marginally negative (-euro005bn)
SSM NPE operational target attained for 3rd quarter in a row
NPL Development amp Ratio (eurobn|)
NPE Development amp Ratio (eurobn|)
-euro49bn
-euro33bn
| H12017 HIGHLIGHTS
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
10
17 COVERAGE RATIOS01
NPL coverage including tangible collateral at 110
Group NPL coverage remained flattish qoq to 682 (+23bps qoq) while domestic slightly increased to 685 (+36bps qoq)
74
40
76 6875
39
7768
Business Mortgages Consumer Total
Mar17
Jun17
business NPLs comprise 68
of total
Group NPE coverage at 45 while including tangible collateral it is 94
1
2
3
NPL Coverage ()
48
29
65
4647
28
64
45
Business Mortgages Consumer Total
Mar17
Jun17
NPE Coverage ()
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
| H12017 HIGHLIGHTS
Jun17Provision coverage
Collateral coverage
Total
NPL 68 41 110
NPE 45 49 94
01
11
18 NPL NPE OPERATIONAL TARGETS
bull Piraeus aims at reducing parent stock of NPEs by 38 from Jun17
(euro326bn) to Dec19 (euro203bn)
bull NPLs at parent level are also targeted to be reduced by 53 from
Jun17 (euro217bn) to Dec19 (euro102bn)
bull The reduction until 2019 will be driven by
restructurings collections liquidations write-offs selected sales
Operational Targets Submitted to SSM | Parent Data
2016 2017 2019
in eurobn June September December March June December
actual target actual target actual target αctual target αctual target
NPLsgt90dpd 244 239 239 233 232 223 230 211 217 102
NPEs 342 344 341 343 338 339 333 329 326 203
218267
223 203
102
109-59
-44 -20101
326
203
Jun17 Write-Offs RestructuringsCollectionsLiquidations
SelectedSales
2019
NPEs
NPLs
| H12017 HIGHLIGHTS
Overall Operational target attained Quarterly target attainedNotes
3834
Jun16 Jun17
4645
Jun16 Jun17
244
217
Jun16 Jun17
01
12
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro01bn
3329
Jun16 Jun17
165
144
Jun16 Jun17
342326
Jun16 Jun17
6264
Jun16 Jun17
242228
Jun16 Jun17
-euro04bn
-euro26bn
-euro21bn
-euro16bn
+euro02bn -euro04bn
-euro14bn
Mortgages Consumer Loans Business Loans
| H12017 HIGHLIGHTS
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
4
11 H12017 AT A GLANCE
PampL
bull H1 result attr to SHs from continued ops at break-even Q2 at +euro7mn
bull Net revenues at euro1131mn in H1 +3 yoy
bull Operating costs at euro582mn in H1 -5 yoy
bull Cost to income ratio for H1 at 51 from 56 a year ago
bull Pre provision income at euro549mn in H1 +14 yoy
NPLs|NPEsbull NPL stock down to euro23bn in June -euro29bn yoy
bull NPL formation back in negative territory (-euro329mn) in Q2
bull NPE operational target attained for 3rd quarter in a row -euro2bn yoy
Liquidity
bull Deposits in Greece +euro02bn in Q2 reversing the downward trend of Q1
bull +euro03bn in Q3 till mid-August LDR at 113 down from 116 in Q1
bull Eurosystem reliance at euro158bn -euro5bn ytd ELA at euro85bn in late August
bull ΕFSF|ESM holdings at euro85bn in June down euro47bn ytd
Re-sizing
bull Disposal of Avis Hellas [SPA initiatedin the process of finalizing legal documentation]
bull Disposal of Hellenic Seaways stake [SPA signed]
bull Classification of Serbian operations as discontinued
bull Greek footprint at 639 units -39 yoy FTEs at 13928 -1030 respectively
| H12017 HIGHLIGHTS
Operating profitability improving
NPL amp ΝPE stock down for 7th consecutive quarter in Q2
Deposit outflows have eased since early Mar17
Making progress against restructuring plan commitments
5
12 KEY FIGURES01
Group euro bn|mn Greece Intrsquol Jun17 Jun16 yoy
Total Assets 686 53 739 847 -13
Gross Loans 589 31 620 662 -6
Net Loans 440 24 464 489 -5
Loan Loss Reserves 149 08 157 173 -9
Customer Deposits 382 27 409 388 5
Eurosystem Funding - - 158 268 -41
Equity - - 97 99 -2
NII amp NFI 956 80 1036 1047 -1
Net Revenues 1048 83 1131 1093 3
Operating Costs 514 68 582 610 -5
Pre Provision Income 534 15 549 484 14
Impairment on Loans 504 14 518 492 5
Net Result attr to SHs 2 (2) 0 (13) -
Branches () 639 230 869 939 -7
Employees () 13928 3160 17088 18525 -8
+euro21bn inflows of customer deposits yoy
euro110bn reduction of Eurosystem funding yoy
flattish sum of NII amp NFI yoy both Group amp Greece
euro549mn PPI +14 yoy +17 in Greece
euro7mn Group Q2 result euro14mn in Greece
breakeven Group Q2 bottom line euro2mn in Greece
-7 footprint optimization yoy
-8 headcount reduction yoy
| H12017 HIGHLIGHTS
6
13 SELECTED RATIOS01
371 NPL ratio -210ppts yoy
682 NPL coverage 685 in Greece
523 NPE ratio with 45 cash coverage
271bps NIM with NFI over assets at 50bps
51 Cost to income in Q2 49 in Greece
169 CET-1 with 165 fully loaded CET-1 ratio
Group Greece Intrsquol Jun17 Jun16
Liquidity
Loan Deposits 115 87 113 126
Eurosystem Assets - - 25 40
Profitability
NIM 272 261 271 269
NFI Assets 050 059 050 046
Cost Income 49 82 51 55
Cost of Risk ( of net loans) 23 12 22 20
Capital
CET-1 (phased-in) - - 169 168
CET-1 (fully loaded) - - 165 160
Asset Quality
gt90dpd ratio 370 382 371 392
gt90dpd coverage ratio 685 631 682 668
NPE ratio 525 486 523 521
NPE coverage 449 457 450 470
Note ratios over assets exclude EFSF|ESM bonds and discontinued operations
| H12017 HIGHLIGHTS
7
14 OPERATING PERFORMANCE01
euro mn
952 920 1033
257 292
2014 2015 2016 Q117 Q217
CoR
PPI
-3718-3487
-1015
-259 -259
Operating Jaws
bps on net loans 2014 2015 2016 Q117 Q217
PPI 172 178 208 218 252
CoR 672 673 204 220 223
jaws -500 -495 +4 -2 +29
Group euromn Q217 Q117 qoq H117 yoy
NII 436 437 0 873 -2
NFI 82 81 2 162 7
Other 65 30 gt100 95 -23
Revenues 584 547 7 1131 -3
OpEx (292) (290) 1 (582) -5
PPI 292 257 13 549 19
Loan charge (259) (259) 0 (518) 5
Other charges (18) (11) - (30) -
Net result 7 (7) - 0 -
H117 PPI +14 yoy Bottom Line at Breakeven
Notes (a) recurring PampL data ie excluding one-off items ratios over assets excl ΕFSF|ESM bonds(b) PampL for 2016 excl extraordinary financial gain of euro77mn from the sale of Visa Europe stake
| H12017 HIGHLIGHTS
Note data exclude Serbia for Q1 and Q22017
8
15 LIQUIDITY01
ELA down by euro07bn qoq in Q2 at euro103bn vs 2015 peak of euro22bn
1
2 Eurosystem funding decreased by euro51bn in H1
Interbank repos at euro52bn in Q2 incl euro06bn with non-ECB eligible
collateral
Domestic Deposits (eurobn)
Eurosystem Funding (eurobn)
3
4
5
Positive deposit movement in Q2 in Greece
Zero reliance of L3723 as of April 2016
-29
209
373327
-23-34
-55
141 -31+04
158
-08
Dec14 Jun15 Dec15Δ Q116Δ Q216Δ Q316Δ Q416Dec16Δ Q117Δ Q217 Jun17 Δ Jul17
351 361
-10
+04 +09 +29
495
393
-13
+02 382 +03
Dec14 Jun15 Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217 Jun17 Δ Jul17
Q317
- deposit increase qtd gteuro03bn till mid August
- ELA use has dropped to euro85bn [late August]
ΕLA from euro103bn in June at euro85bn in late August
| H12017 HIGHLIGHTS
6 Continued participation to ESM bond exchange
52 52
279269
264259
253
244241
230
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
382
369 369 368 367 362355 349
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
4037
01
9
16 NPL NPE DEVELOPMENT
1
2
NPL stock marked a drop of euro11bn qoq and euro49bn from Sep15peak
Q217 NPL formation at -euro04bn back on track
Q217 write-offs at euro07bn
SSM NPL operational target attained for Q217 (-euro12bn)
NPΕ reduction of euro20bn in the last 12 months and euro33bn fromSep15 peak
Q217 ΝPE formation marginally negative (-euro005bn)
SSM NPE operational target attained for 3rd quarter in a row
NPL Development amp Ratio (eurobn|)
NPE Development amp Ratio (eurobn|)
-euro49bn
-euro33bn
| H12017 HIGHLIGHTS
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
10
17 COVERAGE RATIOS01
NPL coverage including tangible collateral at 110
Group NPL coverage remained flattish qoq to 682 (+23bps qoq) while domestic slightly increased to 685 (+36bps qoq)
74
40
76 6875
39
7768
Business Mortgages Consumer Total
Mar17
Jun17
business NPLs comprise 68
of total
Group NPE coverage at 45 while including tangible collateral it is 94
1
2
3
NPL Coverage ()
48
29
65
4647
28
64
45
Business Mortgages Consumer Total
Mar17
Jun17
NPE Coverage ()
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
| H12017 HIGHLIGHTS
Jun17Provision coverage
Collateral coverage
Total
NPL 68 41 110
NPE 45 49 94
01
11
18 NPL NPE OPERATIONAL TARGETS
bull Piraeus aims at reducing parent stock of NPEs by 38 from Jun17
(euro326bn) to Dec19 (euro203bn)
bull NPLs at parent level are also targeted to be reduced by 53 from
Jun17 (euro217bn) to Dec19 (euro102bn)
bull The reduction until 2019 will be driven by
restructurings collections liquidations write-offs selected sales
Operational Targets Submitted to SSM | Parent Data
2016 2017 2019
in eurobn June September December March June December
actual target actual target actual target αctual target αctual target
NPLsgt90dpd 244 239 239 233 232 223 230 211 217 102
NPEs 342 344 341 343 338 339 333 329 326 203
218267
223 203
102
109-59
-44 -20101
326
203
Jun17 Write-Offs RestructuringsCollectionsLiquidations
SelectedSales
2019
NPEs
NPLs
| H12017 HIGHLIGHTS
Overall Operational target attained Quarterly target attainedNotes
3834
Jun16 Jun17
4645
Jun16 Jun17
244
217
Jun16 Jun17
01
12
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro01bn
3329
Jun16 Jun17
165
144
Jun16 Jun17
342326
Jun16 Jun17
6264
Jun16 Jun17
242228
Jun16 Jun17
-euro04bn
-euro26bn
-euro21bn
-euro16bn
+euro02bn -euro04bn
-euro14bn
Mortgages Consumer Loans Business Loans
| H12017 HIGHLIGHTS
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
5
12 KEY FIGURES01
Group euro bn|mn Greece Intrsquol Jun17 Jun16 yoy
Total Assets 686 53 739 847 -13
Gross Loans 589 31 620 662 -6
Net Loans 440 24 464 489 -5
Loan Loss Reserves 149 08 157 173 -9
Customer Deposits 382 27 409 388 5
Eurosystem Funding - - 158 268 -41
Equity - - 97 99 -2
NII amp NFI 956 80 1036 1047 -1
Net Revenues 1048 83 1131 1093 3
Operating Costs 514 68 582 610 -5
Pre Provision Income 534 15 549 484 14
Impairment on Loans 504 14 518 492 5
Net Result attr to SHs 2 (2) 0 (13) -
Branches () 639 230 869 939 -7
Employees () 13928 3160 17088 18525 -8
+euro21bn inflows of customer deposits yoy
euro110bn reduction of Eurosystem funding yoy
flattish sum of NII amp NFI yoy both Group amp Greece
euro549mn PPI +14 yoy +17 in Greece
euro7mn Group Q2 result euro14mn in Greece
breakeven Group Q2 bottom line euro2mn in Greece
-7 footprint optimization yoy
-8 headcount reduction yoy
| H12017 HIGHLIGHTS
6
13 SELECTED RATIOS01
371 NPL ratio -210ppts yoy
682 NPL coverage 685 in Greece
523 NPE ratio with 45 cash coverage
271bps NIM with NFI over assets at 50bps
51 Cost to income in Q2 49 in Greece
169 CET-1 with 165 fully loaded CET-1 ratio
Group Greece Intrsquol Jun17 Jun16
Liquidity
Loan Deposits 115 87 113 126
Eurosystem Assets - - 25 40
Profitability
NIM 272 261 271 269
NFI Assets 050 059 050 046
Cost Income 49 82 51 55
Cost of Risk ( of net loans) 23 12 22 20
Capital
CET-1 (phased-in) - - 169 168
CET-1 (fully loaded) - - 165 160
Asset Quality
gt90dpd ratio 370 382 371 392
gt90dpd coverage ratio 685 631 682 668
NPE ratio 525 486 523 521
NPE coverage 449 457 450 470
Note ratios over assets exclude EFSF|ESM bonds and discontinued operations
| H12017 HIGHLIGHTS
7
14 OPERATING PERFORMANCE01
euro mn
952 920 1033
257 292
2014 2015 2016 Q117 Q217
CoR
PPI
-3718-3487
-1015
-259 -259
Operating Jaws
bps on net loans 2014 2015 2016 Q117 Q217
PPI 172 178 208 218 252
CoR 672 673 204 220 223
jaws -500 -495 +4 -2 +29
Group euromn Q217 Q117 qoq H117 yoy
NII 436 437 0 873 -2
NFI 82 81 2 162 7
Other 65 30 gt100 95 -23
Revenues 584 547 7 1131 -3
OpEx (292) (290) 1 (582) -5
PPI 292 257 13 549 19
Loan charge (259) (259) 0 (518) 5
Other charges (18) (11) - (30) -
Net result 7 (7) - 0 -
H117 PPI +14 yoy Bottom Line at Breakeven
Notes (a) recurring PampL data ie excluding one-off items ratios over assets excl ΕFSF|ESM bonds(b) PampL for 2016 excl extraordinary financial gain of euro77mn from the sale of Visa Europe stake
| H12017 HIGHLIGHTS
Note data exclude Serbia for Q1 and Q22017
8
15 LIQUIDITY01
ELA down by euro07bn qoq in Q2 at euro103bn vs 2015 peak of euro22bn
1
2 Eurosystem funding decreased by euro51bn in H1
Interbank repos at euro52bn in Q2 incl euro06bn with non-ECB eligible
collateral
Domestic Deposits (eurobn)
Eurosystem Funding (eurobn)
3
4
5
Positive deposit movement in Q2 in Greece
Zero reliance of L3723 as of April 2016
-29
209
373327
-23-34
-55
141 -31+04
158
-08
Dec14 Jun15 Dec15Δ Q116Δ Q216Δ Q316Δ Q416Dec16Δ Q117Δ Q217 Jun17 Δ Jul17
351 361
-10
+04 +09 +29
495
393
-13
+02 382 +03
Dec14 Jun15 Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217 Jun17 Δ Jul17
Q317
- deposit increase qtd gteuro03bn till mid August
- ELA use has dropped to euro85bn [late August]
ΕLA from euro103bn in June at euro85bn in late August
| H12017 HIGHLIGHTS
6 Continued participation to ESM bond exchange
52 52
279269
264259
253
244241
230
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
382
369 369 368 367 362355 349
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
4037
01
9
16 NPL NPE DEVELOPMENT
1
2
NPL stock marked a drop of euro11bn qoq and euro49bn from Sep15peak
Q217 NPL formation at -euro04bn back on track
Q217 write-offs at euro07bn
SSM NPL operational target attained for Q217 (-euro12bn)
NPΕ reduction of euro20bn in the last 12 months and euro33bn fromSep15 peak
Q217 ΝPE formation marginally negative (-euro005bn)
SSM NPE operational target attained for 3rd quarter in a row
NPL Development amp Ratio (eurobn|)
NPE Development amp Ratio (eurobn|)
-euro49bn
-euro33bn
| H12017 HIGHLIGHTS
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
10
17 COVERAGE RATIOS01
NPL coverage including tangible collateral at 110
Group NPL coverage remained flattish qoq to 682 (+23bps qoq) while domestic slightly increased to 685 (+36bps qoq)
74
40
76 6875
39
7768
Business Mortgages Consumer Total
Mar17
Jun17
business NPLs comprise 68
of total
Group NPE coverage at 45 while including tangible collateral it is 94
1
2
3
NPL Coverage ()
48
29
65
4647
28
64
45
Business Mortgages Consumer Total
Mar17
Jun17
NPE Coverage ()
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
| H12017 HIGHLIGHTS
Jun17Provision coverage
Collateral coverage
Total
NPL 68 41 110
NPE 45 49 94
01
11
18 NPL NPE OPERATIONAL TARGETS
bull Piraeus aims at reducing parent stock of NPEs by 38 from Jun17
(euro326bn) to Dec19 (euro203bn)
bull NPLs at parent level are also targeted to be reduced by 53 from
Jun17 (euro217bn) to Dec19 (euro102bn)
bull The reduction until 2019 will be driven by
restructurings collections liquidations write-offs selected sales
Operational Targets Submitted to SSM | Parent Data
2016 2017 2019
in eurobn June September December March June December
actual target actual target actual target αctual target αctual target
NPLsgt90dpd 244 239 239 233 232 223 230 211 217 102
NPEs 342 344 341 343 338 339 333 329 326 203
218267
223 203
102
109-59
-44 -20101
326
203
Jun17 Write-Offs RestructuringsCollectionsLiquidations
SelectedSales
2019
NPEs
NPLs
| H12017 HIGHLIGHTS
Overall Operational target attained Quarterly target attainedNotes
3834
Jun16 Jun17
4645
Jun16 Jun17
244
217
Jun16 Jun17
01
12
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro01bn
3329
Jun16 Jun17
165
144
Jun16 Jun17
342326
Jun16 Jun17
6264
Jun16 Jun17
242228
Jun16 Jun17
-euro04bn
-euro26bn
-euro21bn
-euro16bn
+euro02bn -euro04bn
-euro14bn
Mortgages Consumer Loans Business Loans
| H12017 HIGHLIGHTS
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
6
13 SELECTED RATIOS01
371 NPL ratio -210ppts yoy
682 NPL coverage 685 in Greece
523 NPE ratio with 45 cash coverage
271bps NIM with NFI over assets at 50bps
51 Cost to income in Q2 49 in Greece
169 CET-1 with 165 fully loaded CET-1 ratio
Group Greece Intrsquol Jun17 Jun16
Liquidity
Loan Deposits 115 87 113 126
Eurosystem Assets - - 25 40
Profitability
NIM 272 261 271 269
NFI Assets 050 059 050 046
Cost Income 49 82 51 55
Cost of Risk ( of net loans) 23 12 22 20
Capital
CET-1 (phased-in) - - 169 168
CET-1 (fully loaded) - - 165 160
Asset Quality
gt90dpd ratio 370 382 371 392
gt90dpd coverage ratio 685 631 682 668
NPE ratio 525 486 523 521
NPE coverage 449 457 450 470
Note ratios over assets exclude EFSF|ESM bonds and discontinued operations
| H12017 HIGHLIGHTS
7
14 OPERATING PERFORMANCE01
euro mn
952 920 1033
257 292
2014 2015 2016 Q117 Q217
CoR
PPI
-3718-3487
-1015
-259 -259
Operating Jaws
bps on net loans 2014 2015 2016 Q117 Q217
PPI 172 178 208 218 252
CoR 672 673 204 220 223
jaws -500 -495 +4 -2 +29
Group euromn Q217 Q117 qoq H117 yoy
NII 436 437 0 873 -2
NFI 82 81 2 162 7
Other 65 30 gt100 95 -23
Revenues 584 547 7 1131 -3
OpEx (292) (290) 1 (582) -5
PPI 292 257 13 549 19
Loan charge (259) (259) 0 (518) 5
Other charges (18) (11) - (30) -
Net result 7 (7) - 0 -
H117 PPI +14 yoy Bottom Line at Breakeven
Notes (a) recurring PampL data ie excluding one-off items ratios over assets excl ΕFSF|ESM bonds(b) PampL for 2016 excl extraordinary financial gain of euro77mn from the sale of Visa Europe stake
| H12017 HIGHLIGHTS
Note data exclude Serbia for Q1 and Q22017
8
15 LIQUIDITY01
ELA down by euro07bn qoq in Q2 at euro103bn vs 2015 peak of euro22bn
1
2 Eurosystem funding decreased by euro51bn in H1
Interbank repos at euro52bn in Q2 incl euro06bn with non-ECB eligible
collateral
Domestic Deposits (eurobn)
Eurosystem Funding (eurobn)
3
4
5
Positive deposit movement in Q2 in Greece
Zero reliance of L3723 as of April 2016
-29
209
373327
-23-34
-55
141 -31+04
158
-08
Dec14 Jun15 Dec15Δ Q116Δ Q216Δ Q316Δ Q416Dec16Δ Q117Δ Q217 Jun17 Δ Jul17
351 361
-10
+04 +09 +29
495
393
-13
+02 382 +03
Dec14 Jun15 Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217 Jun17 Δ Jul17
Q317
- deposit increase qtd gteuro03bn till mid August
- ELA use has dropped to euro85bn [late August]
ΕLA from euro103bn in June at euro85bn in late August
| H12017 HIGHLIGHTS
6 Continued participation to ESM bond exchange
52 52
279269
264259
253
244241
230
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
382
369 369 368 367 362355 349
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
4037
01
9
16 NPL NPE DEVELOPMENT
1
2
NPL stock marked a drop of euro11bn qoq and euro49bn from Sep15peak
Q217 NPL formation at -euro04bn back on track
Q217 write-offs at euro07bn
SSM NPL operational target attained for Q217 (-euro12bn)
NPΕ reduction of euro20bn in the last 12 months and euro33bn fromSep15 peak
Q217 ΝPE formation marginally negative (-euro005bn)
SSM NPE operational target attained for 3rd quarter in a row
NPL Development amp Ratio (eurobn|)
NPE Development amp Ratio (eurobn|)
-euro49bn
-euro33bn
| H12017 HIGHLIGHTS
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
10
17 COVERAGE RATIOS01
NPL coverage including tangible collateral at 110
Group NPL coverage remained flattish qoq to 682 (+23bps qoq) while domestic slightly increased to 685 (+36bps qoq)
74
40
76 6875
39
7768
Business Mortgages Consumer Total
Mar17
Jun17
business NPLs comprise 68
of total
Group NPE coverage at 45 while including tangible collateral it is 94
1
2
3
NPL Coverage ()
48
29
65
4647
28
64
45
Business Mortgages Consumer Total
Mar17
Jun17
NPE Coverage ()
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
| H12017 HIGHLIGHTS
Jun17Provision coverage
Collateral coverage
Total
NPL 68 41 110
NPE 45 49 94
01
11
18 NPL NPE OPERATIONAL TARGETS
bull Piraeus aims at reducing parent stock of NPEs by 38 from Jun17
(euro326bn) to Dec19 (euro203bn)
bull NPLs at parent level are also targeted to be reduced by 53 from
Jun17 (euro217bn) to Dec19 (euro102bn)
bull The reduction until 2019 will be driven by
restructurings collections liquidations write-offs selected sales
Operational Targets Submitted to SSM | Parent Data
2016 2017 2019
in eurobn June September December March June December
actual target actual target actual target αctual target αctual target
NPLsgt90dpd 244 239 239 233 232 223 230 211 217 102
NPEs 342 344 341 343 338 339 333 329 326 203
218267
223 203
102
109-59
-44 -20101
326
203
Jun17 Write-Offs RestructuringsCollectionsLiquidations
SelectedSales
2019
NPEs
NPLs
| H12017 HIGHLIGHTS
Overall Operational target attained Quarterly target attainedNotes
3834
Jun16 Jun17
4645
Jun16 Jun17
244
217
Jun16 Jun17
01
12
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro01bn
3329
Jun16 Jun17
165
144
Jun16 Jun17
342326
Jun16 Jun17
6264
Jun16 Jun17
242228
Jun16 Jun17
-euro04bn
-euro26bn
-euro21bn
-euro16bn
+euro02bn -euro04bn
-euro14bn
Mortgages Consumer Loans Business Loans
| H12017 HIGHLIGHTS
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
7
14 OPERATING PERFORMANCE01
euro mn
952 920 1033
257 292
2014 2015 2016 Q117 Q217
CoR
PPI
-3718-3487
-1015
-259 -259
Operating Jaws
bps on net loans 2014 2015 2016 Q117 Q217
PPI 172 178 208 218 252
CoR 672 673 204 220 223
jaws -500 -495 +4 -2 +29
Group euromn Q217 Q117 qoq H117 yoy
NII 436 437 0 873 -2
NFI 82 81 2 162 7
Other 65 30 gt100 95 -23
Revenues 584 547 7 1131 -3
OpEx (292) (290) 1 (582) -5
PPI 292 257 13 549 19
Loan charge (259) (259) 0 (518) 5
Other charges (18) (11) - (30) -
Net result 7 (7) - 0 -
H117 PPI +14 yoy Bottom Line at Breakeven
Notes (a) recurring PampL data ie excluding one-off items ratios over assets excl ΕFSF|ESM bonds(b) PampL for 2016 excl extraordinary financial gain of euro77mn from the sale of Visa Europe stake
| H12017 HIGHLIGHTS
Note data exclude Serbia for Q1 and Q22017
8
15 LIQUIDITY01
ELA down by euro07bn qoq in Q2 at euro103bn vs 2015 peak of euro22bn
1
2 Eurosystem funding decreased by euro51bn in H1
Interbank repos at euro52bn in Q2 incl euro06bn with non-ECB eligible
collateral
Domestic Deposits (eurobn)
Eurosystem Funding (eurobn)
3
4
5
Positive deposit movement in Q2 in Greece
Zero reliance of L3723 as of April 2016
-29
209
373327
-23-34
-55
141 -31+04
158
-08
Dec14 Jun15 Dec15Δ Q116Δ Q216Δ Q316Δ Q416Dec16Δ Q117Δ Q217 Jun17 Δ Jul17
351 361
-10
+04 +09 +29
495
393
-13
+02 382 +03
Dec14 Jun15 Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217 Jun17 Δ Jul17
Q317
- deposit increase qtd gteuro03bn till mid August
- ELA use has dropped to euro85bn [late August]
ΕLA from euro103bn in June at euro85bn in late August
| H12017 HIGHLIGHTS
6 Continued participation to ESM bond exchange
52 52
279269
264259
253
244241
230
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
382
369 369 368 367 362355 349
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
4037
01
9
16 NPL NPE DEVELOPMENT
1
2
NPL stock marked a drop of euro11bn qoq and euro49bn from Sep15peak
Q217 NPL formation at -euro04bn back on track
Q217 write-offs at euro07bn
SSM NPL operational target attained for Q217 (-euro12bn)
NPΕ reduction of euro20bn in the last 12 months and euro33bn fromSep15 peak
Q217 ΝPE formation marginally negative (-euro005bn)
SSM NPE operational target attained for 3rd quarter in a row
NPL Development amp Ratio (eurobn|)
NPE Development amp Ratio (eurobn|)
-euro49bn
-euro33bn
| H12017 HIGHLIGHTS
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
10
17 COVERAGE RATIOS01
NPL coverage including tangible collateral at 110
Group NPL coverage remained flattish qoq to 682 (+23bps qoq) while domestic slightly increased to 685 (+36bps qoq)
74
40
76 6875
39
7768
Business Mortgages Consumer Total
Mar17
Jun17
business NPLs comprise 68
of total
Group NPE coverage at 45 while including tangible collateral it is 94
1
2
3
NPL Coverage ()
48
29
65
4647
28
64
45
Business Mortgages Consumer Total
Mar17
Jun17
NPE Coverage ()
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
| H12017 HIGHLIGHTS
Jun17Provision coverage
Collateral coverage
Total
NPL 68 41 110
NPE 45 49 94
01
11
18 NPL NPE OPERATIONAL TARGETS
bull Piraeus aims at reducing parent stock of NPEs by 38 from Jun17
(euro326bn) to Dec19 (euro203bn)
bull NPLs at parent level are also targeted to be reduced by 53 from
Jun17 (euro217bn) to Dec19 (euro102bn)
bull The reduction until 2019 will be driven by
restructurings collections liquidations write-offs selected sales
Operational Targets Submitted to SSM | Parent Data
2016 2017 2019
in eurobn June September December March June December
actual target actual target actual target αctual target αctual target
NPLsgt90dpd 244 239 239 233 232 223 230 211 217 102
NPEs 342 344 341 343 338 339 333 329 326 203
218267
223 203
102
109-59
-44 -20101
326
203
Jun17 Write-Offs RestructuringsCollectionsLiquidations
SelectedSales
2019
NPEs
NPLs
| H12017 HIGHLIGHTS
Overall Operational target attained Quarterly target attainedNotes
3834
Jun16 Jun17
4645
Jun16 Jun17
244
217
Jun16 Jun17
01
12
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro01bn
3329
Jun16 Jun17
165
144
Jun16 Jun17
342326
Jun16 Jun17
6264
Jun16 Jun17
242228
Jun16 Jun17
-euro04bn
-euro26bn
-euro21bn
-euro16bn
+euro02bn -euro04bn
-euro14bn
Mortgages Consumer Loans Business Loans
| H12017 HIGHLIGHTS
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
8
15 LIQUIDITY01
ELA down by euro07bn qoq in Q2 at euro103bn vs 2015 peak of euro22bn
1
2 Eurosystem funding decreased by euro51bn in H1
Interbank repos at euro52bn in Q2 incl euro06bn with non-ECB eligible
collateral
Domestic Deposits (eurobn)
Eurosystem Funding (eurobn)
3
4
5
Positive deposit movement in Q2 in Greece
Zero reliance of L3723 as of April 2016
-29
209
373327
-23-34
-55
141 -31+04
158
-08
Dec14 Jun15 Dec15Δ Q116Δ Q216Δ Q316Δ Q416Dec16Δ Q117Δ Q217 Jun17 Δ Jul17
351 361
-10
+04 +09 +29
495
393
-13
+02 382 +03
Dec14 Jun15 Dec15 Δ Q116Δ Q216Δ Q316Δ Q416 Dec16 Δ Q117Δ Q217 Jun17 Δ Jul17
Q317
- deposit increase qtd gteuro03bn till mid August
- ELA use has dropped to euro85bn [late August]
ΕLA from euro103bn in June at euro85bn in late August
| H12017 HIGHLIGHTS
6 Continued participation to ESM bond exchange
52 52
279269
264259
253
244241
230
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
382
369 369 368 367 362355 349
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
4037
01
9
16 NPL NPE DEVELOPMENT
1
2
NPL stock marked a drop of euro11bn qoq and euro49bn from Sep15peak
Q217 NPL formation at -euro04bn back on track
Q217 write-offs at euro07bn
SSM NPL operational target attained for Q217 (-euro12bn)
NPΕ reduction of euro20bn in the last 12 months and euro33bn fromSep15 peak
Q217 ΝPE formation marginally negative (-euro005bn)
SSM NPE operational target attained for 3rd quarter in a row
NPL Development amp Ratio (eurobn|)
NPE Development amp Ratio (eurobn|)
-euro49bn
-euro33bn
| H12017 HIGHLIGHTS
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
10
17 COVERAGE RATIOS01
NPL coverage including tangible collateral at 110
Group NPL coverage remained flattish qoq to 682 (+23bps qoq) while domestic slightly increased to 685 (+36bps qoq)
74
40
76 6875
39
7768
Business Mortgages Consumer Total
Mar17
Jun17
business NPLs comprise 68
of total
Group NPE coverage at 45 while including tangible collateral it is 94
1
2
3
NPL Coverage ()
48
29
65
4647
28
64
45
Business Mortgages Consumer Total
Mar17
Jun17
NPE Coverage ()
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
| H12017 HIGHLIGHTS
Jun17Provision coverage
Collateral coverage
Total
NPL 68 41 110
NPE 45 49 94
01
11
18 NPL NPE OPERATIONAL TARGETS
bull Piraeus aims at reducing parent stock of NPEs by 38 from Jun17
(euro326bn) to Dec19 (euro203bn)
bull NPLs at parent level are also targeted to be reduced by 53 from
Jun17 (euro217bn) to Dec19 (euro102bn)
bull The reduction until 2019 will be driven by
restructurings collections liquidations write-offs selected sales
Operational Targets Submitted to SSM | Parent Data
2016 2017 2019
in eurobn June September December March June December
actual target actual target actual target αctual target αctual target
NPLsgt90dpd 244 239 239 233 232 223 230 211 217 102
NPEs 342 344 341 343 338 339 333 329 326 203
218267
223 203
102
109-59
-44 -20101
326
203
Jun17 Write-Offs RestructuringsCollectionsLiquidations
SelectedSales
2019
NPEs
NPLs
| H12017 HIGHLIGHTS
Overall Operational target attained Quarterly target attainedNotes
3834
Jun16 Jun17
4645
Jun16 Jun17
244
217
Jun16 Jun17
01
12
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro01bn
3329
Jun16 Jun17
165
144
Jun16 Jun17
342326
Jun16 Jun17
6264
Jun16 Jun17
242228
Jun16 Jun17
-euro04bn
-euro26bn
-euro21bn
-euro16bn
+euro02bn -euro04bn
-euro14bn
Mortgages Consumer Loans Business Loans
| H12017 HIGHLIGHTS
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
52 52
279269
264259
253
244241
230
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
382
369 369 368 367 362355 349
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
4037
01
9
16 NPL NPE DEVELOPMENT
1
2
NPL stock marked a drop of euro11bn qoq and euro49bn from Sep15peak
Q217 NPL formation at -euro04bn back on track
Q217 write-offs at euro07bn
SSM NPL operational target attained for Q217 (-euro12bn)
NPΕ reduction of euro20bn in the last 12 months and euro33bn fromSep15 peak
Q217 ΝPE formation marginally negative (-euro005bn)
SSM NPE operational target attained for 3rd quarter in a row
NPL Development amp Ratio (eurobn|)
NPE Development amp Ratio (eurobn|)
-euro49bn
-euro33bn
| H12017 HIGHLIGHTS
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
10
17 COVERAGE RATIOS01
NPL coverage including tangible collateral at 110
Group NPL coverage remained flattish qoq to 682 (+23bps qoq) while domestic slightly increased to 685 (+36bps qoq)
74
40
76 6875
39
7768
Business Mortgages Consumer Total
Mar17
Jun17
business NPLs comprise 68
of total
Group NPE coverage at 45 while including tangible collateral it is 94
1
2
3
NPL Coverage ()
48
29
65
4647
28
64
45
Business Mortgages Consumer Total
Mar17
Jun17
NPE Coverage ()
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
| H12017 HIGHLIGHTS
Jun17Provision coverage
Collateral coverage
Total
NPL 68 41 110
NPE 45 49 94
01
11
18 NPL NPE OPERATIONAL TARGETS
bull Piraeus aims at reducing parent stock of NPEs by 38 from Jun17
(euro326bn) to Dec19 (euro203bn)
bull NPLs at parent level are also targeted to be reduced by 53 from
Jun17 (euro217bn) to Dec19 (euro102bn)
bull The reduction until 2019 will be driven by
restructurings collections liquidations write-offs selected sales
Operational Targets Submitted to SSM | Parent Data
2016 2017 2019
in eurobn June September December March June December
actual target actual target actual target αctual target αctual target
NPLsgt90dpd 244 239 239 233 232 223 230 211 217 102
NPEs 342 344 341 343 338 339 333 329 326 203
218267
223 203
102
109-59
-44 -20101
326
203
Jun17 Write-Offs RestructuringsCollectionsLiquidations
SelectedSales
2019
NPEs
NPLs
| H12017 HIGHLIGHTS
Overall Operational target attained Quarterly target attainedNotes
3834
Jun16 Jun17
4645
Jun16 Jun17
244
217
Jun16 Jun17
01
12
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro01bn
3329
Jun16 Jun17
165
144
Jun16 Jun17
342326
Jun16 Jun17
6264
Jun16 Jun17
242228
Jun16 Jun17
-euro04bn
-euro26bn
-euro21bn
-euro16bn
+euro02bn -euro04bn
-euro14bn
Mortgages Consumer Loans Business Loans
| H12017 HIGHLIGHTS
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
10
17 COVERAGE RATIOS01
NPL coverage including tangible collateral at 110
Group NPL coverage remained flattish qoq to 682 (+23bps qoq) while domestic slightly increased to 685 (+36bps qoq)
74
40
76 6875
39
7768
Business Mortgages Consumer Total
Mar17
Jun17
business NPLs comprise 68
of total
Group NPE coverage at 45 while including tangible collateral it is 94
1
2
3
NPL Coverage ()
48
29
65
4647
28
64
45
Business Mortgages Consumer Total
Mar17
Jun17
NPE Coverage ()
Note NPL NPE for Jun17 exclude Grouprsquos operations in Serbia (Piraeus Bank Beograd and its local leasing subsidiary)
| H12017 HIGHLIGHTS
Jun17Provision coverage
Collateral coverage
Total
NPL 68 41 110
NPE 45 49 94
01
11
18 NPL NPE OPERATIONAL TARGETS
bull Piraeus aims at reducing parent stock of NPEs by 38 from Jun17
(euro326bn) to Dec19 (euro203bn)
bull NPLs at parent level are also targeted to be reduced by 53 from
Jun17 (euro217bn) to Dec19 (euro102bn)
bull The reduction until 2019 will be driven by
restructurings collections liquidations write-offs selected sales
Operational Targets Submitted to SSM | Parent Data
2016 2017 2019
in eurobn June September December March June December
actual target actual target actual target αctual target αctual target
NPLsgt90dpd 244 239 239 233 232 223 230 211 217 102
NPEs 342 344 341 343 338 339 333 329 326 203
218267
223 203
102
109-59
-44 -20101
326
203
Jun17 Write-Offs RestructuringsCollectionsLiquidations
SelectedSales
2019
NPEs
NPLs
| H12017 HIGHLIGHTS
Overall Operational target attained Quarterly target attainedNotes
3834
Jun16 Jun17
4645
Jun16 Jun17
244
217
Jun16 Jun17
01
12
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro01bn
3329
Jun16 Jun17
165
144
Jun16 Jun17
342326
Jun16 Jun17
6264
Jun16 Jun17
242228
Jun16 Jun17
-euro04bn
-euro26bn
-euro21bn
-euro16bn
+euro02bn -euro04bn
-euro14bn
Mortgages Consumer Loans Business Loans
| H12017 HIGHLIGHTS
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
01
11
18 NPL NPE OPERATIONAL TARGETS
bull Piraeus aims at reducing parent stock of NPEs by 38 from Jun17
(euro326bn) to Dec19 (euro203bn)
bull NPLs at parent level are also targeted to be reduced by 53 from
Jun17 (euro217bn) to Dec19 (euro102bn)
bull The reduction until 2019 will be driven by
restructurings collections liquidations write-offs selected sales
Operational Targets Submitted to SSM | Parent Data
2016 2017 2019
in eurobn June September December March June December
actual target actual target actual target αctual target αctual target
NPLsgt90dpd 244 239 239 233 232 223 230 211 217 102
NPEs 342 344 341 343 338 339 333 329 326 203
218267
223 203
102
109-59
-44 -20101
326
203
Jun17 Write-Offs RestructuringsCollectionsLiquidations
SelectedSales
2019
NPEs
NPLs
| H12017 HIGHLIGHTS
Overall Operational target attained Quarterly target attainedNotes
3834
Jun16 Jun17
4645
Jun16 Jun17
244
217
Jun16 Jun17
01
12
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro01bn
3329
Jun16 Jun17
165
144
Jun16 Jun17
342326
Jun16 Jun17
6264
Jun16 Jun17
242228
Jun16 Jun17
-euro04bn
-euro26bn
-euro21bn
-euro16bn
+euro02bn -euro04bn
-euro14bn
Mortgages Consumer Loans Business Loans
| H12017 HIGHLIGHTS
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
3834
Jun16 Jun17
4645
Jun16 Jun17
244
217
Jun16 Jun17
01
12
19 NPL NPE SOLO PERFORMANCE PER SEGMENT
NPL Development yoy (eurobn)
NPE Development yoy (eurobn)
-euro01bn
3329
Jun16 Jun17
165
144
Jun16 Jun17
342326
Jun16 Jun17
6264
Jun16 Jun17
242228
Jun16 Jun17
-euro04bn
-euro26bn
-euro21bn
-euro16bn
+euro02bn -euro04bn
-euro14bn
Mortgages Consumer Loans Business Loans
| H12017 HIGHLIGHTS
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
13
110 CAPITAL01
euro bn | Phased-Ιn Fully Loaded
CET-1 Capital 88 86
Total Regulatory Capital 88 86
RWAs 522 522
CET-1 ratio 169 165
Total Capital Ratio 169 165
CET-1 Ratios (Jun17)euromn
CET-1 Capital amp RWAs Evolution in H12017
Leverage ratio at 119
Tangible book value at euro76bn
DTC at euro40bn ow euro13bn from PSI and euro27bn from loan losses
8902
0 -75
2 8829
Mar17CET-1
Q217 resultscont ops
Q217 resultsdiscd ops
Other Jun17CET-1
53122
-363 -511
52248
Mar17RWA
Q217 Serbia amp AVIS Jun17RWA
Note ratios adjusted for AVIS amp Serbia RWA relief
| H12017 HIGHLIGHTS
CET-1 ratios (phased-In amp fully loaded) up on a quarterly basis (01and 02 respectively)
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
01
14
111 GREEK MACRO UPDATE
Reversed Economic Climate Back to the Path Towards Expansion
Sources ELSTAT DG ECFIN Piraeus Bank Economic Research
Real GDP Expected to Stay on a Growth Trajectory
A rebound in economic activity during Q117 and positive
momentum thereafter create significant upside potential to
our 2017-2019 outlook
Post completion of the 2nd Programme Review the business
climate improved with the Economic Sentiment Indicator
rebounding to 982 points close to the peak levels last
recorded in February 2015
Our renewed optimism is based upon the recovery of a
number of economic activity indicators ranging from tourist
arrivals to employment retail sales and industrial production
Going forward the successful implementation of the
outstanding programme reviews and the maintenance of
economic stability and credibility are of paramount importance
so that the Greek economy will be able to capitalize on the
growing positive momentum
Has Economic Activity Recovery Come to Stay
-20
-10
00
10
-025 -015 -005 005 015
leve
l
mom change
downswing expansion
contraction upswing
Jan05
July 17
12
2123
-30
-20
-10
00
10
20
30
Q1
15
Q2
15
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
qoq change
yoy change2017-2019
outlook
| H12017 HIGHLIGHTS
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
02
15
H 1 1 7 D E V E L O P M E N T S
21 ASSETS amp LIABILITIES MIX
22 GROUP PampL HIGHLIGHTS
23 NET INTEREST INCOME TRENDS
24 GROUP BALANCE SHEET
25 DOMESTIC PampL HIGHLIGHTS
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
02
16
21 ASSETS amp LIABILITIES MIX
| H117 DEVELOPMENTS
amounts in eurobn
20
97
160
252
52
55
103
106
21
464
85
33
30
Other
Cash
AssetMix
Total
Securities
EFSF|ESM Bonds
Net Loans
PPE
739
100
23
474
109
3328
23
98
160
250
80
45
110
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
739
FundingMix
Jun17
Total
CashSecurities
EFSF|ESM Bonds
Net Loans
Fixed Assets
Other
766
Mar17
Jun17
Mar17
Total
ECB
ELA
Interbank Repos
Core Deposits
Time Deposits
Total Equity
Other
766
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
17
22 GROUP PampL HIGHLIGHTS02Group Profit amp Loss (euromn)
NFI increased by 2 qoq and 7 yoy from ancillary
business (eg payments money transfers cards
acquiring etc)
Q2 OpEx almost flattish qoq and decreased by 5 yoy
due to successful containment of administrative
expenses and crystallization from 2016 VES benefit
1
2
Q2 net interest income flattish qoq with the
benefit from lower funding costs outpaced by the
impact of asset deleveraging (loans and EFSFESM
portfolio)
Q217 loan impairment at the level of Q117 as
external economic environment conditions
remained challenging
3 Total net revenues for Q2 up by 7 qoq
4
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 436 437 0 873 895 -2
Net Fee Income 82 81 2 162 152 7
Trading Income 28 32 -11 60 115 -48
Other Income 37 (2) - 35 8 gt100
Total Net Revenues 584 547 7 1131 1170 -3
- excl one-off item 584 547 7 1131 1093 3
Employee Costs (143) (142) 1 (286) (297) -4
Administrative Expenses (123) (121) 2 (244) (260) -6
Depreciation amp Other (25) (26) -4 (52) (53) -2
Total Operating Costs (292) (290) 1 (582) (610) -5
Pre Provision Income 292 257 13 549 561 -2
- excl one-off item 292 257 13 549 484 14
Result from Associates (19) (7) - (26) (24) 8
Impairment on Loans (259) (259) 0 (518) (492) 5
Impairment on Other Assets (18) (11) 64 (30) (43) -31
Profit Before Tax (5) (20) 76 (25) 1 -
Tax 10 13 20 23 (15) -
Net SHs Profit from Continuing Ops 7 (7) - 0 (13) -
Discontinued Ops Result (74) (1) - (75) (27) -
1
2
3
5
6
5
4
6 Negatively affected by Serbian operations (bank amp
leasing) and AVIS (-euro74mn)
| H117 DEVELOPMENTS
a reclass of minus euro69mn from the impairment on other assets line to other income line is included on the table vs the financial statements presentation for the like-for-like illustration of PampL components (IFRS statements show higher other income by euro69mn and respectively higher other impairment by an equal amount)
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
02
18
23 NET INTEREST INCOME TRENDS
Slight pressure in domestic portfolio
attributed to loan restructurings
while front book rates remain
elevated vs legacy portfolio
Income stemming mainly from Greek
sovereign exposure (euro22bn at the end
of Q2)
Group Balances (eurobn) and Interest Amounts amp Rates (euromn | )
Domestic deposit cost further
contained in H1
1
2
Lower EFSFESM balances due to
ongoing exchange in the framework
of Short Term measures for Greek
Public Debt relief
ELA use drop offers
significant relief to interest
expense and provides buffer
for additional NII increase
3
4
FY2016 H12017
Average Balance
InterestAmount
Implied Rate
AverageBalance
Interest Amount
ImpliedRate
Fixed Income Securities 177 126 071 136 58 085
ow EFSF bonds 151 34 023 109 6 011
ow other bonds 26 91 345 27 52 383
Net Loans 501 2300 459 480 1065 443
ow in Greece 473 2111 447 455 990 435
Other Assets 168 115 068 161 55 068
Total Assets 847 2541 300 777 1178 303
Assets excl EFSF amp Disc Ops 675 650
Customer Deposits 409 247 060 416 108 052
ow in Greece 379 213 056 388 99 051
Due to Banks 308 247 080 241 83 069
ow ELA 143 222 155 111 85 153
Other Liabilities amp Equity 131 238 182 120 113 188
Total Liabilities 847 732 086 777 304 078
Net interest Income 1809 873
NIM 1 268 271
1 on assets excluding EFSFESM bonds and discontinued operations
5
| H117 DEVELOPMENTS
1
2
3
4
5
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
19
24 GROUP BALANCE SHEET 02Group Balance Sheet (euromn)
Jun17 Mar17 Jun16 qoq yoy
CashBalances with Central Banks 3042 2821 3734 8 -19
Loans amp Advances to Banks 173 159 176 8 -2
Gross Loans 62048 63787 66187 -3 -6
(Loan Loss Reserves) (15685) (16370) (17313) -4 -9
Securities 11828 14113 18577 -16 -36
- ow EFSF ΕSM Bonds 8504 10859 15474 -22 -45
Intangibles amp Goodwill 277 276 268 0 3
Fixed Assets 2088 2307 2563 -9 -19
Deferred Tax Assets 5329 5330 5092 0 5
Other Assets 3852 3698 3752 4 3
Assets of Discontinued Operations 966 527 1692 83 -43
Total Assets 73918 76647 84727 -4 -13
Due to Banks 21149 23680 31842 -11 -34
Deposits 40918 40960 38817 0 5
Debt Securities 67 68 93 -2 -28
Other Liabilities 1584 2041 2468 -22 -36
Liabilities of Discontinued Ops 452 99 1578 - -71
Total Liabilities 64170 66848 74798 -4 -14
Total Equity 9748 9799 9929 -1 -2
Total Liabilities amp Equity 73918 76647 84727 -4 -13
1
2
3
4
Participation in ΕCBrsquos QE programme with euro37bn
throughout 2016 and euro07bn in Jan17 In H12017
euro39bn of EFSFESM bonds were exchanged (short term
measures for Greek debt relief)
3 Eurosystem funding at euro158bn in Jun17 down euro11bn yoy
ΕFSF repos at euro46bn in June other repos at euro05bn
1
2
Customer deposits up euro02bn qoq adjusted for
Serbian operations (Piraeus Bank Beograd and
the local leasing subsidiary)
4
Q217 gross loans in milder deleveraging mode vs
previous quarters euro07bn write-offs in Q217
Equity slightly decreased vs Q117 (-05) mainlyaffected from discontinued operations
5
5
| H117 DEVELOPMENTS
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
Q217 Q117 qoq H117 yoy
NII 403 405 0 808 -2
NFI 74 74 1 148 7
Total Revenues 546 503 9 1048 5
OpEx (256) (258) -1 (514) -5
PPI 290 245 18 534 17
Loan impairment (249) (255) -2 (504) 10
Pre tax result 5 (26) - (21) -
SHs PAT from cont ops 14 (13) - 2 -
02
20
25 DOMESTIC PampL HIGHLIGHTS
Greek Operations (euromn)
1
2
3
4
1
2
3
4
Resilient Q217 NII in Greece qoq and slightly deceased (-2) yoy as lowerfunding costs are offset by asset deleveraging
Q217 NFI flattish yet increased by 7 yoy on the back of increasedbusiness related to e-payments money transfers and cards
Q217 OpEx decreased by 1 qoq and by 5 yoy
Pre provision income at euro290mn in Q217 increased by 18 qoq
5 Loan provisions at euro249mn decreased by 2 qoq
5
| H117 DEVELOPMENTS
Note PampL figures for 2016 exclude extraordinary financial gain of euro77mn from the sale of stake in Visa Europe
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
Business(stock)
Q216 Q316 Q416 Q117 Q217
Corporate 39 40 38 38 38
SMESBL 49 47 46 47 45
Total 44 43 42 42 41
Q216 Q316 Q416 Q117 Q217
Loan RatesTotal Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Total Stock
FrontBook
Mortgages 23 39 23 38 23 42 22 31 22 30
Consumer 86 103 84 97 83 92 76 97 76 100
Business 44 51 43 60 42 44 42 44 41 51
Total 41 52 40 61 39 45 39 45 38 52
02
21
26 DOMESTIC CUSTOMER PORTFOLIO YIELDS
Q116 Q216 Q316 Q416 Q117 Q217
Deposits 061 053 053 051 047 046
Sight 062 057 060 059 054 052
Savings 017 013 011 010 008 008
Time 110 097 093 086 082 081
avg 3m euribor -019 -026 -030 -031 -033 -033
Loans 411 407 400 391 389 380
Mortgages 238 233 228 227 222 219
Consumer 885 862 842 831 762 755
Business 440 439 431 419 423 412
Actual rates shown above refer to total Greek banking operations quarterly averages
Loan Rates Front Book Rates Steadily Above Legacy Book Customer Rates Time Deposit Rate Declines Further
Front book rates relate with minimal disbursements for retail loans while for business new production came mainly from corporate and SME segment
| H117 DEVELOPMENTS
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
03
22
A S S E T Q U A L I T Y
31 GROUP NPL STOCK amp RATIOS
32 NPL FORMATION
33 NPL NPE MOVEMENT
34 GROUP ΝPL PROVISION amp COLLATERAL COVERAGE
35 LOAN PORTFOLIO KPIs
36 NPE RATIOS amp COVERAGE
37 COVERAGE METRICS
38 RBU PORTFOLIO AT A GLANCE
39 RBU PERIMETER
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
311 VIABILITY PER SECTOR
312 AMENDMENTS IN LEGAL FRAMEWORK
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
03
23
31 GROUP NPL STOCK amp RATIOS
NPLs (euromn) Jun17
Business 15566
Mortgages 4535
Consumer 2901
TOTAL 23001
NPLs (euromn) Jun17
Greece 21799
International 1202
TOTAL 23001
Group NPL Ratio +90dpd per Product Category
Group NPL Mix
| ASSET QUALITY
378395
287
496
371385
289
486
Total Business Mortgages Consumer
Mar17 Jun17
NPEs (euromn) Jun17
Business 24987
Mortgages 6428
Consumer 3451
TOTAL 34866
NPEs (euromn) Jun17
Greece 33207
International 1659
TOTAL 34866
Group NPE Ratio per Product Category
Group NPE Mix
519
565
397
503523
569
408
497
Total Business Mortgages Consumer
Mar17 Jun17
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
03
24
32 NPL FORMATION
| ASSET QUALITY
317
075
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
321
066
-053
Q4
12
Q2
13
Q4
13
Q2
14
Q4
14
Q2
15
Q4
15
Q2
16
Q4
16
Q2
17
External conditions have normalized following the economic sentiment deterioration experienced until mid March 2017 in Greece
In Greece business NPL returned to negative territory with -euro254mn negative formation compared to +euro334mn positiveNPL flow in Q117
Greek Q2 NPL formation at -euro309mn from +euro451mn in Q1 and from -euro492mn in Q416
Group Q2 NPL formation at -euro329mn from +euro423mn in Q1 and from -euro450mn in Q416 126
230
-69 -55
-256
-386
334
-254
101
-110-95-60 -40 -61
89
-12
105
-33-68 -91
3
-45
28
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
NPL Formation (net flows over loans )
Greek NPL Formation by SegmentNote pre write-off quarterly NPL formation in euro mn or as of gross loans Q217 excludes Serbia
Group Greece
371NPL ratio
370 NPL ratio
1
2
3
4
related to 2 corporate accounts
174222
-81-49
-299-336
301
-271
104
-110-96-58 -41 -69
90
-15
108
-32-68 -82
5
-44
33
-43
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Q3
15
Q4
15
Q1
16
Q2
16
Q3
16
Q4
16
Q1
17
Q2
17
Group NPL Formation by Segment
Business Mortgages Consumer
related to 2 corporate accounts
Business Mortgages Consumer
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
247+15
-17-02
243+12
-15-02
238 +10
-15-03
230+15
-11 -07
227 +09
-12 -06
218
Mar16 Entries Exits Write-offsamp Other
Jun16 Entries Exits Write-offsamp Other
Sept16 Entries Exits Write-offsamp Other
Dec16 Entries Exits Write-offsamp Other
Mar17 Entries Exits Write-offsamp Other
Jun17
03
25
33 NPL NPE MOVEMENT
| ASSET QUALITY
Gross NPL Generation in Greece (eurobn)
-euro02bnformation
Entries Exits
NPLs (eurobn) Q1 Q2 Q1 Q2
Business +09 +04 -06 -06
Mortgages +05 +04 -04 -04
Consumer +01 +02 -01 -01
TOTAL +15 +09 -11 -12
H12017 NPL Quarterly Movement per Category
Note RBU data
Group NPEs (eurobn) Q116 Q216 Q316 Q416 Q117 Q217
ΝPLs -05 -04 -06 -10 -03 -10
Impaired loans +04 -02 +02 +01 -04 +04
Forborne loans +01 +05 +02 +04 +01 00
NPE stock movement 00 -01 -02 -05 -07 -06
NPE formation +03 +02 +01 -01 +01 -00
-euro03bnformation
-euro05bnformation
+euro04bnformation
increase qoq mainly
related to 2
corporate accounts
-euro03bn formation
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
21 26 30 30 29
45
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
36 3739 39 37
24
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
26
34 GROUP NPL PROVISION amp COLLATERAL COVERAGE
| ASSET QUALITY
4 7 10 11 11
83
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
74 74 74 77 7716
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
Jun17
Consumer NPLs
Mortgage NPLs
Business NPLs
Total Mortgage Loans
Jun17
Jun17
Jun17
Jun17
Total Business Loans
Total Consumer Loans
Jun17
+36 guarantees
+26 guarantees
+personal guarantees
+personal guarantees
+personal guarantees
+personal guarantees
Note coverage per segment = loan impairment or collateral value per segment divided by balance (NPL or total loan portfolio) total business loans exclude seasonal agri-loan in end period of year
17 25 35 40 39
67
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
5362 71 76 75
39
Dec13 Dec14 Dec15 Dec16 LLRs coverage Tangiblecollateralcoverage
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
03
27
35 LOAN PORTFOLIO KPIs
Loans KPIs per Segment (Jun2017)
in euromn | TOTAL Business Mortgage Consumer
GROUP Loans 62048 40389 15696 5964
NPL Ratio 371 385 289 486
NPL Coverage 682 751 391 765
NPE Ratio 523 569 408 497
NPE Coverage 450 468 276 643
| ASSET QUALITY
() NPE ratios for on and off balance sheet exposures as per EBA methodology
in euromn | TOTAL Business Mortgage Consumer
GREECE Loans 58905 38027 15330 5548
NPL Ratio 370 381 293 509
NPL Coverage 685 762 389 760
NPE Ratio 525 569 413 512
NPE Coverage 449 469 275 647
Forborne Loans (Jun2017 euro154bn)
NPEF 0-30dpd47
NPEF 31-90dpd11
NPEF gt90dpd
17
PF25
Domestic Loan Composition (Jun2017 )
Retail 35
17
19
25
32
41
45
42
56
78
79
101
109
94
260
Agriculture
Other Services Activities
Transportation amp Storage
Electricity Gas Steam
Shipping
Real Estate
Financial amp Insurance
Accommodation amp Food
Construction
Other
Wholesale amp Retail Trade
Manufacturing
Consumer
Mortgages
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
03
28 | ASSET QUALITY
36 NPE RATIOS amp COVERAGE
352 345
523 519
GroupNPL
90dpd
ImpliedGroup
NPE
+113
Piraeus Group NPL to NPE Reconciliation (Jun2017) Piraeus Group NPL-NPE-LLR Data per Product (Jun2017)
eurobn Exposures NPEs NPLs Performing
Impaired Forborne Contagion
Business 439 250 156 29 53 12
Mortgages 158 64 45 00 18 01
Consumer 69 35 29 01 05 00
Total 666 349 230 30 75 14
eurobn +90dpd NPEs LLRsCoverage
NPLs NPEs
Business 156 250 117 75 47
Mortgages 45 64 18 39 28
Consumer 29 35 22 77 64
Total 230 349 157 68 45
() NPL ratio over loans including off balance sheet exposures (LCLGs) Likewise for NPE ratio as per EBA definition for both numerator (euro04bn) and denominator (euro46bn)
+178Coverage
68 68
Coverage
45 46
+45
Mar17 Jun17
Group NPL gt90dpd
Jun17 Mar17
GroupNPE
Impaired ContagionForborne
+21
Impaired the effect of the inclusion of exposures which are not past due by more than 90dpd and for which the customer carries specific provisions
Forborne the additional effect of the inclusion of exposures which are not past due but have forbearance measures (ie concessions towards a debtor facing or about to face difficulties in meeting financial commitments) and are classified as non-performing as per EBA Technical Standards on forbearance and non performing exposures
Contagion the additional effect of characterizing all exposures to a debtor as NPL when the debtor has exposures in arrears more than 90dpd (pull-through effect) according to EBA technical standards
euro82bn out of euro119bn 0 dpd
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
03
29
LLRs (euromn) Jun17
Business 11689
Mortgages 1775
Consumer 2220
TOTAL 15685
LLRs (euromn) Jun17
Greece 14926
International 758
TOTAL 15685
6874
40
76
6875
39
77
Total Business Mortgages Consumer
Q117 Q217
NPL | NPL amp Cash Coverage NPL Coverage Ratio per Product
Group LLRs at 25 Over Loans
| ASSET QUALITY
37 COVERAGE METRICS
370
685
253
382
631
241
NPLs NPLs Coverage LLRLoans
Greece
International
NPL mix 68 19 13
45 47
28
645965
32
706875
39
77
Total Business Mortgages Consumer
NPE
NPEgt0dpd
NPL
NPL Coverage Ratio per Product and Status
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
03
30
38 RBU PORTFOLIO AT A GLANCE
| ASSET QUALITY
Retail Banking
CIB
Asset Management
CEO
Recovery Banking Unit (RBU)
RBU Strategy
Retail | SBL Recovery
SME Recovery
Corporate | Shipping Recovery | RBU Structured
Solution
Commercial Workouts
Task Force
Notes - figures display balances amp customers managed by Piraeus Recovery Banking Unit
- customer total number refers to unique customers (number of customers in breakdown does not add up due to customers with multiple relationships)
(eurobn )Balances
(eurobn)Customers
()FTEs ()
Corporate 66 04k 65
SME 27 16k 149
Commercial Workouts 106 32k 336
SB 12 19k
1437Retail 112 334k
Total 323 356k 1987
() SB FTEs include 100 FTEs in branches for customers holding agricultural products Retail FTEs include 341 dedicated Branch Restructuring Officers
() plus 7 FTEs in senior management office
c2500 FTEs including supporting RBU FTEs (loan admin external legal other vendors in excess of 500 FTEs in total)
Real Estate
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
(eurobn 30 Jun2017)
03
31
39 RBU PERIMETER
| ASSET QUALITY
206
01
205
372
254
118
Total Piraeus Non RBU RBU
Note figures display amounts for Piraeus Bank Greece Sums of figures may deviate from totals due to rounding
lt 90 days past due
(dpd)
gt 90 days past due
(dpd)
323
255578
Managed by non-RBU units - Transfer in subsequent wave
RBU handles Performing Retail Loans from +1 dpd (restructured loans for a period of one year post
restructuring)
RBU Balances Overview RBU Balances by Segment
74
06
40
84
38
06
53
22
112
12
93
106
Retail Small Business Corporate amp SME Commercial Workout
NPL balances Balances (lt90dpd)
(eurobn 30 Jun2017)
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
03
32 | ASSET QUALITY
310 RBU BUSINESS CUSTOMERS VIABILITY MAPPING
428 customers
euro67bn total loan balances
1597 cases
euro27bn total loan balances
Operating businesses
1350 or 85 of total
euro24bn or 87 of total
Viable (positive EBITDA)
1140 or 84 of
operating cases
euro20 bn loans or 84 of
operating cases
RBU portfolio
Corporate amp Shipping SMEs Commercial Workouts
Operating businesses
276 or 64 of total
euro43bn or 63 of total
Viable (positive EBITDA)
216 or 78 of operating
cases
euro34bn loans or 80 of
operating cases
32216 NPL cases
euro106bn total loan balances
Denounced loans gt100k
7512 or 27 of total
euro79bn or 93 of total
Operating cases
3845 or 51 of
denounced gt100k
euro42bn loans or 54 of
denounced gt 100k
bull Mapping taking into account borrowersrsquo needs viability and affordability in a through-the-cycle approach
bull Aim is to take advantage of the changes in the legal framework and the wealth of data gained through acquisitions to deal with strategic defaulters
bull 81 of balances related to
operating SMEs and Corporate refer to customers that are deemed viable displaying positive EBITDA
RBU portfolio RBU portfolio
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
Viable businesses
euro20bn or 84 of operating cases
Viable businesses
euro34bn or 80 of operating cases
33 | ASSET QUALITY
03 311 VIABILITY PER SECTOR
Corporate amp Shipping RBU SMEs RBU
| Q32016 ASSET QUALITY
90
73
73
82
73
96
Manufacturing
RE amp Construction
Trade
Transportation
Other
Accommodation amp Food
79
84
75
89
89
91
RE amp Construction
Trade
Other
Manufacturing
Τransportation
Accomodation amp Food
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
03
34 | ASSET QUALITY
312 AMENDMENTS IN LEGAL FRAMEWORK
Changes Introduced in 2014 - 2016
bull Seizures and auctions expedited (from 18-38 months to lt12 months) and ranking and recovery of creditors with liens or encumbrances substantially improved (banks receive 65-100 of the commercial value) Significant reduction of relevant cost for the banks (c20)
bull Expedition of insolvency process
bull Efficiency of consolidation process (art 99) - enforcement proceedings can be stayed when 30 of the creditors (20 of which hold debt secured with liensencumbrances) agreeto participate in the consolidation process which has a maximum duration of 12 months
bull Simplification and expedition of the winding-up process
bull A process of bankruptcy for natural persons similar to Chapter 13 or Chapter 7 of the US Bankruptcy Code (first time with L38692010 lastly modified with L43462015)
bull Provides individuals (not merchants or business customers) the opportunity to propose a payment plan of financial reorganization under the protection of the court The paymentplan should comply with the ldquono creditor worse offrdquo principle
bull The only protected asset under the law is the debtorrsquos primary residence Certain criteria apply for eligibility Pool A (family with 2 kids) property taxable value lteuro200k and incomelteuro21k Pool B (family with 2 kids) property taxable value lteuro260k and income lteuro35k In order to ensure a residence protection the debtor must submit a payment plan for allhisher creditors
bull Amendments for immediate liberalization of management and sale of all performing and non-performing loans with temporary exception for the sale of NPLs secured by primaryresidence with an objective value of the property up to euro140k for which the liberalization will enter in force on 010118
Changes Introduced in 2017
bull Law 44692017 on Out of Court Workouts (ldquoOCWrdquo) introduces a new process of extrajudicial settlement of debts gteuro20000 to the extent that the restructuring of such debts isconsidered by all participants as necessary for the sustainability of the debtorrsquos business The OCW aims to accelerate the NPL deleverage effort and tackle the category of strategicdefaulters
bull Law 44722017 introduced among others
(a) provisions to ensure that there is no civil or criminal liability of credit or financial institutions and public sector officials when involved in debt restructuring provided thatsuch restructuring is in compliance with a set of objective criteria (indemnity)
(b) amendments to the legal framework for the licensing and operating of banking receivablesrsquo servicing platforms with the purpose to simplify the process and documentationrequired and
(c) an amendment to the Greek Code of Civil Procedure will enable the electronic auctions for foreclosed properties so as to avoid disruptions in the auction procedures byactivists
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
04
35
L I Q U I D I T Y
41 GREEK MARKET LIQUIDITY
42 DOMESTIC DEPOSITS
43 PIRAEUS DEPOSIT COST
44 EUROSYSTEM FUNDING
45 EFSM | ESM HOLDINGS
46 EFSF|ESM BOND EXCHANGE
47 INTERBANK REPOS
48 CAPITAL CONTROLS UPDATE
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
04
36
41 GREEK MARKET LIQUIDITY
| LIQUIDITY
100
120
140
160
180
200
220
240
260
280
2009 2010 2011 2012 2013 2014 2015 2016
Deposits
Loans
40
60
80
100
120
140
2009 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
2009 2010 2011 2012 2013 2014 2015 2016
ELA
ECB
Eurosystem at ceuro50bn in Jul17 (ELA euro35bn ECB euro16bn) -euro76bn vs Jun15 peak
Eurosystem Funding (eurobn)Customer Deposits amp Currency in Circulation (eurobn)
Net Loans to Deposits Ratio ()Loans amp Deposit Balances (private sectoreurobn)
Banknotes at euro40bn in Jul17 -euro11bn vs Jun15 peak
LDR at 116 in Jul17 -21bps vs Jun15 peak
Deposits down euro01bn ytd in Jul17 Loans down euro6bn ytd in Jul17 ow euro33bn write-offs
euro189
euro121
euro35
euro16
116
euro130
euro42
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015 2016
100
150
200
250
300 Deposits
Currency in Circulation
euro40
euro132
Source Bank of Greece
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
04
37
42 DOMESTIC DEPOSITS
| LIQUIDITY
Greek market
37 37
63 63
Jun 17 Jun 17
Time deposits Savings-Sight deposits
Domestic Deposit Mix ()
Piraeus FY16 Q117 Q217 Jul17
Mass|Farmers +10 -05 +02 +00
Affluent|Private Banking +06 -03 -00 +01
SB +02 -01 +02 +01
SME +02 -00 +01 -00
Corporate +06 +00 -01 +00
Govt amp Other +05 -04 -03 +01
Total +31 -13 +01 +03
Deposit Movement by Segment (eurobn)
Greek market
Customer Deposit Movement in Greece (eurobn)
134
-24
+08 +17 +56133
-26
+09 131 +08
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
36
-11
+04 +09 +29 39
-13
+015 38 +03
Dec15 Q116 Q216 Q316 Q416 Dec16 Q117 Q217 Jun17 Jul17
Piraeus - Greece
24 25
76 75
Jun 17 Jun 17
Business Retail
Greek market Piraeus - Greece
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
039
061
009
028
Dec12 Dec13 Dec14 Dec15 Jun16 Sep16 Oct16 Nov16 Dec16 Mar17 Jun17
Euro area Greece Spain Portugal
04
38
43 PIRAEUS DEPOSIT COST
| LIQUIDITY
Time deposit cost further decrease
Continuous effort to reduce deposit cost in line
with approved Restructuring Plan
New time deposit cost currently at c61bps
Gradual increase of market sentiment and
inflows in deposits are not expected to trigger
any deviation from deposit pricing discipline
Greek Customer Deposit Rates (mtd )
Greek Time Deposit Rates | Stock vs New (mtd )
New Time Deposit Rates in European Periphery ()
Deposit Cost Further Improved
1
2
3
Lower deposit rates
Lower ELA
No Law 3723 utilization
Interbank repo lower rates
Supporting NII
4
440
364
271
227
177 174
095081 073 065 061
458
404
305
262
195175
117093 089 086
081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec 16 Jun17
New time deposits
Time deposits (stock)
291
274
204179
130105
063 052 053 049 047 046
458
404
305
262
195175
117093 089083 081 081
Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Sep16 Dec16Mar17Jun17
Total deposits (stock)
Time deposits (stock)
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
04
39
44 EUROSYSTEM FUNDING
| LIQUIDITY
Dec14 Dec15 Sep16 Dec16 Mar17 Jun17late
Aug
ECB 141 160 111 90 45 55 52
EFSF|ESM Bonds 57 153 95 73 28 39 35
GGBs and T-bills 10 - 09 09 09 09 09
L3723 68 - - - - - -
Other 06 07 07 08 08 07 08
ELA - 167 127 119 110 103 85
GGBs and T-bills - 08 - - - - -
L3723 - 57 - - - - -
Loans amp Other - 102 127 119 110 103 85
Total 141 327 238 209 155 158 137
Eurosystem Funding (eurobn)
149 151 146 160 144124 111
9045 55 52
154
222212 167
161
144127
119
110 10385
100
141
303
373 358
327304
268
238209
155 158137
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 lateAugust
ELA
ECB
Collateral Used for Eurosystem Funding - Cash Values (eurobn)
ELA Utilization amp Buffer
1
2
3
ELA utilization drops further to euro85 in late August 2017
ELA collateral buffer estimated at euro9bn based on existing
collateral valuation and haircuts
No utilization of Pillar 2 support scheme since April 2016
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
Up to end of Jan17 Piraeus has sold EFSF notes with a nominal
value of euro44bn in the QE program
04
40
45 EFSF | ESM HOLDINGS
| LIQUIDITY
Initial ESM Holdings by Maturity (euromn)
Initial EFSF Holdings by Maturity (euromn)
ISINIssue Date
Maturity Date
CpnFace Value
1 EU000A1U9852 27-Aug-15 27-Feb-17 6m euro -18 813
2 EU000A1U9860 27-Aug-15 27-Aug-17 6m euro -20 812
3 EU000A1U9878 27-Aug-15 27-Feb-18 6m euro -21 1081
Total amp Average 07 Yrs 6m euro -20 2706
Issue Date
Maturity Date
Cpn Face Value
1 19-Apr-12 19-Apr-18 6m euro +46 2340
2 19-Apr-12 19-Apr-19 6m euro +57 2340
3 19-Apr-12 19-Apr-20 6m euro +64 2340
4 19-Apr-12 19-Apr-21 6m euro +71 2240
5 19-Apr-12 19-Apr-22 6m euro +77 2240
6 19-Dec-12 19-Dec-22 6m euro +34 484
7 19-Dec-12 19-Dec-23 6m euro +35 983
8 19-Dec-12 19-Dec-24 6m euro +36 1176
9 Total amp Average 40 Yrs 6m euro +58 14142
Piraeus Bank eurobn
1 Q216 15
2 Q316 09
3 Q416 13
4 Q117 07
5 TOTAL 44
ECB QE Participation
In Apr16 EFSF allowed Greek Banks to participate in the ECB
Quantitate Easing (ldquoQErdquo) with EFSFESM notes acquired in the
framework of their recapitalisation andor the consolidation of
the banking sector
Post Jan17 Greek banksrsquo participation in the program
stopped as the short-term relief measures of Greek public
debt initiated
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
04
41
46 EFSF|ESM BOND EXCHANGE
| LIQUIDITY
Dec15 euro168bn
QE sales euro44bn
Feb17 euro124bn
EFSF
QE
Sale
s
Q117 amp Q217 amp Q317euro82bn
ESM
|EFS
F Ex
chan
ge
At the end of August17 Piraeus outstanding balance of ESM amp EFSF notes
will stand at euro42bn
End of August17euro42bn
Early this year Piraeus agreed to participate in the ESM amp EFSF Bond
Exchange Programs in the context of the Short Term Measures for the
relief of Greek Public Debt
Piraeus ESM|EFSF Portfolio
Piraeus contribution to the Bond Exchanges so far amounted to a nominal
value of euro82bn
It is expected that the ESM | EFSF Bond Exchange will continue in the
forthcoming months reducing the Bankrsquos respective overall balances
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
0
200
400
600
800
1000
1200
1400
Mar
16
Ap
r1
6
May
17
Jun
16
Jul1
6
Au
g1
6
Sep
16
Oct
16
No
v16
Dec
16
Jan
17
Feb
17
Mar
17
Ap
r1
7
May
17
Jun
17
0
2000
4000
6000
8000
10000
12000
14000
Dec
12
Mar
13
May
13
Jul1
3
Sep
13
No
v13
Jan
14
Mar
14
May
14
Jul1
4
Sep
14
No
v14
Jan
15
Mar
15
May
15
Jul1
5
Oct
15
Dec
15
Feb
16
Ap
r1
6
Jun
16
Sep
t1
6
Dec
16
Jun
17
04
42
47 INTERBANK REPOS
| LIQUIDITY
Funding from EFSF Repos (euromn) Interbank Repos Τrends
Funding from Non-ECB Eligible Collateral (euromn)
euro46bnJun17 Interbank funding through EFSF bond repos stood at ceuro5bn in June
2017 from euro6bn in December 2016 due to the ongoing exchange in
the framework of ST measures for Greek Public Debt relief
Cost of funding at negative territory for EFSF repos
Increased volume assisting reduction of Eurosystem reliance
Initiation of interbank repo activity with non-ECB eligible collateral in
the past 12 months balances at euro09bn in late August
1
2
3
euro06bnJun17
4
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
Cash Withdrawal Limit
bull 100 of cash deposited after 220716 can be withdrawn
bull euro840 equivalent per fortnight per customer (applicable up
to 31082017)
bull euro1800 equivalent per month per customer (applicable
from 01092017)
Purchase of Greek Mutual
Fundsbull Allowed
New Account Opening
bull Allowed for existing (as of 110316) customers
bull Subject to specific criteria eg primary payroll account
for new customers
Greek Capital Market
Instrumentsbull Allowed
Additional Account
Beneficiary
bull Allowed for existing (as of 110316) customers
bull Prohibited for new customers
Foreign Investments
Liquidationbull Proceeds can be re-invested
Transfers from abroad
bull 100 of incoming funds can be re-transferred abroad
bull 10 of incoming funds received before 220716 can be
withdrawn in cash
bull 30 of incoming funds received between 220716 and
31082017 can be withdrawn in cash
bull 50 of incoming funds received after 01092017 can be
withdrawn in cash
Change of Custodian
Bankbull Prohibited when changing to foreign custodian
Outgoing Wire Transfers
abroadbull Private individuals can transfer up to euro1000 per month Trade Related Payments
bull lteuro350k approval at bank level
bull Weekly limit for bank-level committee at euro112mn
bull gteuro350k approval by the Banking Transactions
Approval Committee
Time Deposit Break bull Allowed Early Loan Repayment bull Allowed
04
43
48 CAPITAL CONTROLS UPDATE
| LIQUIDITY
22 ministerial decisions since imposition of Capital Controls indicating a gradual relaxation of the relative framework
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
05
44
A P P E N D I X
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
52 LOAN amp DEPOSIT PORTFOLIOS
53 OVERVIEW OF INTERNATIONAL OPERATIONS
54 SEE MACRO OUTLOOK
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
05
45 | APPENDIX
51 GROUP RESULTS DOMESTIC amp INTERNATIONAL
Greece (euromn) International (euromn)
Q217 Q117 qoq H117 H116 yoy
Net Interest Income 403 405 0 808 827 -2
Net Fee Income 74 74 1 148 138 7
Banking Income 478 478 0 956 965 -1
Trading amp Other Income 68 24 gt100 92 110 -16
Total Net Revenues (reported) 546 503 9 1048 1075 -2
Total Net Revenues (recurring) 546 503 9 1048 998 5
Employee Costs (130) (130) 0 (260) (273) -5
Administrative Expenses (103) (104) -1 (208) (221) -6
Depreciation amp Other (22) (24) -5 (46) (46) 1
Total Operating Costs (recurring) (256) (258) -1 (514) (540) -5
Pre Provision Income (reported) 290 245 18 534 535 0
Pre Provision Income (recurring) 290 245 18 534 458 17
Result from Associates (18) (8) - (27) (24) 10
Impairment on Loans (249) (255) -2 (504) (458) 10
Impairment on Other Assets (17) (8) - (24) (33) -26
Pre Tax Result 5 (26) - (21) 20 -
Tax 8 13 -37 21 (3) -
Net Result Attributable to SHs 14 (13) - 2 18 -
Discontinued Operations Result (23) (1) - (24) 0 -
Q217 Q117 qoq H117 H116 yoy
33 32 3 65 67 -3
8 7 13 15 14 3
41 39 5 80 82 -2
(3) 6 - 3 14 -79
38 44 -14 83 96 -14
38 44 -14 83 96 -14
(13) (13) 4 (26) (24) 6
(20) (16) 22 (36) (39) -6
(3) (3) 5 (6) (7) -21
(36) (32) 13 (68) (70) -3
2 13 -83 15 25 -42
2 13 -83 15 25 -42
(1) 1 - 0 0 -
(10) (5) - (14) (34) -59
(2) (4) -48 (5) (10) -48
(10) 6 - (4) (19) -78
2 0 - 2 (12) -
(8) 6 - (2) (31) -
(51) 1 - (51) (27) -
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
05
46 | APPENDIX
52 LOAN amp DEPOSIT PORTFOLIOS
Gross Loans Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 66187 65399 64947 63787 62048 -6 -3
Business 43142 42582 42511 41719 40389 -6 -3
Mortgages 16427 16273 16162 15950 15696 -4 -2
Consumer 6617 6544 6274 6118 5964 -10 -3
Greece 62250 61547 61296 60216 58905 -5 -2
Business 40185 39694 39792 39069 38027 -5 -3
Mortgages 15959 15810 15707 15502 15330 -4 -1
Consumer 6106 6043 5797 5646 5548 -9 -2
Intrsquol 3936 3852 3650 3571 3143 -20 -12
Business 2957 2887 2719 2650 2362 -20 -11
Mortgages 468 463 455 448 366 -22 -18
Consumer 511 501 476 472 416 -19 -12
Deposits Evolution (euromn)
Jun16 Sep16 Dec16 Mar17 Jun17 yoy qoq
Group 38817 39694 42365 40960 40918 5 0
Savings 14597 14138 14995 14294 14379 -1 1
Sight 9140 9592 11190 10676 10860 19 2
Time 15080 15964 16179 15990 15679 4 -2
Greece 35925 36786 39322 38036 38185 6 0
Savings 14292 13798 14613 14001 14069 -2 0
Sight 8648 9051 10536 9964 10123 17 2
Time 12985 13938 14172 14071 13993 8 -1
Intrsquol 2892 2908 3043 2924 2733 -5 -7
Savings 305 341 382 293 310 2 6
Sight 491 541 654 712 737 50 4
Time 2095 2026 2007 1919 1686 -20 -12
Notes loan balances exclude seasonal agri-loan of euro17 bn for Dec16 Serbia excl in Jun17 figures
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
05
47 | APPENDIX
53 OVERVIEW OF INTERNATIONAL OPERATIONS
Albania
BulgariaRomania
Ukraine
London Frankfurt
Branches () 98
Employees () 1300
Assets 1522
Net loans 729
Deposits 942
Branches () 73
Employees () 927
Assets 1520
Net loans 719
Deposits 1125
Branches () 18
Employees () 444
Assets 118
Net loans 43
Deposits 49
Branches () 39
Employees () 447
Assets 603
Net loans 187
Deposits 453
Branch () 1
Employees () 19
Assets 864
Net loans 656
Deposits 24
Branch () 1
Employees () 12
Assets 176
Net loans 21
Deposits 140
(euromn as at Jun2017)
Branches
Branches () 230
Employees () 3149
Assets euro48bn
Net loans euro24bn
Deposits euro27bn
Total International1
Consolidated financial data for international operations
Market Shares Loans Deposits
Albania 55 61
Bulgaria 30 30
Romania 15 12
Ukraine 02 02
Subsidiaries
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
05 54 SEE MACRO OUTLOOK
| APPENDIX48
hellipas the current account deficits have declined compared to the pre-crisis period
hellipas growth rates even above 50 are recorded
Real GDP
( yoy)
Inflation
( yoy CPI)
Fiscal Balance
( GDP)
Current Account
Balance ( GDP)
2015 2016 2017f 2015 2016 2017f 2015 2016 2017f 2015 2016 2017f
Albania 26 34 35 19 13 25 -40 -18 -15 -108 -120 -125
Bulgaria 36 34 29 -10 -13 10 -28 16 -10 -01 42 20
Cyprus 17 28 30 -15 -12 05 -14 -03 -02 -30 -24 -22
Romania 39 48 45 -06 -15 14 -15 -24 -30 -12 -24 -26
Serbia 07 28 29 14 11 27 -38 -13 -14 -48 -40 -41
Ukraine -99 23 19 487 139 110 -12 -22 -35 -03 -36 -35
Sources Piraeus Bank Research National Statistical Sources
hellipvs an improving labour market in the EU
SEE Growth shows significant signs of overperformance The elevated rates of unemployment remain a challengehellip
The External Sector Imbalances have Moderated Significantlyhellip Table of Economic Forecasts
-16
-14
-12
-10
-8
-6
-4
-2
0
2
4
6
8
Albania Bulgaria Cyprus Romania Serbia Ukraine200005 200610 201116
of GDP
-10
-8
-6
-4
-2
0
2
4
6
8
10
Q2
20
08
Q3
20
08
Q4
20
08
Q1
20
09
Q2
20
09
Q3
20
09
Q4
20
09
Q1
20
10
Q2
20
10
Q3
20
10
Q4
20
10
Q1
20
11
Q2
20
11
Q3
20
11
Q4
20
11
Q1
20
12
Q2
20
12
Q3
20
12
Q4
20
12
Q1
20
13
Q2
20
13
Q3
20
13
Q4
20
13
Q1
20
14
Q2
20
14
Q3
20
14
Q4
20
14
Q1
20
15
Q2
20
15
Q3
20
15
Q4
20
15
Q1
20
16
Q2
20
16
Q3
20
16
Q4
20
16
Q1
20
17
Q2
20
17
20
17
YoY
European Union Countries with Piraeus Bank Presence excl Ukraine
4
6
8
10
12
14
16
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
European Union Countries with Piraeus Bank Presence excl Ukraine
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES
49
1 Net loans to deposits ratioLoans and advances to customers (net of impairments) over customer deposits In case mentioned that the index isadjusted for seasonal agri-loan facility to OPEKEPE - Payment Authority of Common Agricultural Policy (CAP) AidSchemes - an amount of euro17bn is subtracted for 31122016 and euro10bn for 31122015
2 Core banking revenues Net interest income plus net fee and commission income
3 NII Net interest income
4 OpEx Operating expenses before provisions
5 Cost to income ratio on a recurring basisTotal operating expenses net of impairments on a recurring basis (excluding the extraordinary expense of year 2015 for the employee retirement scheme) over total net revenues on a recurring basis (excluding the extraordinary revenue from participation in VISA as a result of the sale of VISA Europe to Visa Inc on June 21st 2016)
6Profit before provisions impairment and income tax (PPI)
Total net income minus total operating expenses before impairments
7Recurring profit before provisions impairment and income tax
Total net income minus total operating expenses before impairments on a recurring basis as per the adjustments in item 5
8Profit before provisions impairment and income tax net of extraordinary items
As in item 5
9 Cost of Risk (CoR) Loan impairments for the period over gross loans before adjustments excluding seasonal agri-loan facility (as item 1)
10 DTAs Deferred tax assets
11 NPLs-Non performing loans Loans in arrears over 90 days past due
12 NPEs-Non performing exposures
On and off balance sheet credit exposures (a) that are past due over 90 days (b) impaired or those which the debtor is deemed as unlikely to repay its obligations in full without liquidating collateral regardless of the existence of any past due amount or the number of past due days (c) forborne and still within the probation period under EBA rules (d) contagion from (a) according to EBA technical standards
13 NPENon performing exposures ratio NPEs over loans and advances to customers (including off balance sheet exposure before impairments)
14 NPLNon performing loans ratio Non-performing loans over gross loans and advances to customers (before impairments)
| GLOSSARY
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
GLOSSARY | DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (contrsquod)
50
15 Coverage of loans in arrears over 90 days (NPLs) ratio Cumulative provisions of loans and advances to customers over loans in arrears over 90 days past due
16Coverage of loans in arrears over 90 days (NPLs) ratio by cumulative provisions
As in item 15
17 Cumulative provisions (LLRs) over gross loansCumulative provisions for loans and advances to customers over gross loans and advances to customers (before impairments)
18 Capital adequacy ratio Total regulatory capital over risk weighted assets
19 CET-1 capital adequacy ratio CET-1 regulatory capital over risk weighted assets
20 Net interest margin (NIM)Net interest income over total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
21 Net fee income (NFI) over assetsNet fee and commission income over average beginning and end of period total assets excluding assets of discontinued operations EFSFESM bonds and the seasonal loan to OPEKEPE as per item 1 above
22 New NPL formation over loansChange of the stock of NPLs over 90 days past due adding back write-downs or other adjustments eg loan sales or debt to equity swaps over loans and advances to customers (before impairments)
23 Common Equity Tier-1 ratio (phased-in) Ratio as per item 19 above with phased-in implementation excluding items in accordance with Basel III definitions
24 Common Equity Tier-1 ratio (fully loaded) Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions
25Common Equity Tier-I ratio (fully loaded excluding the provisions of L41722013)
Ratio as per item 19 above with fully loaded implementation excluding items in accordance with Basel III definitions excluding the part of regulatory capital related to deferred tax assets based on L41722013 and the respective adjustment to risk weighted assets
| GLOSSARY
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations
51
COMMUNICATION
4 Amerikis St 105 64 Athens
Tel (+30 ) 210 3335062 3288332 3335026
investor_relationspiraeusbankgr
Bloomberg TPEIR GA | Reuters BOPrAT
ISIN GRS014003024 | SEDOL BYWKR93
wwwpiraeusbankgroupcom
Corporate Development amp Investor Relations